These 2 Dividend Stocks Have Grown Dividends For 50 Consecutive Years. Can That Streak Continue? 

Dividend stocks with rich histories of rewarding investors with annual payout hikes can serve as a core foundation for any portfolio aiming to navigate a more volatile market environment. Though the worst of the Trump tariff fears may be left behind in the first half, as investors grow more hopeful over more trade clarity (it’ll be interesting to see what happens with the U.S. court’s attempt to block some Trump tariffs), I’d encourage investors to ensure their portfolio is well-equipped to ride out a prolonged period of heightened volatility.

If it’s not tariffs that cause the next correction and spike in choppiness, perhaps it’ll be earnings, inflation, deflation (if AI automation starts displacing entry-level workers in the coming 18 months), or another shock that’ll test the stomachs of investors.

In any case, don’t treat the most recent recovery and calming of the market waters as a sign that it’s time to get aggressive again, especially if you’re an older investor who’s closing in on a retirement date. In this piece, we’ll examine two proven dividend growers that also happen to be modestly priced, lowly correlated with the S&P 500, with generous upfront yields.

Coca-Cola

Coca-Cola (NYSE:KO) is arguably one of the least exciting Warren Buffett stocks to sit in the Berkshire Hathaway (NYSE:BRK-B) portfolio. While shares have been underperforming the S&P 500 in recent years, it’s quite interesting that Buffett and company haven’t pared their position. Indeed, Coke is one of the names that can really pull its weight once the market tides begin to turn lower.

During the spring Liberation Day sell-off, Coke shares really proved their worth as they held their own far better than your average stock. As the S&P 500 neared a bear market, KO stock lost just over 6% at its worst point. The lowly correlated consumer staple (0.47 beta) isn’t exactly a return enhancer, even when held over the long term, but it is a fantastic way to sail the seas bound to become more wavy.

With a 2.9%-yielding dividend that’s been increased every year for over 60 years, you’re getting a great deal of certainty with the name. Indeed, Coke may not be a growth engine, but you’re getting a nearly guaranteed dividend “raise” in the low-to-mid single digits every year.

Over time, these dividend raises will help keep dividend investors afloat, even as the tides of inflation shift. While the stretched valuation (28.7 times trailing price-to-earnings (P/E)) could limit upside from here, I continue to view Coke as a dividend grower with a streak that can very well extend several more decades. 

Indeed, AI is the ultimate disruptor. But it won’t change the business of fizzy sodas. People will keep drinking Coke once artificial general intelligence (AGI) is achieved, and beyond. That kind of stability, I believe, is worth a premium. That said, I think the real opportunity in Coke lies in a pullback that may occur if investors rotate from low-volatility stocks back into the growth and AI trade.

Johnson & Johnson

If sugary beverages aren’t your thing, perhaps Johnson & Johnson (NYSE:JNJ) is a better dividend grower to pick up while it’s still down and out. The dividend yield is currently at 3.41%, is richer, and the correlation to the S&P 500 is arguably lower, with a 0.41 beta, a hair less than KO stock. With a dividend raise streak also exceeding 60 years, income investors can also find comfort and stability in the name, provided they’re not startled by frequent corrections. 

Though JNJ stock may be perceived as less volatile with its low 0.41 beta, it’s worth noting that the past five years have been relatively turbulent, with around eight separate corrections suffered in the past five years. Indeed, with JNJ stock, you can expect more than just an annual correction, regardless of what the S&P 500 ends up doing.

With shares currently coming off another steep plunge, dip-buyers may have an opportunity to snag the biopharma play at a nice discount. There’s reason to be encouraged about the acquisition of neuroscience drug maker Caplyta, as well as management’s ability to navigate tariffs. At just 17.1 times trailing P/E, perhaps it’s a good time to buy the dip in a name whose dividend streak is not about to end anytime soon.

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