The 2 Best Dividend Stocks to Buy Now and Hold Forever
2026-07-23 05:05
•John Ballard •The Motley Fool
••••••• •• Axe Capital view
Two Dividend Giants Worth Watching, Even From South Africa
Coca-Cola and Constellation Brands offer steady income and growth, but where’s the local angle?
Coca-Cola and Constellation Brands are classic dividend kings in the US beverage sector. Coca-Cola's 64 years of dividend increases and steady cash flow show remarkable resilience, while Constellation Brands’ attractive yield and double-digit dividend growth highlight operational strength. However, for South African investors, direct exposure is limited—neither is listed on the JSE. The rand’s recent stability against the dollar (USD/ZAR) can be a useful entry point for those considering offshore dividend plays. If the rand weakens, your returns could take a hit despite strong dividends abroad. On the local front, traditional large-cap dividend payers like MTN or Sasol might not offer the same income consistency but are exposed to rand moves in different ways. I’d keep an eye on USD/ZAR as a key risk factor here. this is just my opinion and not financial advice
Consider selective exposure to these US dividend stocks through offshore ETFs or ADRs when the rand is strong. Locally, wait and watch before overcommitting to high-yield JSE names that lack consistent dividend growth.
- USD/ZAR
- MTN
- Rand weakness eroding offshore dividend returns
- Global inflation or supply chain shocks hitting beverage sector profits
5/10
The article recommends Coca-Cola and Constellation Brands as top dividend stocks for long-term investors. Coca-Cola offers a 2.5% dividend yield with 64 consecutive years of dividend increases, supported by strong global distribution and AI-driven efficiency improvements. Constellation Brands provides a higher 3.1% yield with 12% annualized dividend growth over the past decade, benefiting from growing beer and wine sales and effective cost management.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: John Ballard
Categories: Rates, Equities, Earnings, Capital Returns, Technology, AI, Semiconductors
Tickers: KO, STZ
Sentiment: Positive - Strong competitive moat with global presence in 200+ countries, 64-year consecutive dividend increase streak, solid free cash flow generation ($12.5B annually), and AI implementation for revenue growth support long-term dividend sustainability and growth potential. Attractive 3.1% dividend yield with 12% annualized dividend growth over 10 years, well-covered by free cash flow ($1.8B generated vs. $712M paid out), recent positive earnings growth (7% YoY), and recovering sales momentum in beer and wine segments indicate strong dividend sustainability.
Keywords: dividend stocks, long-term investing, dividend yield, beverage industry, passive income, dividend growth
Insights:
- KO: Positive: Strong competitive moat with global presence in 200+ countries, 64-year consecutive dividend increase streak, solid free cash flow generation ($12.5B annually), and AI implementation for revenue growth support long-term dividend sustainability and growth potential.
- STZ: Positive: Attractive 3.1% dividend yield with 12% annualized dividend growth over 10 years, well-covered by free cash flow ($1.8B generated vs. $712M paid out), recent positive earnings growth (7% YoY), and recovering sales momentum in beer and wine segments indicate strong dividend sustainability.