Sweet Success: 2 Dividend Stocks to Indulge In
The United States has a notorious sweet tooth, consuming an average of 17 teaspoons of added sugar daily – five more than the recommended amount. This sugar craze translates to big business for companies catering to our cravings, generating substantial profits and dividends for their investors.
Sugar Rush Profits
The sweetest part? These companies can afford to generously reward their investors with passive income. Two dividend stocks stand out from the crowd: Coca-Cola (NYSE: KO) and Hershey (NYSE: HSY).
A Global Beverage Giant
Coca-Cola needs no introduction. The iconic brand sells sweetened sparkling soft drinks, water, sports drinks, coffee, tea, juice, and plant-based beverages worldwide. While working to reduce sugar content through innovative products, Coca-Cola remains a significant contributor to our high sugar intake.
Dividend Royalty
Coca-Cola boasts an impressive 62-year streak of increasing dividend payments, earning it the esteemed title of Dividend King. Its most recent 5.4% dividend hike brings its total payout to $8 billion last year, with over $80 billion in cash distributed to shareholders since 2010. The current dividend yield of roughly 3% outshines the S&P 500’s 1.2% yield.
Growing Revenue, Growing Dividends
Coca-Cola expects 4%-6% annual revenue growth, driving 7%-9% earnings-per-share growth over the long term. This should enable the beverage giant to continue satisfying investors’ cravings for passive dividend income.
The Sweetest Treats
Hershey, the country’s top confectioner and No. 2 snacking industry player, offers iconic brands like Hershey’s, Reese’s, and Kit Kat, as well as salty snacks like SkinnyPop and Pirate’s Booty. Its dividend yield also exceeds 3%, with 15 consecutive years of payment increases and a 10%-plus annual growth rate over the past decade.
Innovative Growth
Hershey targets 2%-4% annual net sales growth and 6%-8% adjusted earnings-per-share growth over the long term. The company invests in developing innovative products and strategic acquisitions, such as its recent expansion into the sour candy segment with Sour Strips.
Tasty Stocks for Passive Income
Coca-Cola and Hershey make a killing by catering to our sugar addictions, generating the cash to pay lavish dividends. Their impressive dividend growth records and future prospects make them attractive stocks for those seeking sweet passive income.
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