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3 Superb Dividend King Stocks for Buy-and-Hold Investors

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3 Superb Dividend King Stocks for Buy-and-Hold Investors


Coca-Cola (NYSE: KO), PepsiCo (NASDAQ: PEP), and Procter & Gamble (NYSE: PG) are three well-known consumer-facing companies. They are also Dividend Kings, meaning they have paid and raised their dividends for at least 50 consecutive years.

All three companies reported earnings within the last month. In those reports and earnings calls, they discussed a similar challenge that has been affecting their sales.

Here’s what you need to know about the state of each business and what makes all three companies excellent dividend stocks to buy and hold now.

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Coca-Cola and PepsiCo have various nonalcoholic beverage brands. PepsiCo is more diversified than Coke since it owns Frito-Lay and Quaker Oats and isn’t solely focused on beverages. Meanwhile, P&G owns dozens of brands in the beauty, grooming, healthcare, fabric and home care, and other categories.

All three companies have global operations and heavily depend on international sales to drive growth. The global footprint is great for tapping into emerging markets and achieving diversification. But now, weak demand (especially in China) and unfavorable currency conversion rates have affected margins.

The biggest challenge for all three companies has been a decline in sales volumes. Sometimes, volume declines for one business can be a sign that it lacks pricing power or is losing market share to the competition. But when it is a widespread problem, like we see today, it usually means that consumer spending is in a cyclical downturn.

For the nine months ended Sept. 27, Coca-Cola reported just a 1% increase in unit case volume. In PepsiCo’s third-quarter report, it posted a 2% year-to-date decline in convenience-foods volume and a 1% decrease in beverages volume.

In P&G’s recent quarter, which was first-quarter fiscal year 2025, the company reported flat overall volume and a 1% increase in organic volumes. For P&G’s fiscal year, ended June 30, it reported flat overall volumes, including volume declines in two key segments: baby, feminine & family care and healthcare.

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Despite weak volumes for Coca-Cola, PepsiCo, and P&G, all three companies are still growing overall sales and earnings thanks to efficiency improvements, cost management, and pricing power. But prices can only be raised so much before consumers push back.

PepsiCo, in particular, is feeling the effects of taking price increases too far. As mentioned, it is seeing the worst volume declines. So to drum up demand, it has decided not to cut prices, but instead to include more product in packages on a case-by-case basis, such as adding 20% more product in Tostitos and Ruffles bags and bonus bags in variety packs.



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