Years' Worth of Passive Income Is Hiding in Plain Sight
If you think finding great dividend stocks is like trying to find a needle in a haystack, think again. It is as easy as walking through your local grocery store, where dividend Kings, stocks that have 50+ years of annual dividend increases behind them, are all over the place. Three you might want to consider adding to your wishlist, if not your buy list, are Procter Gamble (NYSE: PG), Coca-Cola (NYSE: KO), and Hormel Foods (NYSE: HRL). Here's a quick look at each.
Procter Gamble has increased its dividend annually for 67 consecutive years, soundly in Dividend King territory. The dividend yield is around 2.3% today, which isn't huge but is notably higher than what you would get from the S&P 500, which is yielding around 1.3% right now. P's products fall into the consumer staples space, but it notably does not make food.
The big story with P is innovation. It works to ensure that its portfolio of everyday essentials, like paper towels, laundry detergent, and toothpaste, have strong brands backing them. But that strength is derived from offering industry-leading benefits, which allow P to charge premium prices. Spending on research and development allows the consumer staples giant to keep upping its game, bringing out "new" and "improved" products on a regular basis. That, plus the company's impressive marketing muscle, brings customers into stores and makes P an incredibly valuable supplier for retailers. If you like big, industry-leading companies, this Dividend King should be on your shortlist.
Source Fool.com
