The Best Dividend Stocks to Buy and Hold Forever | The Motley Fool

Wall Street often moves like a herd, with a big theme leading investors to rush in a single direction. Currently, one of the primary concerns is that consumers are becoming increasingly aware of costs, which is leading to a shift from higher-priced items to lower-cost ones. That has consumer staples stocks, some of which are seeing this dynamic, to sell off sectorwide. If you are a contrarian, now is a good time to look for buy-and-hold stocks in this historically reliable sector. A good trio to start with, if your preferred holding period is "forever," is Hormel ( HRL +1.90%), Procter & Gamble ( PG 1.23%), and Coca-Cola ( KO +0.18%). Here's what you need to know. Image source: Getty Images. Hormel is deeply out of favor Full disclosure, I recently sold Hormel to capture losses I had so I could offset gains elsewhere in my portfolio. I am actively counting the days until I'm outside the wash sale rule so I can buy Hormel back. That said, Hormel is not performing optimally right now, so there is a reason why the stock is in the doldrums. But there's an important nuance to the story. NYSE: HRL Key Data Points Even well-run businesses experience difficult times. In late November 2025, Hormel announced its annual dividend streak was entering its sixth decade. That's a clear sign that management and the board of directors think the future remains bright despite today's tough operating environment. Indeed, despite the headwinds, Hormel still owns a large collection of category-leading food brands . The board also recently brought in a new CEO to help get the business back on track. Given the dividend track record, it seems highly likely that Hormel will turn its business around before too long. However, if you buy the stock today, you'll get it while it is trading with a historically high 4.9% dividend yield, and key valuation metrics like price-to-sales and price-to-book value are below their five-year averages. Procter & Gamble is doing just fine One of the criticisms of Hormel is that its earnings have been weak, declining from $1.47 in fiscal 2024 to $0.87 in fiscal 2025. That's a real negative, even though it seems likely that the company will find its way back to growth again. Procter & Gamble, on the other hand, saw earnings increase 4% in fiscal 2025 and 3% in the first quarter of fiscal 2026. The consumer staples giant is doing just fine as a business, reliably selling its products even amid consumer spending worries. The truth is, you probably have a favorite toothpaste, deodorant, and toilet paper. Like most consumers, you won't switch unless absolutely necessary. That brand loyalty works in favor of Procter & Gamble even though Wall Street has pushed the price lower, along with the broader consumer staples sector . If you don't mind paying a fair price for a good business, you'll want to jump on Procter & Gamble today. NYSE: PG Key Data Points For starters, the...

Preview: ~500 words