7 Dividend Stocks to Buy and Hold Forever

As the old saying goes, past performance is never an indicator of future returns. As such, it's up to investors to constantly re-evaluate their holdings and make sure they own stocks that are relevant in the current market environment – and more importantly, are set up for success in the future, too. Of course, just because some former leaders have fallen away doesn't mean that every stock is eventually doomed for failure. The following seven companies all have strong current operations but also exhibit impressive track records as well as bright outlooks for the years ahead. There are no sure things on Wall Street, but these seven dividend-paying large-cap stocks are the kinds of companies you should consider sticking with if you're looking for long-term investments to buy and hold forever.

AbbVie is a recession-proof health care company with excellent margins and a hefty free cash flow to finance ongoing operations. Its drug research pipeline spans oncology, immunology, neuroscience and other specialized areas with dozens of trials currently in the works. That will ensure a bright future to build on current success from blockbusters such as its immunology medications Skyrizi and Rinvoq. These drugs are great examples of how Abbvie operates, as they have stepped up to replace revenue that's waning from its previous winner in arthritis drug Humira, which is coming off patent protection. With an amazing track record of research on top of a more than 250% increase in its dividend over the last decade, ABBV is a stock you can buy and hold forever with confidence.

Sector: Health care

Dividend yield: 3.7%

Telecom giant AT&T is a stock with staying power, and it's not just because of its entrenched wireless network. The firm recently streamlined operations by cutting out its tangential media operations, using cash to pay down debt and focus on the future. That's a great sign as we enter the age of 5G and heavy demands on telecom infrastructure that will undeniably require strong investment to keep customers happy. And as AT&T maintains its world class service in the years ahead, it's also maintaining an enviable record as a dividend stock with 36 consecutive years of increases in payouts for shareholders. That gives you ample incentive to buy and hold.

Sector: Telecom

Dividend yield: 6%

Blackstone is one of the biggest investment firms in the world, operating in many ways like a private equity fund. In addition to providing asset management services for clients, where it simply manages a portfolio of stocks and bonds for high net-worth individuals, BX also invests capital in real estate, credit-focused opportunities and other hedge-fund like strategies. There's almost no corner of the financial sector that this $100 billion firm doesn't touch. Dividends are inconsistent, since profits ebb and flow based on performance, but they are always substantial; the last four payouts annualize to a yield that is almost four times that of the typical S&P 500 stock.

Sector: Financials

Dividend yield: 6.6%

Everyone knows consumer powerhouse Coca-Cola, and for good reason. It has unrivaled global scale, with operations in more than 200 countries. You may think that soft drinks are not quite the consumer staple they once were, but the fact is that KO has been diversifying heavily for many years into brands such as Vitaminwater, Fuze teas and Powerade energy drinks. After all, Coke has pretty much saturated the market with its fizzy namesake, so it has long been necessary for management to think outside this core brand to tap into growth. That growth has certainly been there, too, with projections of 10% revenue expansion in fiscal 2022 to prove it can power forward even in a challenging year for consumers. The company approved its 60th consecutive annual dividend increase, too, as proof it will keep sharing its success with stockholders.

Sector: Consumer staples

Dividend yield: 2.8%

Consumers can be fickle, especially over the long term, but Costco has defied the general cyclicality of retailers by building up an incredibly loyal and lucrative customer base. The cult of Kirkland products is real, with blogs and social media accounts dedicated to the best products under this Costco store brand, and the retailer regularly ranks near the top in customer satisfaction. From a more material perspective, COST boasted more than $1 billion in membership fees in its fiscal first quarter that ended in November. When you can rake in a billion dollars every 90 days without selling a penny of product, you're definitely on to something! With a strong brand, thanks to high-quality discretionary items and bargain prices for household staples with strong baseline demand, this is one retailer that has staying power for the long haul – even in the age of e-commerce and changing tastes.

Sector: Retail

Dividend: 0.8%

This is a megacap stock that should be a familiar favorite of long-term investors. It's one of only two S&P 500 companies – tech giant Microsoft Corp. (MSFT) is the other – with a perfect AAA credit rating. It's also among the 10 largest U.S. companies by market cap, boasts $25 billion in cash and tallies more than $20 billion in annual operating cash flow. What's not to like about all that? And beyond its growth-oriented medical products and pharma operations, Johnson & Johnson has a tremendous portfolio of health care products to fall back on, such as Tylenol and its eponymous baby care products. Throw in the fact that health care generally tends to have more stable revenue trends than other sectors, and that JNJ has roughly six decades of consecutive dividend increases under its belt, and it's easy to see why this is a go-to investment for folks looking for stocks to buy and hold forever.

Sector: Health care

Dividend yield: 2.6%

Supersized utility stock NextEra doesn't offer the big dividends of other picks in its sector, but it has unrivaled scale with a $170 billion market value and almost 6 million customer accounts across the U.S. It's also worth noting that unlike some smaller peers stuck with aging infrastructure, NextEra is investing a ton of cash in its grid along with renewable energy and storage capacity. That will ensure it remains dominant but also in step with marketplace trends for many years to come. And as for that aforementioned dividend, it may not be huge now, but NextEra offered a 10% increase in payouts earlier this year to notch 25 consecutive years of annual dividend growth. That bodes well for its future income potential.

Sector: Utilities

Dividend yield: 2%

• Abbvie Inc. (ABBV)
• AT&T Inc. (T)
• Blackstone Inc. (BX)
• The Coca-Cola Co. (KO)
• Costco Wholesale Corp. (COST)
• Johnson & Johnson (JNJ)
• NextEra Energy Inc. (NEE)