For many people, “investing in dividend stocks” doesn’t have the same ring as investing in “the next big thing.” But the former can often be just as profitable, if not more so. Even relatively small dividends compound and add up over the years.
There’s also peace of mind that comes with knowing you’ll be rewarded for owning a stock, regardless of how its price moves. That’s why you shouldn’t just look for high returns; you should invest in companies built to maintain their dividends over the long term. That’s how you really get the most value out of dividend stocks.
Where to invest $1,000 right now? Our team of analysts just revealed what they think they are 10 best stocks to buy right now when you join Stock Advisor. View stocks »
If you’re looking to add dividend stocks to your portfolio, each of the following three options is a choice you can confidently hold onto for the next 20 years.
Image source: Getty Images.
Chevron(NYSE: CVX) is the second largest US oil company, operating in three main segments of the value chain: upstream, midstream and downstream. Upstream involves exploration and extraction; midstream involves transportation, processing and storage; and downstream involves refining the products and selling them to consumers.
With a hand in all three segments, Chevron helps weather segment-specific downturns, price fluctuations and disruptions caused by geopolitical events. It’s not sure, but it’s better than relying on part of the oil business in many cases.
Over the past decade, Chevron has posted an average dividend yield of about 4.2%, more than 2.5 times the S&P 500 average in that interval. Offers high income and stability with 38 consecutive years of annual payout increases.
CVX dividend yield, given by YCharts.
The oil industry can be cyclical, but you don’t have to worry about Chevron’s dividend anytime soon. Its finances comfortably support dividends and it said it is committed to running a more efficient operation. This includes prioritizing profits over expansion and aiming to maximize shareholder returns.
If you’re investing for the long term, you usually can’t go wrong with a business with heavy cash flow and financial discipline.
Even if the name Procter & Gamble(NYSE:PG) doesn’t ring a bell for anyone, the products it holds probably will. In its portfolio, it has notable brands like Tide, Pampers, Old Spice, Febreze, Crest and dozens of others.
P&G is a baby for defensive and recession-proof stocks because it has products that sell no matter what. If it’s a recession and money is tight, people will cut back on a lot of things before they stop buying laundry detergent, disposable diapers, and toothpaste.
You won’t get explosive earnings or stock growth from P&G, but you will get reliability, both with its financials and its dividends. It’s a Dividend King, a company with at least 50 consecutive years of payout increases. In fact, he has 69 consecutive years under his belt. There are only five companies on the US stock exchange with a longer streak.
Procter & Gamble might be a “boring” stock, but these are often the ones you feel comfortable holding for decades. Flashy isn’t always durable.
Johnson & Johnson(NYSE: JNJ) is one of the largest healthcare companies in the world, but its business looks a lot different now than it did two and a half years ago. In August 2023, it spun off its consumer division (which included products such as Tylenol and Band-Aids) and focused on pharmaceuticals and medical devices.
Even with the restructuring, it hardly missed a beat. Revenue dropped in 2023 due to the spinoff, but it’s been a good two years since then. Revenue was $94.2 billion in 2025, up 6% from 2024 and up 17% from 2023. That’s modest growth, but that’s all you can ask for in a company as mature and large as Johnson & Johnson.
JNJ Revenue Data (Annual) by YCharts.
Similar to P&G, Johnson & Johnson has it working in its favor, except it’s not hygiene or cleaning products, it’s health care. Chronic diseases and age-related conditions are here to stay. They are unhappy, but they are also responsible for the longevity of the company.
The healthcare landscape will look different in 20 years, but you can bet Johnson & Johnson will have a hand in it. You can also bet that its dividend will continue to be strong. It is currently in its 63rd consecutive year of annual increases.
Before buying Chevron stock, consider the following:
The Motley Fool Stock Advisor the analyst team has just identified what they think they are 10 best stocks for investors to buy now…and Chevron was not one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you would have $462,174!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you would have $1,143,099!*
Now, it’s worth noting Stock advisor the total average return is 946% — a market-crushing outperformance compared to 196% for the S&P 500. Don’t miss the latest top 10 list, available with Stock advisorand join an investor community created by individual investors for individual investors.
See the 10 stocks »
*The Equity Advisor returns as of January 28, 2026.
Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
3 Dividend Stocks to Hold for the Next 20 Years was originally published by The Motley Fool
