Very often I get a request that someone wants to build passive income and would like to achieve it through dividend stocks. Usually the requirement is then a high dividend, zero risk and still a rising share price.

I can't perform miracles and therefore I don't give advice. However, since such a request is really common, I decided to do an article on "proven classics" that no dividend investor will make a mistake. These are some of the best quality stocks, but no one will ever guarantee that they will really just keep rising and that there won't be a breakout, crisis or just a downturn. Please keep that in mind.

This selection will not serve as an analysis of individual companies or a price estimate. It will be about principle and why these companies are so popular with investors. Here we go!

Verizon Communications $VZ

A large U.S. telecommunications company that provides reliable dividend payouts, currently yielding around 6.7%. Verizon's dividends have increased for 17 years in a row. It's comparable to AT&T, but its dividend has a slightly higher yield. Plus, its main competitor hasn't been showing entirely convincing results lately, making Verizon increasingly popular among investors.

Verizon has been generating stable and growing cash flow for a long time, which allows it to increase its dividend regularly. The company has been increasing dividends for 19 consecutive years and is therefore considered a prestigious dividend aristocrat. This gains investor confidence in its long-term high dividend payout.

Verizon has a very strong market position in the telecommunications sector. It is the second largest mobile operator in the US with a stable customer base. This ensures resilient cash flow and profitability that are not as dependent on conjoint fluctuations. This gives investors exposure to a defensive and regulated business.

Verizon's dividends have a high and stable yield of around 4-7%, which saturates the needs of many investors. The stock price has also been on a steady trend and corresponds with dividend growth. This supports its attractiveness for long-term holding. Verizon is actively investing in future technologies to ensure its competitiveness. For example, in the expansion of 5G networks. This builds a solid platform for future revenue and cash flow growth.

Johnson & Johnson $JNJ

A stable pharmaceutical company that has paid high dividends for a long time and has increased its dividend for 61 consecutive years. The dividend yield tends to be around 2-3%. It is considered an even more stable choice.

Johnson & Johnson has a long history of generating very stable and growing earnings from its business, allowing for regular and sustained dividend increases. The company has increased dividends every year for 61 consecutive years, making J&J one of the most successful dividend aristocrats in the market.

J&J has a very strong market position in an industry that is extremely stable. It is one of the world's largest manufacturers of consumer goods, medical and pharmaceutical products. It generates resilient and predictable revenue and profit streams, completely independent of turbulent market events. This gives investors exposure to a defensive business with minimal risk.

J&J also has significant financial reserves and debt capacity, which increases the company's resilience to external shocks and strengthens its ability to continue to deliver stable dividends to shareholders. The company regularly invests in research and development of new drugs to maintain competitiveness and expand its platform for further growth.

For the above reasons, Johnson & Johnson is considered the most stable company in its industry. Its stock provides investors with a regular, stable and attractive dividend yield, which explains the popularity of this company among dividend investors.

Procter & Gamble $PG

An American conglomerate operating in the consumer goods sector that has been increasing its dividend for a long time and provides a high annual dividend.

Procter & Gamble is one of the largest companies in the world operating in the stable consumer goods sector. It generates resilient earnings over the long term, independent of market fluctuations, allowing it to increase its dividend regularly. The company has increased dividends annually for 67 consecutive years Dividends have a stable yield of around 3% and rise in tandem with the share price, providing a solid total return when invested for the long term.

P&G also has a very strong financial position with ample liquidity, low debt and high profitability. This increases its resilience to external shocks and allows for further dividend growth. Active innovation helps maintain its competitive advantage and dominant position as a market leader. It invests in developing products and technologies that generate long-term benefits.

Institutional investors support long-term demand for P&G shares, which stabilizes the price at a solid level. Even with strong market growth, P&G shares have the potential to appreciate reasonably without having to react appreciably to conjunctural fluctuations. This is appreciated by investors seeking stable returns and investment appreciation even in an environment of high volatility.

Coca-Cola $KO

Coca Cola is one of the world's best-known brands and has long been one of the most stable companies in its sector. It operates in the fast-moving consumer goods sector, which generates resilient returns independent of market fluctuations. This has allowed it to increase dividends regularly over many years. The company has increased dividends annually for 36 consecutive years.

This company doesn't just keep paying and thriving. Indeed, like all the others mentioned.

Conclusion

Coca Cola's strong position in a stable industry, long history of dividend and share price increases, financial stability, competitive advantages, and the favor of institutional investors make it one of the most stable and attractive companies for investors. As a result, its shares are among the preferred choices of dividend and conservative investors.

Procter & Gamble, Coca Cola, Johnson & Johnson and Verizon Communications have several characteristics in common for investors.

The common heritage of these companies lies in their market dominance and strong positions in stable industries. All operate in sectors with low competition, regulated markets and resilient earnings. These are companies in consumer goods, beverages, pharmaceuticals or telecommunications, where the risk of major fluctuations is low. This generates stable and predictable cash flows that drive regular dividends and share growth.

Another common feature is a long history of dividend increases and share price growth. All of these companies have been leaders in their industry for decades and have been able to subtly but continuously increase their dividends and share prices over time. This provides investors with stable dividend yields and overall appreciation, while keeping volatility low. This makes it one of the most stable titles on the market.

Stable positions, rising dividends and solid yields, together with institutional investors who have invested in these companies for a long time, explain their popularity and the possibility of long-term share price growth without having to react significantly to short-term market fluctuations. Investors particularly appreciate the safe and unchanging environment of these defensive companies.

Disclaimer: This is in no way an investment recommendation. This is purely my summary and analysis based on data from the internet and other sources. Investing in the financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.