It is quite easy for future retirees to get distracted in a market where some of the most speculative stocks are making headlines. The stocks of the old economy that have solid business models and stable cash flows are nowhere to be seen when Reddit merchants blow up the value of unknown names or prominent companies invest in the famously volatile Bitcoin.
But if you're in the marketplace to secure a steady stream of income for your golden years, it's important not to overlook those boring names that quietly but reliably send dividend checks to investors without a hint to miss.
Below we have shortlisted three top dividend stocks that can be a great addition to any income-generating portfolio in the long run.
1. Pepsi Co
It is certainly not a bad time to lock in shares of snack and beverage giant PepsiCo (NASDAQ 🙂 3% dividend yield, especially when interest rates are at rock bottom .
In recent quarters, Pepsi has helped stronger-than-expected sales by homebound consumers stocking up on snacking during the pandemic. Pepsi is well positioned to take advantage of these changing eating habits as it has a diversified portfolio of snack items such as Tostitos, Fritos, Ruffles and Cheetos.
To her, Pepsi reported that organic sales at the Frito-Lay division were up 5%; they were up 8% at Quaker Foods North America, in what has been management's 'one of the best quarters'. calls.
Pepsi Weekly Chart.
"People have to eat, they have to drink, and we've figured out how to get it to them on the channels they want," Chief Financial Officer Hugh Johnston told Bloomberg in an interview.
In addition to a solid product portfolio, Pepsi is also a reliable dividend provider. The company pays $ 1,022 per share each quarter. The payout was increased by 5% this month. For the past five years, PEP shares delivered 8% dividend growth every year.
2. Johnson & Johnson
The healthcare giant Johnson & Johnson (NYSE 🙂 isn't the kind of stock you hear people brag about at dinner parties. But New Jersey-based JNJ is just the kind of dividend that retirees – or those planning to retire – should be buying.
Amid all the lawsuits related to the talcum powder, JNJ is still one of the world's most powerful brands in the world. Through its three business units, the company operates more than 260 companies around the world.
And the latter provided clear evidence that giants like JNJ can perform in both good and bad times thanks to their diversified businesses. Drugs such as Stelara, for inflammatory diseases, and Darzalex, for multiple myeloma, contributed to JNJ's sales growth of 16% for the company's pharmaceutical division as sales of medical devices declined as the pandemic demand for products for surgery, orthopedics and eye care decreased
JNJ, which has developed a single vaccine for the COVID-19 pandemic, is awaiting regulatory approval for emergency use. The company's shot could be a game-changer in the fight against the pandemic due to its standard cooling requirements.
Johnson & Johnson Weekly Chart.
When it comes to rewarding investors, few companies have fared better than Johnson & Johnson. The company has increased its quarterly dividend every year for 58 consecutive years.
This remarkable achievement places Johnson & Johnson in an elite group known as Dividend Kings, companies with at least five decades of annual dividend increases. JNJ pays $ 1.01 per share each quarter with an annual return of 2.43%.
3. Royal Bank of Canada
Since the outbreak of a pandemic, some investors have not had banks on their radar due to the inherent risk posed by financial institutions in times of need. But north of the border, long-term Canadian bank stocks have proven to be a much better bet than their US counterparts.
In Canada, banks operate in an oligopoly, where their domestic businesses are well protected from competition. Canadian banking regulations are much stricter compared to other advanced markets.
The latest example of this strong regulation is the nation's successful settlement of the real estate sector, where rampant speculation over the past decade has exposed many banks.
To gain exposure to one of the best banking systems in the world, Royal Bank of Canada (NYSE :), the country's largest lender, is a good choice. The Toronto-based institution generates hefty cash flows and pays out about half of its income each year in dividends.
Royal Bank of Canada Weekly Chart.
In the post-pandemic world, RBC is benefiting from a boom in trading activity thanks to its strong capital market activities. That company grew 44% from a year earlier, after a 45% profit in the third quarter.
The lender has been paying dividends to shareholders every year since 1870. The stock currently offers a quarterly distribution of $ 0.85 per share with an annual dividend yield of more than 4%.
