PepsiCo (NYSE: PEP) is one of the most well-known and highly regarded dividend stocks out there, and for good reason. PepsiCo has a long track record of paying a dividend. It also has the financial strength to raise its dividend year after year. This makes PepsiCo an ideal dividend stock for investors to buy, particularly for retirees. Investors in or nearing retirement often desire income from their investments to help replace the income lost from no longer receiving a paycheck. That's where dividend stocks can play a huge role in a retirees' portfolio. Here are two reasons why PepsiCo definitely qualifies as a top dividend stock to buy right now.
Sometimes, a stock pays a high yield but doesn't grow its dividend. Other times, it's the reverse, whereby a stock has a high rate of dividend growth but a very low dividend yield. Stocks like these can leave an investor feeling as though there's a missing piece of the puzzle. PepsiCo, however, is an ideal mix of dividend yield and dividend growth. The stock currently yields 2.7%, which compares favorably with the current dividend yield of 1.88% for the S&P 500 Index. If that weren't enough, PepsiCo has a great track record of dividend growth. PepsiCo has increased its dividend for 42 years in a row. Over the past five years, PepsiCo has raised its dividend by 7% compounded annually. This means PepsiCo's dividend doubles every 10 years or so on average.
Source: Motley Fool
Related Articles:
- 10 Dividend Stocks For A Rainy Day
- 4 Higher Yielding Basic Materials Stocks With Growing Dividends
- 7 Dividend Growth Stocks That Could Make You Wealthy
- 12 High-Yield Managed Distribution Policy Funds
- The 2013 Elite Dividend Stocks List
Reasons PepsiCo Is A Top Dividend Stock To Buy
Posted by D4L | Tuesday, December 16, 2014 | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.