Coca-Cola, Pepsi, and Hormel Are All Magnificent Dividend Stocks. But There's a Simple Reason I Choose 1 Over the Other 2.

For investors looking for a safe dividend investment, perusing the list of Dividend Kings is a good place to start. These companies have all paid and increased dividends for 50 years or more. This doesn't mean that the streaks will continue forever. Indeed, companies frequently drop off the list. But it does show which companies have a history for operational excellence and prioritize shareholder returns.

Three companies that make the Dividend Kings list are beverage giant The Coca-Cola Company (NYSE: KO), Coke's top rival (NASDAQ: PEP), and food company Hormel Foods (NYSE: HRL). But from an investment perspective, these three companies share even more similarities than just their dividend longevity.

For starters, dividend investors like to consider a stock's dividend yield before investing -- this is how much investors have received for the value of their investment in the past year. The chart below shows that Coca-Cola, Pepsi, and Hormel all have a dividend yield close to 3%, giving investors $3 for every $100 invested.

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Source Fool.com