5 Best Dividend Stocks for Passive Income

1 – PepsiCo Inc. (NASDAQ: PEP)

In 1965, Pepsi-Cola and Frito-Lay merged to deliver their products under a single company. Their products are enjoyed by consumers in more than 200 countries and territories around the globe. Did you know that PepsiCo spun off Kentucky Fried Chicken, Taco Bell and Pizza Hut in 1997?During the first 9 months of 2020, PepsiCo generated almost $48 billion in revenues, $5.28 billion in net income, and $3.79 net income per share.

From the recent financials, the following statement was interesting: “Additionally, our industry continues to be affected by disruption of the retail landscape, including the rapid growth in sales through e-commerce websites and mobile commerce applications, including through subscription services, the integration of physical and digital operations among retailers and the international expansion of hard discounters. We have seen and expect to continue to see a further shift to e-commerce, online-to-offline, and other online purchasing by consumers as a result of the COVID-19 pandemic.” This explains the strong revenues and cash flow in spite of the difficult conditions that we face.

On 20^th November 2020, the share price was $143.42. At the end of the third quarter there were 52 big hedge funds positioned in this stock. Among these asset managers Donald Yacktman’s Yacktman Asset Management sits at the top spot. Pepsi is also a favorite of several quant hedge funds like AQR Capital Management.

Current dividend for the company is $1.02 and in annualized terms that corresponds to a 2.85% dividend yield. Compared to the previous period, dividend payout was increased by 7.07% (from $0.9550 to $1.0225). PepsiCo Inc. increased its dividends for 48 consecutive years.

Please also see 10 best dividend stocks to buy according to billionaire Ken Fisher and 10 best high dividend stocks to buy.

Disclosure: None.