TLDR
- Costco, Philip Morris, and Coca-Cola are highlighted as long-term dividend stocks to hold indefinitely
- Coca-Cola hit a 52-week high of $82.62 after Citigroup raised its price target to $91
- Coca-Cola reported Q1 2026 EPS of $0.86, beating estimates, with revenue up 11.4% year-over-year
- Philip Morris now earns 41.5% of net sales from alternative nicotine products like Iqos and Zyn
- Coca-Cola has raised its dividend for 64 straight years; Philip Morris has raised it every year since 2008
Analysts and financial commentators are pointing to Costco Wholesale, Philip Morris International, and Coca-Cola as dividend stocks with strong long-term potential. Each operates in the consumer goods sector, and each has a track record of returning money to shareholders through regular dividends.
Here is a closer look at what makes each company stand out right now.
Costco Wholesale
Costco runs a warehouse retail model built around paid memberships. Those membership fees are the real driver of its profits, which lets the company sell goods at very thin margins. The model tends to attract higher-income shoppers who buy in bulk to save money per unit.
Costco Wholesale Corporation, COST
The company spends nothing on advertising. Its cult-like brand loyalty, built partly around items like its famous $1.50 hot dog, has helped it grow consistently over the years.
Costco pays regular dividends and has handed out special dividends from time to time. The stock has outperformed the S&P 500 by a wide margin over time, though there is no guarantee that will continue.
Management continues to grow the business through a mix of new store openings, rising sales, and periodic membership fee increases.
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 has been shifting its business toward smoke-free alternatives.
Philip Morris International Inc., PM
Products like Iqos, a heat-not-burn tobacco device, and Zyn oral nicotine pouches 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 falling slowly, but Philip Morris says Iqos growth is more than making up for that decline. The company spun off from Altria Group in 2008 and has raised its dividend every year since.
The current dividend yield sits at around 3% based on recent share prices. That yield, combined with the company’s cash generation, makes it a stock income investors continue to watch.
Coca-Cola
Coca-Cola recently hit a 52-week high of $82.62 after Citigroup raised its price target from $90 to $91, keeping a buy rating on the stock. Jefferies raised its target to $90. Barclays and JPMorgan both moved theirs to $85. Morgan Stanley holds 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 Q1 2026 earnings of $0.86 per share, beating the consensus estimate of $0.81. Revenue came in at $12.47 billion, above the $12.24 billion forecast, and up 11.4% from the same quarter last year.
Full-year 2025 net income rose 23% to $13.1 billion. Revenue for that year came in just under $48.4 billion, compared to $38.7 billion in 2020.
Dividend and Outlook
Coca-Cola declared a quarterly dividend of $0.53 per share, payable July 1, to shareholders on record as of June 15. The annualized dividend of $2.12 gives a yield of around 2.6%, well above the S&P 500 average of 1.1%.
The company has now raised its dividend for 64 straight years, earning it a place among the so-called Dividend Kings. Analysts have pointed to the 2026 FIFA World Cup as a potential demand driver this summer. The launch of Fresca Hard has also added to the company’s ready-to-drink alcohol lineup.
Coca-Cola has set full-year 2026 EPS guidance of $3.24 to $3.27. Analysts are currently expecting $3.26 for the full year.
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