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With enough time and persistence, anyone can build a stock portfolio that pays thousands of dollars in dividend income every year. Dividend investing may not be the most efficient way to build wealth in the stock market, but there's no other style of investing that can compete with the warm feeling of having cash automatically deposited into your account every year from some of the strongest companies in the world.
Here are two timeless consumer brands that could pay you for the rest of your life.
1. Nike
Nike (NYSE: NKE) has paid a growing dividend since 2004. With the stock recently down 62% from its previous peak, now is your chance to get this top consumer brand at its highest dividend yield in 16 years.
The stock has fallen over weak sales performance. Revenue declined by 9% year over year in the first half of fiscal 2025 (which ends in May). Analysts expect earnings to fall 43% for the full year, according to Yahoo! Finance. But Nike's dividend is safe, as it distributed 37% of trailing-12-month earnings to shareholders, providing wiggle room in a down year for earnings.
The dividend has increased at an annualized rate of 11% over the last 10 years. The quarterly payment is currently $0.40, bringing its forward yield to an attractive 2.41%.
The company has a durably strong brand that can still win and deliver more dividend increases over the long term. This was highlighted last quarter by strong growth in running shoes, such as the Vomero 5, which doubled its revenue last quarter.
The success of Vomero 5 and other new releases demonstrates management's strategy to return to growth. It is fine-tuning its approach to lifestyle products like the Air Force 1, which contributes to the weak sales trends, and investing in new performance franchises.
Investors shouldn't buy the stock expecting a quick rebound. It just hit new lows following the company's fiscal third-quarter report. But if you're a dividend investor, now is the time to start building a position, since you'll get paid while you wait for the business to improve.
Nike benefits from strong brand recognition. And it has the resources and marketing capabilities to climb back to the top.
2. Coca-Cola
Coca-Cola (NYSE: KO) is a simple and highly profitable business. With more than 2.2 billion servings of its beverage products consumed annually, it generated almost $11 billion in profit last year on $47 billion of revenue. Strong brand power allows the company to price its products to earn healthy margins, which has led to 63 consecutive years of dividend increases.