The Best Dividend Stocks to Buy Right Now Could Be Hiding in Plain Sight
Dividends tell a story if you are willing to listen. And one of the most important tales that investors can gather from dividends is consistency, which is indicated by long histories of annual dividend increases. And that is exactly what you'll find today from consumer staples stocks like Procter & Gamble (NYSE: PG), Coca-Cola (NYSE: KO), and Hormel Foods (NYSE: HRL) -- all names that you'll find in your local grocery store.
Procter & Gamble is probably the most diversified name on this list, offering consumer staples from deodorant to paper towels. These are things people buy on a regular basis, with the company's focus generally on the higher end of the categories it serves. It has a long history of using innovation to justify prices above what its peers can charge. Adding to its attractiveness as an investment is its massive scale, including a huge $330 billion market capitalization. It has an incredible distribution network and the resources to invest in its products (the aforementioned innovation driven by research and development) and aggressively advertise them.
This backdrop has allowed Procter & Gamble to increase its dividend annually for 66 consecutive years, making it a Dividend King. The yield today is around 2.6%. While that's not an incredible number on an absolute basis, it is a full percentage point above the 1.6% on offer from an S&P 500 index exchange-traded fund today. And while some investors might be worried about the impact inflation will have on Procter & Gamble's profit margins, history suggests it will be able to pass through price increases over time.
Source Fool.com
