Best long-term dividend stocks in 2026: Costco, Philip Morris, and Coca-Cola top the list

TLDR

• Costco, Philip Morris and Coca-Cola have been highlighted as long-term dividend stocks that can be held indefinitely
• Coca-Cola reached a 52-week high of $82.62 after Citigroup raised its price target to $91.
• Coca-Cola reported first-quarter 2026 EPS of $0.86, beating estimates, with revenue up 11.4% year over year
• Philip Morris now gets 41.5% of net sales from nicotine replacement products such as Iqos and Zyn
• Coca-Cola has raised its dividend for 64 consecutive years; Philip Morris has raised it every year since 2008

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Analysts and financial commentators point to Costco Wholesale, Philip Morris International, and Coca-Cola as dividend stocks with strong long-term potential. Each of them operates in the consumer goods sector, and each has a track record of returning cash to shareholders through regular dividends.

Here’s a closer look at what makes each company stand out right now.

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Costco wholesale

Costco It operates a warehouse retail model based on paid memberships. These membership fees are the real driver of its profits, allowing the company to sell merchandise at razor-thin profit margins. The model tends to appeal to higher-income shoppers who buy in bulk to save money per unit.

Costco Wholesale, Cost

The company spends nothing on advertising. Its brand loyalty, built in part around items like its famous $1.50 hot dogs, has helped it grow consistently over the years.

Costco pays a regular dividend and distributes a special dividend from time to time. The stock has outperformed the S&P 500 by a large margin over time, although there is no guarantee that it will continue.

Management continues to grow its business through a combination of new store openings, higher sales, and periodic membership fee increases.

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Philip Morris International

Philip Morris is the world’s largest publicly traded tobacco company by international sales. It sells Marlboro outside the United States and is shifting its business toward smoke-free alternatives.

Philip Morris International, PM

Products like Iqos, a device that heats tobacco but does not burn it, and Zyn oral nicotine pods now account for 41.5% of total net sales as of 2025. The company expects these products to eventually replace the declining cigarette business.

Cigarette volumes are slowly declining, but Philip Morris says Equus’ growth is more than offsetting the decline. The company spun off from the Altria Group in 2008 and has increased its dividend every year since.

The current dividend yield is around 3% based on recent stock prices. This return, combined with the company’s cash generation, makes it an income stock that investors continue to watch.

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coca cola

coca cola It recently hit a 52-week high of $82.62 after Citigroup raised its price target from $90 to $91, while maintaining a buy rating on the stock. Jefferies raised its target to $90. Barclays and JPMorgan both moved their price to $85. Morgan Stanley has a target of $88.

In total, 15 analysts now rate the stock a buy, with a consensus target of $86.53, according to MarketBeat data.

The company reported first-quarter 2026 earnings of $0.86 per share, beating the consensus estimate of $0.81. Revenue was $12.47 billion, above expectations of $12.24 billion, and up 11.4% from the same quarter last year.

Full-year 2025 net income rose 23% to $13.1 billion. Revenues that year were just under $48.4 billion, compared to $38.7 billion in 2020.

Dividends and forecasts

Coca-Cola declared a quarterly dividend of $0.53 per share, payable on July 1, to shareholders of record as of June 15. An annual dividend of $2.12 gives a yield of about 2.6%, which is well above the S&P 500 average of 1.1%.

The company has now raised its dividend for 64 consecutive years, earning it a place among the so-called dividend kings. Analysts have pointed to the 2026 FIFA World Cup as a potential driver of demand this summer. The launch of Fresca Hard has also added to the company’s lineup of ready-to-drink alcoholic beverages.

Coca-Cola set full-year 2026 EPS guidance of $3.24 to $3.27. Analysts currently expect $3.26 for the full year.