Discover the Best Beverage Stocks with High Dividend Yields

Saturday, 23 March 2024, 12:24

Explore top beverage stocks like Coca-Cola, Starbucks, and Keurig Dr Pepper with impressive dividend yields above 2.5%. Coca-Cola boasts a 3.2% dividend yield and a track record of consistent dividend increases, Keurig Dr Pepper offers a 2.9% yield with a focus on dividend growth, and Starbucks shows a 20% annual dividend growth rate. These stocks present excellent opportunities for investors seeking income growth.
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Discover the Best Beverage Stocks with High Dividend Yields

Dividend royalty

Coca-Cola's dividend yields 3.2%. The company's exceptional record includes a 5.4% increase this year, marking its 62nd consecutive annual raise.

  1. Long-term target is to organically grow revenue by 4% to 6% annually
  2. Plans to drive 7% to 9% yearly EPS growth and healthy free cash flow
  3. Expected 2023 free cash flow of $9.2 billion to sustain growing dividends and share repurchases

Adding some pop to the payout

Keurig Dr Pepper's dividend yield is 2.9%. The company focuses on a dividend growth strategy after achieving its leverage target post-merger of Keurig Green Mountain and Dr Pepper Snapple Group in 2018.

  • Strategy includes maintaining a low dividend payout ratio of 45%
  • Significant investments in high-growth platforms and share repurchases over the past three years

Caffeinated growth

Starbucks offers a dividend yield of 2.5%. The company displays a 20% compound annual dividend growth rate since initiating dividends 13 years ago.

  1. Pursuing store expansion to 55,000 locations worldwide
  2. Efficiency gains goal of saving $3 billion in costs over the next three years
  3. Long-term target to grow revenue by more than 10% annually and deliver 15%+ earnings growth

Quenching dividend stocks

Coca-Cola, Keurig Dr Pepper, and Starbucks offer high-yield dividends that are poised for growth. These beverage giants are ideal for investors seeking to build a growing income stream by holding onto quality stocks.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

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