3 Dividend Stocks to Hold for the Next 10 Years

Key PointsAmerican Express gets money from its card and also by providing loans.
Coca-Cola's global footprint is a strength.
McDonald's is the world's top fast-food franchise and plans to open 2,200 new locations this year.
- 10 stocks we like better than Coca-Cola ›
American Express gets money from its card and also by providing loans.
Coca-Cola's global footprint is a strength.
McDonald's is the world's top fast-food franchise and plans to open 2,200 new locations this year.
I've always appreciated dividend stocks as a solid strategy for any investment portfolio. While I recognize the importance of growth stocks (and hold several of them), stocks that represent companies that pay a solid, consistent dividend also are an important tool for growing wealth.
The best thing about dividend stocks is that they're ideal for all types of investors. If you're just starting out or a few years into building your portfolio, dividends are a great way to turbocharge your savings. In addition to the gains you get when the stock price rises, you can take the quarterly dividend payout and reinvest it, adding to your positions and growing wealth more quickly.
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If you're in retirement and starting to draw down your investments, dividend stocks are an ideal way to keep the income flowing. Many investors in retirement use dividend payouts to pay for living expenses, which keeps them from drawing down their retirement funds too quickly.
There are hundreds of dividend stocks from which to choose, but I prefer ones from established companies that provide consistent payouts. Here are three that are worth considering today.
1. Coca-Cola
I like Coca-Cola (NYSE: KO) because it has a dominant position in the beverage industry, holding the No. 1 position in 2024 with a 48% market share, according to Statista. And there's plenty to drink aside from the famous Cola-Cola carbonated beverage. The company also sells bottled water, sports drinks, tea, juices and a line of alcoholic beverages. In all, the company has 30 brands that are each valued at a minimum of $1 billion.
Revenue in the first quarter declined 2% to $11.1 billion because of slumping sales in North America. But Coca-Cola was able to mitigate losses by increasing sales in China, India, and Brazil -- and the company's global footprint will continue to be a hedge against weakness in any one geographic area.
Net income attributable to shareholders as $3.33 billion and $0.77 per share, up from $3.18 and $0.74 per share in the first quarter of 2024. Coca-Cola also offers a strong dividend yield of 2.9%.
2. American Express
Like Coca-Cola, American Express (NYSE: AXP) is a favored dividend stock held by Warren Buffett in Berkshire Hathaway's portfolio. Berkshire currently has a dominant 21.6% stake in American Express, holding 151.6 million shares.
American Express stands out from other credit card companies because it caters to a more affluent base, with a stronger emphasis on its gold and platinum cards, as well as corporate accounts. As an American Express customer, I can attest that the travel perks are extremely generous.
But American Express also is different in how it makes money. Not only does it issue cards like Visa and Mastercard, but it operates its own payment network that allows it to extend credit and earn income from the interest it charges on loans.
Revenue in the first quarter was $2.6 billion and $3.64 per share, up from $2.4 billion and $3.33 billion in the same quarter of 2024. American Express also has a dividend yield of 1%.
3. McDonald's
McDonald's (NYSE: MCD) is the dominant fast-food chain in the world, boasting more than 43,000 locations in over 100 countries. From its start as a single restaurant in California, McDonald's revolutionized the industry with its consistent standards and franchise model.
After a customer backlash last year over higher prices and inflation, McDonald's has been aggressive in pushing value menus and deals, including the return of its chicken snack wraps this spring. It's also driving traffic through its loyalty program, which includes 175 million customers who are active at least every 90 days within 60 global markets. McDonald's attributes $30 billion in overall sales to its loyalty membership program.
Global sales were down 0.1% in 2024, and that trend continued in the first quarter of 2025, as global sales dropped 0.1% from a year ago. In the U.S., sales were down 3.6% from a year ago, and earnings per share of $2.60 was down 2% from a year ago.
However, McDonald's still plans to open 2,200 new locations in 2025, which it says will boost its global sales growth by more than 2% this year. With its 2.4% dividend yield, McDonald's is a quality dividend stock for a long-term investor.
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American Express is an advertising partner of Motley Fool Money. Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Mastercard, and Visa. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.