Reflecting on Your Financial Journey: 3 Compelling Dividend Stocks to Buy
As 2024 comes to a close, it’s essential to assess your financial progress and identify opportunities to achieve your goals in 2025 and beyond. If generating passive income is a priority, you’re in luck. Three dividend stocks, Freeport-McMoRan, York Water, and PepsiCo, have experienced significant declines this year, making them attractive buys before the new year.
Freeport-McMoRan: A Copper Miner with Growth Prospects
With a dividend yield slightly above the S&P 500 average and a share price down 32% from its all-time high, Freeport-McMoRan is an appealing dividend stock candidate. Its growth prospects, driven by its leaching initiative, could significantly increase copper production at a relatively low cost. Even if you’re neutral on copper prices, the stock’s estimated EBITDA of $12 billion in 2025/2026, combined with its current enterprise value, implies an excellent value.
York Water: A Reliable Dividend Stock with a Rich History
York Water, a water utility stock, has fallen 9% year to date, but its commitment to rewarding shareholders remains unwavering. With a 2.5% forward dividend yield, York Water’s attractive price tag and consistent dividend payments over two centuries make it an excellent choice for those seeking passive income. As a regulated utility, York Water’s guaranteed rates of return provide management with a clear understanding of future cash flows, enabling them to plan for capital expenditures and dividend payments.
PepsiCo: A Consumer Staples Giant with a Proven Track Record
PepsiCo, a food and beverage giant, has raised its dividend for the 52nd consecutive year, boasting a yield of 3.4%. Trading at a discounted price-to-earnings ratio of 23.3, PepsiCo checks all the boxes regarding dividend track record, yield, and valuation. Despite its recent struggles, PepsiCo remains an incredibly profitable company with a top-tier supply chain and distribution network, making it an excellent buy for those seeking a reliable dividend-paying company at a reasonable valuation.
These three dividend stocks offer compelling opportunities to boost your passive income streams in 2025. With their attractive valuations, growth prospects, and proven track records, they’re worth considering before the new year.
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