Chevron Corporation (CVX), PepsiCo, Inc. (PEP), Kimberly Clark Corp (KMB): 3 Stocks to Invest In for Dividend Growth

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  • PepsiCo, Inc. (NYSE:PEP) has used its global snack and beverage business to produce consistent cash flow and profits over the long run, giving back much of its earnings in the form of dividends. Its 2.8% yield comes after 41 consecutive years with payout boosts. With a payout ratio of 55%, PepsiCo, Inc. (NYSE:PEP) needs to keep growing in order to support further dividend increases, but even as soft drink makers in the U.S. have to deal with rising concerns about obesity, PepsiCo, Inc. (NYSE:PEP) has taken the lead with a forward-looking emphasis on healthier offerings that should serve it well throughout the world.
  • Consumer-products maker Kimberly Clark Corp (NYSE:KMB) sports the highest payout ratio in this group at 66%, but its 3.4% yield and 41 straight years of rising dividends make it a logical stock to invest in for dividend investors. The company has done a good job of taking advantage of missteps from rivals in the industry, with an emphasis on growth in emerging markets like Latin America. As rising consumer middle classes in emerging nations demand more of the conveniences that people in developed countries take for granted, Kimberly Clark Corp (NYSE:KMB) is positioning itself to deliver those goods in the hopes of building lifelong relationships with new customers.
  • Find the best stocks
    These three stocks aren’t the only ones that dividend investors should look at, but they’re representative of the opportunities you can still find in the market. To find the best stocks to invest in, seeking attractive dividend traits is a strategy that should serve you well now and well into the future.

    The article 3 Stocks to Invest In for Dividend Growth originally appeared on Fool.com.

    Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Chevron, Kimberly-Clark, and PepsiCo. The Motley Fool owns shares of PepsiCo.

    Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


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