4 Dividend Kings Retirees Can Buy and Hold Forever: Safe Income for the Next 60 Years
Four Dividend Kings have raised their payouts for decades, but a closer look at their cash flows reveals one payout hanging by a thread while another faces a looming tax battle that could shake retiree income.
Retirees need income that comes every quarter in good times and bad ones. Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction), Procter & Gamble (NYSE:PG), Coca-Cola (NYSE:KO), and PepsiCo (NASDAQ:PEP) sell medicines, detergent, soda, and snacks that people keep buying in a recession. All four are Dividend Kings. I checked whether their cash flow still supports that title.
Four Dividend Kings With Decades of Raises
| Stock | Annual Dividend | Yield | Streak | Latest Raise | 5-Year Growth Rate |
|---|---|---|---|---|---|
| JNJ | $5.36 | 2.09% | 64 years | 3.1% | 4.8% |
| PG | $4.354 | 3.00% | 70 years | 3.0% | 4.6% |
| KO | $2.12 | 2.38% | 60+ years | 3.9% | 4.8% |
| PEP | $5.92 | 4.44% | 54 years | 4% | 6.6% |
The growth rates compare each company’s 2021 quarterly payment with its 2026 payment. All four show no cut in the quarterly records available back to 1999.
PepsiCo’s Payout Ratio Is Near 100% While the Other Three Have Room
| Stock | Earnings Payout | FCF Payout | Assessment |
|---|---|---|---|
| JNJ | 49.6% | 62.9% | Healthy |
| PG | 63.2% | 63.1% | Healthy |
| KO | 63.7% | 73.6% | High |
| PEP | 92.1% | 99.6% | About |
J&J paid $12.381 billion in dividends in 2025 against $19.7 billion of free cash flow. Its oncology launches are making up for lost Stelara sales. Coca-Cola’s FCF number uses its 2026 guidance of $12.4 billion. PepsiCo paid $7.638 billion in dividends in 2025, nearly all of its free cash flow, while its North American snack business shrank.
Balance Sheets Hold Firm, but PepsiCo Carries the Most Debt
| Stock | Cash | Leverage | Interest Coverage |
|---|---|---|---|
| JNJ | $21B | $28B net debt | Not available |
| PG | $9.94B | Not available | Not available |
| KO | $12.91B | 1.4x net debt/EBITDA | 8.32x |
| PEP | $10.25B | 2.31x net debt/EBITDA | 12.03x |
Executives Make Cash Returns a Priority
J&J’s CFO said the company returns capital “primarily through our dividend.” P&G’s CEO pointed to its ability to “return high levels of cash to shareowners despite a very challenging geopolitical and economic environment.” Coca-Cola’s CFO said leverage sits “below our target range of 2 to 2.5 times.” PepsiCo’s CEO confirmed “our 54th consecutive annual increase.” That is reassuring, though J&J also noted that one metric “may be towards the low end” of guidance.
Three Very Safe Payouts and One to Monitor
Dividend Safety Ratings:
- Very Safe: J&J and P&G
- Safe: Coca-Cola
- Moderate Risk: PepsiCo
This group’s income looks well supported if J&J hits its free cash flow target of nearly $21 billion and P&G meets its core EPS guidance of $6.89 to $7.11. PepsiCo’s dividend faces pressure if its North American business doesn’t recover, as it has almost no cushion. Coca-Cola’s IRS tax dispute is also worth watching. Overall, J&J and P&G show the strongest dividend coverage in this group, and Coca-Cola is close behind. (We ranked ten Dividend Kings by valuation in a free report you can grab here.)
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Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad, diverse career, including a stint as creative services director at an NBC affiliate in Austin, Texas, gives him unique insight into the financial industry.
Lee Jackson's journey in the financial industry spans more than 30 years, including nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career spanned pivotal sell-side Wall Street events, from the dot-com rise and bubble to the Long-Term Capital Management debacle, 9/11, and the Great Recession of 2008. This reflects his resilience and adaptability amid market volatility.
Lee Jackson’s practical financial industry experience, gained through a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing across various platforms. This unique combination allows him to shed light on the intricacies of Wall Street in a way only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.
Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.
