PepsiCo (PEP)
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When it comes to the taste of their products, there may be a difference between Coca-Cola and PepsiCo (NASDAQ:PEP). But as dividend stocks, there’s not much distinction, so it’s good to have both stocks in your portfolio.
What many investors prefer about PepsiCo is that the company has branched out from fighting the cola wars. Pepsi has become a snack food giant that houses the Frito-Lay’s and Quaker Foods brands, among others. As I wrote in early January, PepsiCo “straddles the line between “junk foods” and healthy options.”
As for the company’s dividend, PepsiCo currently pays $4.60 per share annually with a yield of 2.7%. Like Coca-Cola, PepsiCo is a Dividend King. The company has increased its dividend in each of the last 51 years. There could be some concern over a payout ratio of 65%, but there is no sign that the dividend is in trouble.