The 2 Best Dividend Stocks to Buy Now and Hold Forever

By Lawrence Rothman, CFA – Mar 18, 2026 at 3:25AM ESTKey PointsColgate-Palmolive is a Dividend King.Colgate-Palmolive produces a lot of cash flow from selling everyday products.American States Water operates a utility that is a regulated monopoly.The market has been volatile since the start of the U.S.-Israel and Iran war. This year through March 13, the S&P 500 index has dropped 3.1%. That may have some people on edge. But investing in consistent dividend-paying stocks over the long haul is a good way to counteract the market's ups and downs. Colgate-Palmolive (CL 0.51%) and American States Water (AWR 1.35%) top my list. In fact, they have each raised dividends annually for more than 50 years. Those that have built this impressive track record belong to a special group of companies called Dividend Kings. Looking ahead, these two kings are the quintessential long-term equity holdings for dividend-seeking investors. Image source: Getty Images. 1. Colgate-Palmolive Colgate-Palmolive has paid a dividend since 1895. Even better, the company recently announced it would raise the quarterly payout by a penny to $0.53, making it 63 straight years with an increase. Colgate-Palmolive generates most of its sales from its oral, personal, and home care division. The company sells everyday items like toothbrushes, toothpaste, soap, deodorant, dishwashing detergents, and household cleaners. It has a stable of popular brands, including Colgate, Irish Spring, Palmolive, Speed Stick, and Ajax, that command high market shares. This kind of dependable business produces plenty of free cash flow (FCF), or operating cash flow minus capital expenditures, allowing the company to easily afford the dividend payouts. Colgate-Palmolive generated FCF of $3.6 billion. That gave the company plenty of cushion to pay the $1.8 billion in dividends. ExpandNYSE: CLColgate-PalmoliveToday's Change(-0.51%) $-0.46Current Price$89.84Key Data PointsMarket Cap$72BDay's Range$89.66 - $91.4852wk Range$74.55 - $99.33Volume152KAvg Vol6.8MGross Margin60.11%Dividend Yield2.31% At the new dividend rate, Colgate-Palmolive's stock has a 2.4% dividend yield. That's about double the S&P 500's 1.2% yield. 2.

American States Water American States Water has paid a dividend since 1931. It's also built an impressive history of raising payouts annually, doing so for 71 straight years. Last July, the board of directors announced that it was increasing the quarterly payout by 8.3% to $0.504 a share. Given its history, investors can reasonably expect the company to announce another dividend increase soon. The company operates a utility, one of the most reliable businesses. That's because, as a regulated utility, it has a monopoly over water and electricity in California and certain U.S. military bases. ExpandNYSE: AWRAmerican States WaterToday's Change(-1.35%) $-1.02Current Price$74.28Key Data PointsMarket Cap$2.9BDay's Range$74.15 - $75.4652wk Range$69.45 - $82.94Volume6.8KAvg Vol246KGross Margin50.77%Dividend Yield2.66% With stable results, earnings easily covered American States Water's dividends. It has a payout ratio, or dividends by profit, of 58%. The company's stock has a 2.7% dividend yield, about 1.5 percentage points more than the overall market, as measured by the S&P 500.Read NextFeb 3, 2026 •By William DahlThis Once-Sleepy Consumer Staples Stock Is Beating the S&P 500 by 8-to-1 in 2026: Should You Buy?Dec 17, 2025 •By Parkev Tatevosian, CFA3 Undervalued Dividend Stocks to Generate Passive Income as the Federal Reserve Cuts Interest RatesDec 11, 2025 •By Todd ShriberColgate-Palmolive Stock Should Do Better in 2026, but That's Not Saying MuchNov 12, 2025 •By William DahlDown 15% Year to Date, Is This Dividend King a Buy?Sep 27, 2025 •By Josh Kohn-LindquistA Once-in-a-Decade Opportunity: 1 Magnificent S&P 500 Dividend King Down 26% to Buy Right NowSep 18, 2025 •By Parkev Tatevosian, CFA3 Ridiculously Cheap Dividend Stocks Passive Income Investors Can Buy Now in 2025!About the AuthorLawrence Rothman, CFA, has been a contributing Motley Fool stock market analyst since 2019, covering consumer goods and retail stocks. Previously, Lawrence worked on Wall Street and at independent research firms before devoting his attention to finding successful long-term investments for individual investors.TMFLarryrothmanStocks MentionedColgate-PalmoliveNYSE: CL$89.84(-0.51%)-$0.46American States WaterNYSE: AWR$74.28(-1.35%)-$1.02*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.