Want secure dividend income into 2025 and beyond? Here are 2 stocks to buy.

Investing in companies that have paid dividends for decades is the best place to start looking for secure passive income. These are companies that have been tested over several economic cycles but have continued to deliver returns for shareholders.

Here are two dividend stocks that can pay you extra money for the rest of your life.

1. Coca-Cola

Coca cola (NYSE: KO) it is one of the safest stocks to buy if you are looking for a balance between high yield and growth. The company benefits from a recognized brand, high margins and a worldwide distribution network. This allowed the company to increase its dividend every year for 62 years.

It’s a simple business. The company maintains high annual sales volumes by marketing through a large portfolio of beverages. In addition to the Coca-Cola trademark, it owns water, energy, coffee, tea and juice brands. The breadth of selection allows the company to meet demand for almost any type of non-alcoholic beverage. Over the past year, the company generated $10 billion in profit on $46 billion in revenue.

Management continues to squeeze every last drop of profit out of operations. It has already earned nearly $3 billion in revenue from adjustments to its bottling network and equity investments. The company is testing the use of artificial intelligence (AI) to provide suggestions to retailers to improve sales volumes and revenue. Management believes they are only scratching the surface with this technology, which could lead to improved financial results over time.

Coca-Cola has remained very resilient over the past few years in the face of macroeconomic headwinds. The company currently pays out two-thirds of annual earnings per share (EPS), bringing the forward dividend yield to 2.73% — well above the S&P 500 average of 1.30%.

Shares offer solid value that should pay shareholders passive income for life.

2. Home Depot

Home Depot (NYSE: HD) is another relatively safe dividend stock that has delivered solid returns for years. It is the largest home improvement retailer that has led the way for 37 years of consistent dividend payments, and the growth opportunities that still lie in a fragmented industry should lead to many years of growth. of dividends.

The business is struggling against higher interest rates that have pressured demand for housing projects. Comparable store sales, which measure the sales performance of stores open at least a year, fell last quarter, and the company expects full-year comp sales to fall 3% to 4% year over year. However, stocks are close to hitting new highs as investors appreciate the impact of lower interest rates, which will make financing projects more affordable. Meanwhile, Home Depot still has a substantial growth runway ahead of it.

The story continues

There is more than $35 trillion in homeowner equity in the U.S., and Home Depot estimates the addressable market at $1 trillion. After four decades of growth, the business owns a small portion of that opportunity, with $152 billion in trailing revenues.

While the company’s earnings are not immune to weakness in the housing market, Home Depot is an attractive investment because it has a relatively low market share in a market that should continue to grow over the long term.

In addition, the stock offers a high yield. Home Depot currently pays 60% of expected full-year earnings, bringing the forward dividend yield to 2.20%.

Home Depot has a resilient business that has proven it can withstand the ups and downs of the housing market. Stocks should pay dividends for decades to come.

Should you invest $1,000 in Coca-Cola right now?

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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool has a disclosure policy.

Want secure dividend income into 2025 and beyond? Here are 2 stocks to buy. was originally published by The Motley Fool