Dividend Investors Love Coca-Cola Stock and Pepsi Stock. But This Other Beverage Stock Might Be Poised for Better Dividend Growth.
When it comes to dividend investing, one could do worse than beverage giants The Coca-Cola Company (NYSE: KO) and (NASDAQ: PEP). Both companies have two key traits that dividend investors crave: Predictability and high yields.
Coca-Cola and Pepsi are two of the most predictable dividend payers on the market. Both companies have paid and increased their dividends for more than 50 years (61 years and 51 years, respectively), earning them the prestigious title Dividend King.
Coca-Cola and Pepsi are also both considered to have high-yield dividends -- a yield is how much investors get back compared to the value of the investment. The yield for Coca-Cola is over 3%, whereas the yield for Pepsi is just below that. But as the chart below shows, the yield for both companies is more than double the average for the S 500.
Source Fool.com