Baby Boomers' Top Dividend Picks: KO, JNJ, PEP

Coca-Cola (KO), Johnson & Johnson (JNJ), and PepsiCo (PEP) are three dividend stocks that have consistently raised their payouts over the past half century, making them attractive to baby boomers seeking reliable income. The companies' ability to increase dividends during every recession is a key factor in their appeal.

Coca-Cola's dividend has been raised for 64 years, with the most recent quarterly declaration being $0.53 per share, up from $0.51 in 2025. Johnson & Johnson also boasts an impressive 64-year streak of consecutive dividend increases, while PepsiCo has increased its payout for 54 years.

The companies' strong balance sheets and free cash flow are key factors in their ability to maintain their dividends. Coca-Cola's operating margin stands at 28.71%, while Johnson & Johnson's is 27.34%. PepsiCo's interest coverage ratio is a healthy 12.03x, and its net debt/EBITDA ratio is 2.31.

The companies' prospects look promising, with Coca-Cola reporting a 5% global volume increase in Q2 2026, while Johnson & Johnson's oncology business has seen significant growth. However, there are risks to consider, including pending IRS tax litigation and biosimilar competition for some of their products.