The attraction of dividend shares is fairly easy: They pay you whilst you sleep, and the higher ones have a tendency to supply a little bit extra stability than the broader market, particularly in consumer goods. If you are trying to construct part of your portfolio which you can principally go away alone for the following 5 years, these shares are place to look.
Two names stand out to me proper now. Each is taking steps immediately that would assist it proceed returning money to shareholders whereas nonetheless rising its industry.
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1. Church & Dwight is boring, however constant
Church & Dwight (NYSE: CHD) appears boring at first glance, however that’s a part of the attraction. The firm owns a portfolio of sensible manufacturers throughout family, private care, and specialty merchandise, and its latest updates present a industry leaning into quantity‑pushed development quite than simply worth hikes. In the primary quarter of 2026, natural gross sales grew 5%, with quantity up greater than 5% throughout all divisions, though reported web gross sales have been mainly flat because of earlier portfolio clear‑up strikes. Management expects natural gross sales development of 4% to five% for the complete yr and roughly $1.175 billion of money from operations, which is a strong base for ongoing dividends and bolt‑on acquisitions.
The second quarter continued that sample, with natural gross sales up 5.8% and development in each home and global segments, supported by manufacturers like Therabreath, Hero, and Batiste, and newer additions reminiscent of Touchland. An organization that may keep mid‑single‑digit natural development whereas increasing gross margins has room to boost its dividend and spend money on further area of interest manufacturers.
This is the place Church & Dwight will get worthwhile. It steadily grows gross sales and retains buying smaller companies that may add to that development over time. This mixture of constant development and acquisitions offers Church & Dwight the form of regular compounder profile that may make sense as a buy-and-hold dividend inventory over the following 5 years.
2. Costco is a membership beast
Costco Wholesale (NASDAQ: COST) sits on the center of retail and membership economics, which is a robust place to be for dividend traders. Membership and subscription-based fashions are the most effective companies, for my part, and it appears to me that Costco is not slowing down in any respect.
In April 2026, the corporate’s board accepted a quarterly dividend improve from $1.30 to $1.47 per share, or $5.88 on an annualized foundation, payable in mid‑May to shareholders of document initially of the month. That form of step‑up is feasible as a result of Costco continues to submit sturdy gross sales and money technology.
The firm now operates greater than 930 warehouses worldwide, and its membership industry has continued to churn properly. But be cautious; the corporate will quickly report earnings, and Bank of America expects greater transportation prices and investments in low costs to place some strain on margins, in keeping with reporting from The Street.
The larger questions heading into earnings, in keeping with Bank of America, are whether or not membership development can stay round 4% to five% and whether or not Costco will use its rising money steadiness for one more particular dividend.
Five‑yr logic
None of those names is danger‑free. Church & Dwight nonetheless has to combine its acquisitions and preserve its manufacturers related, and Costco is determined by sustaining excessive membership renewal charges, and managing labor and logistics prices.
But if I zoom out over 5 years, this duo checks the bins I care about for purchase‑and‑maintain dividend shares: There is at all times demand for his or her on a regular basis merchandise, and the businesses are making clear, present strikes or acquisitions to strengthen margins. Owning these two offers you a mix of staples and retail that may work by a variety of curiosity‑fee and financial eventualities whereas sending a rising stream of earnings again to your account.
Should you purchase inventory in Costco Wholesale proper now?
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Bank of America is an promoting associate of Motley Fool Money. Micah Zimmerman has no place in any of the shares talked about. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.
