Long-Term Winners: Coca-Cola and Altria Show Why Holding on Can Pay Off

When investing in stocks, it's essential to have a long-term mindset. Famed investor Warren Buffett once said that you shouldn't even think about owning a stock for less than 10 minutes if you aren't prepared to hold onto it for at least a decade.

Coca-Cola (KO) and Altria (MO) are two companies that fit the bill, with time-tested businesses and attractive dividends. Coca-Cola has over 200 countries with distribution, using an asset-light business model that allows it to operate efficiently. The company sells syrups and concentrates to bottling partners, which then produce and distribute the final products.

Coca-Cola's model gives it higher margins than competitors like PepsiCo (PEP). In its most recent quarter, Coca-Cola's revenue was $10.7 billion less than PepsiCo's, but its net income was over $1.4 billion more. The company is a Dividend King with 64 consecutive years of dividend increases and a current 2.3% dividend yield.

Altria (MO) is another company worth holding for the long haul, with a 6% yield and a history of 57 consecutive years of dividend increases. Despite declining smoking rates, Altria's business brings in plenty of cash due to its pricing power. The tobacco industry is notoriously difficult to price out of, allowing Altria to offset declining volume with higher prices.