3 dividend-paying stocks you can keep safe for decades
Why care about dividends? Well, you don’t necessarily have to. There are many different styles of investing, and dividends aren’t on everyone’s list. But many investors look to dividends as income, and the higher the yield, the best. This is especially true for retirement accounts, as dividends can pile up and be a real source of income for people who are not working.
There are also several approaches to dividend investing, such as higher yields or gains in stocks. Kimberly clark (NYSE: KMB), PepsiCo (NASDAQ: PEP), and Starbucks (NASDAQ: SBUX) are all companies that offer a stable and growing dividend that pays more than the S&P 500 average.
More than toilet paper
If you were one of the many people who stocked up on toilet paper at the start of the pandemic, you may have bought Scott or Cottonelle, owned by Kimberly Clark. The company has many brands in what it calls the facial tissue segment, such as these brands of toilet tissue, Kleenex facial tissues and Viva paper towels in the United States, as well as in baby care, female and adult care, and operates in 175 countries. .
As ubiquitous as its products are, the company continues to increase sales. The pandemic has certainly been a boon for brands focused on Kimberly Clark’s house, and sales rose 6% in the fourth quarter of 2020 ended Dec.31. This was after the initial wholesale buying frenzy, but the tissue segment still grew by 14%. It was a strong quarter, with management investing more in brands, securing greater market share and $ 575 million in cost savings.
Kimberly Clark shares pay the highest dividend on this list at 3.37%, and they have increased the dividend every year since 1972, including a dividend increase already in January 2021. That’s 49 years in a row, which means that she will join the ultra-exclusive list of The kings of the dividend when it raises its dividend in 2022.
More than just a cola
PepsiCo sales fell along with almost every other beverage company, as takeout suffered from the lockdowns. But with a 3% drop, the turnover was much lower than that of its rival Coca Coladown 28% in the second quarter, and returned to growth territory with a 5% increase in the third quarter ended Sept. 5.
What turned the tide in PepsiCo’s favor was its more diverse assortment of products, including snacks and breakfast foods, both of which were big sellers while people stayed home. In the second quarter, when out-of-home activity plunged, Quaker breakfast foods increased 23% and Frito-Lay snacks increased 7%.
These brands remained strong in the third quarter. PepsiCo’s sales were on the rise before the pandemic, and its wide range of brands is also what will bring it into the future. CEO Ramon Laguarta stressed that the company will focus its efforts on increasing the market share of its core brands, as well as developing new growth brands.
PepsiCo has increased its dividend every year for the past 48 years, so it is also heading towards elite Dividend King status, and currently earning 2.94%, making it a high yielding and trustworthy dividend. .
More than just a coffee
Starbucks’ dividend has the lowest yields on this list, at 1.83%, but it has also increased it every year since 2010. This increase has continued during the pandemic despite sharp declines and losses in sales, demonstrating the King of Coffee’s commitment to his dividend.
Starbucks is still in growth mode and has opened 278 new stores in the First quarter 2021 ended Dec. 27, for a total of nearly 33,000. Former CFO Pat Grismer previously said the company is on track to have 55,000 stores by 2030, a huge increase, giving it enormous power growth.
The pandemic has strained growth as people do not have their morning coffee on the way to work. First quarter lineups were down 5%, a steady improvement from the 9% decline in the fourth quarter. Stores are still not fully functional, with most offering limited seating due to social distancing efforts, but the company has shifted focus and opened more suburban locations as well as launching more pandemic-friendly features. like curbside collection. It also opened more drive-thru stores, which accounted for half of total sales and saw a 10% price increase in the first quarter.
Starbucks improved its membership program in 2020 and added more mobile payment options, and mobile accounted for 30% of total sales in China in the first quarter. The company sees itself as the digital priority, which sets it up for future growth as digital adoptions expand and makes it a great stock of dividends to hold for the long haul.
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