Three Consumer Staples With a Lifetime Dividend Payback

Three dividend stocks - Colgate-Palmolive (CL), Procter & Gamble (PG), and Coca-Cola (KO) - have been selected for their durable businesses that can pay investors dividends for a lifetime. Each company has raised its dividend for at least 63 consecutive years, covering the payout with cash generated from daily sales of essential products.

Colgate-Palmolive controls over 40% of the global toothpaste market and owns a portfolio of personal and home care brands. The company generated $3.9 billion in free cash flow on a trailing 12-month basis, with its dividend payout ratio at 43%. Analysts expect Colgate's earnings to grow at an annualized rate of 5%, translating into similar growth in free cash flow and dividends.

Procter & Gamble owns some of the strongest consumer brands, including Tide, Pampers, Gillette, Crest, and Charmin. The company has faced sales pressure amid inflationary pressures but still managed to pay out 67% of its free cash flow as dividends over the past year. Analysts expect earnings to rise at an annualized rate of 5% in the long term.

Coca-Cola is another consumer staple with a wide lineup of affordable products that people buy every day. The company raised its dividend for the 64th consecutive year earlier this year and has a forward yield of 2.41%. Coca-Cola's global unit case volume rose 5% year over year in the second quarter, while organic revenue increased 6%.