Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Dividend Aristocrats to Profit From Everyday: Colgate-Palmolive Company (CL), PepsiCo, Inc. (PEP), The Coca-Cola Company (KO)

The Coca-Cola Company (KO)The S&P 500 Dividend Aristocrats is a collection of large cap companies that have increased their dividend every year for the past 25 years. By returning cash to investors these companies show that they are willing to partner with investors. A quick look at these firms shows that it is simple to build a strong dividend portfolio by just looking at normal, everyday products.

PEP data by YCharts

Food and Drinks

Oligopolized markets make for great investments if you can invest the top players. Building a global supply chain the size of PepsiCo, Inc. (NYSE:PEP)‘s is no easy task. Billions of dollars in financial and human capital are required to accomplish such a feat, and this helps to keep potential competitors at bay. Years back PepsiCo, Inc. (NYSE:PEP)decided to expand from a strictly beverage-only strategy. The diversification into snacks helps to decrease risk, as now the soft drink market only affects a portion of its sales.

Pepsi’s return on investment of 13.5% and profit margin of 9.5% are not amazing, but they still provide Pepsi with enough capital to continue growing. It has an EPS growth rate of 4.13% over the past five years. Growth is expected to continue with the company’s further expansion into the health food segment. PepsiCo, Inc. (NYSE:PEP)’s yield of 2.8% will not make anyone rich overnight, but the stability of the company’s business means that the company is the quintessential buy and hold stock.

The Coca-Cola Company (NYSE:KO) has taken a very different path from PepsiCo, Inc. (NYSE:PEP). The Coca-Cola Company (NYSE:KO)decided to focus on the beverage market. While it is famous for soft drinks it has a number of bottled water brands like Dasani.

Europe will continue to be a sore point, but growing in developing markets will boost The Coca-Cola Company (NYSE:KO) over the long term. The company is well positioned to benefit from growing per capita GDP in China and India with a wide network of distributors in these nations.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.