There are plenty of ways for a company to allocate its earnings. Some choose to reinvest most of their profits back into the business. Others repurchase their stock or pay dividends. No matter the strategy, the goal is to create value for investors.

Dividend stocks can be particularly attractive if you are looking to supplement your income in retirement or want an additional steady stream of income to bolster your finances at any stage of life. PepsiCo (NASDAQ: PEP) is a well-known stodgy dividend stock with a market-beating 3.2% yield. During the past 12 months, it has paid a whopping $7 billion in dividends. It has also raised its payout annually for more than 50 consecutive years -- making it a Dividend King. 

Utility giant Southern Company (NYSE: SO) has raised its payout every year since 2002, but has a 76-year track record of never cutting it. And, it has paid more than $3 billion in dividends over the last 12 months. With a yield of 3.5%, here's why Southern Company is a dividend stock worth considering now.

Continue reading

Source Fool.com