Markets COST

2 Soaring Stocks to Hold for the Next 7 Years

Key Points

  • Coca-Cola is using its powerful brand and global reach to keep growing as consumer tastes change.

  • Costco’s warehouse expansion gives it more room to grow sales and memberships for years.

  • Both stocks offer long-term growth, with dividends adding another way for shareholders to benefit.

  • 10 stocks we like better than Costco Wholesale ›

If you are looking for soaring consumer stocks you can actually hold, forget about, and think about in seven years, it helps to start with names that already look too obvious and then ask what most people are missing. Two that fit that mold for me right now are The Coca‑Cola Company (NYSE: KO) and Costco Wholesale (NASDAQ: COST). Both companies and their stocks are already widely followed, but there are still some lesser-known angles that make them worth watching and help explain why investors remain interested.

A row of Coca-Cola bottles.

Image source: Getty Images.

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Coca‑Cola: branding to combat health traffic

You might look at Coca‑Cola and think it is a slow, sugary beverage company that will get chipped away by health trends and new brands. The numbers from this year tell a different story. In the second quarter of 2026, Coca‑Cola reported global unit case volume growth of 5%, net revenue up 7%, and operating income up 9%, then raised full‑year guidance. This shows that the business is not stuck in neutral.

I'm not much of a branding enthusiast. I think brands like Coca-Cola already have pricing power without needing to change much, but in July, Coca‑Cola rolled out a new global visual identity system across more than 200 markets, designed to make every can, cooler, and digital ad unmistakably Coca-Cola. At the same time, it is committing about $10 billion to U.S. production and distribution infrastructure through 2030. In the company's own words, they are building out the infrastructure behind its systems through a new "Brand Center" and technology-powered Design Intelligence tools that provide its marketing and agency network with shared resources for managing and enforcing Coca-Cola's visual identity at scale.

To me, that's a forward-thinking move. Coca‑Cola is tightening its presence everywhere while deepening the physical network that gets drinks into coolers and restaurants. Over seven years, that kind of brand and logistics work is what keeps the company relevant even as tastes evolve. Add the company's dividends to this, and it is a safe stock that will continue to soar.

Costco: Low yield, high conviction

You might glance at Costco's dividend yield and assume it is not worth holding for income, especially after a strong run over the last couple of years. The way management is treating cash and growth makes me see it differently. For the June 2026 retail month, Costco reported net sales of $29.24 billion, up 10.6% from a year earlier.

At the same time, Costco continues to open and remodel warehouses, investing roughly $6.5 billion a year to expand capacity and improve the member experience, according to company management. The warehouse additions get plenty of attention, but I don't think investors fully appreciate how much revenue and membership growth each new location can add to the business, giving Costco another runway for growth as it expands its footprint. The regular dividend, recently raised to $1.47 per share, is only part of the story, as Costco has also used special dividends to return excess cash to shareholders while continuing to prioritize investments in the warehouse model.

So while you may think Costco is "too expensive with a tiny yield," I think of it as a membership machine that keeps gaining scale, with a management team that treats growth and cash returns as two sides of the same coin. If you own it for seven years, you are betting that more households will choose Costco as their default place to stretch budgets and that you will share in both the earnings and the occasional big payout when cash piles up.

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Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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