3 Dividend Growth Stocks That Could Pay You for Life
This article discusses three dividend growth stocks that can provide long-term passive income: Procter & Gamble, Chevron, and another unnamed stock. Procter & Gamble has a strong history of increasing dividends for 69 years, currently yielding 2.77%. Chevron, with a dividend yield of 4.48%, has increased dividends for 38 years and recently acquired Hess Corp. Both companies are positioned to weather economic challenges and provide reliable income for investors.
- Holding these three dividend stocks for the long-term can build a steady passive income stream.
- Each of these companies has a strong history of increasing dividends.
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Picking stocks that can pay you for life can be overwhelming. With hundreds of dividend stocks to choose from, you have to be very careful with the ones you intend to keep forever. A steady dividend payment can help cover your expenses or build a retirement fund. Dividend reinvestment can help build wealth, and a company with a strong dividend history is the best guarantee an investor can find.
2025 has been a volatile year, which has led investors to seek safe, steady investment options. This is where dividend stocks come into play. If you want to diversify your portfolio or build a portfolio of dividend stocks that can pay you for life, consider these three.
Procter & Gamble
The global consumer products company Procter & Gamble (NYSE:PG) owns some of the most popular brands, including Tide, Pampers, Charmin, and Gillette. The company has built a diversified portfolio and holds a strong market share.
Exchanging hands for $152, PG stock is down 10% in 12 months and very close to the 52-week low of $149. This dip is a golden opportunity to buy the stock. It has a dividend yield of 2.77% and has increased dividends for 69 consecutive years. In the recently announced fourth-quarter results, the company reported a revenue of $20.89 billion and an EPS of $1.48.
In the earnings call, the management spoke about the impact of tariffs, due to which there will be price hikes in the upcoming quarter. It could see a $1 billion pretax hit due to the increasing costs from tariffs. The company saw a 2% jump in sales to $20.89 billion while the net income stood at $3.62 billion.
Despite dealing with the talc lawsuit, Procter & Gamble has maintained its strong market position, and its efforts to focus on the core portfolio will pay off in the coming years.
Bank of America has a buy rating with a price target of $180, while Barclays has an equal weight rating with a price target of $164. Despite the macroeconomic challenges and slowing growth, PG is a dividend stock to depend on. For a company that’s been in the business for over 100 years, PG is one of the most reliable players in the market.
Chevron
Oil and gas giant Chevron (NYSE: CVX) is a major player in the industry. It has an upstream and downstream business which ensure steady cash flow, despite the volatility in oil prices. The company recently completed the acquisition of Hess Corp. (NYSE: HES) which will open new opportunities worth $1 billion in pre-tax figures. This acquisition will give Chevron control of one of the world’s fastest growing oil developments and make the business even stronger.
No matter the oil prices, Chevron is a solid business with minimal debt. The stock is exchanging hands for $152, up 4.14% year-to-date and 7.2% in 12 months. It has a dividend yield of 4.48% and has increased dividends for 38 consecutive years.
In the recently announced second-quarter results, Chevron reported a revenue of $44.82 billion and an EPS of $1.77. Its net income dropped 44% to $2.49 billion while the U.S. production jumped 8%. Chevron has an impressive balance sheet with minimal debt and solid cash flow. It reported $4.9 billion of free cash flow in the quarter, allowing it to sustain the dividends.
We’ll always see oil demand, and Chevron expects to see a surge in free cash flow next year by ramping up the output in recently completed projects. This is one solid dividend stock you’ll never regret holding for life.
Bank of America has a buy rating for the stock with a price target of $170. UBS has a price target of $186 with a buy rating, while Morgan Stanley has a price target of $174 with an overweight rating.
Coca-Cola
A global leader in non-alcoholic beverages, Coca-Cola (NYSE:KO) is one of the top dividend stocks that can generate steady income for years to come. The stock is exchanging hands for $69, up 12% year-to-date and 8.8% in six months. Coca-Cola has a strong presence across multiple countries that ensures steady revenue growth.
There are several catalysts working for Coca-Cola. It is a highly diversified business and offers soda, coffee, tea, and water. It is tarrif-resistant to some extent since the business is done locally across the globe. Coke is a very powerful brand and one that needs no introduction.
It has a dividend yield of 2.93% and has increased dividends for 63 consecutive years. The company has seen several ups and downs, and remains highly relevant today. In the second-quarter results, it reported a revenue of $12.62 billion and an EPS of 87 cents. It topped expectations but failed to impress investors. Net sales increased 1% and the strong demand across Europe helped offset the dip in volume across other countries.
Bank of America has a buy rating with a price target of $78.
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