Dividend stocks are rightfully a staple in today’s investment portfolios because they offer regular, ongoing cash payments. But when a company can deliver steady share price appreciation in addition to stable payouts, a virtual holy grail is reached.<\/p>\n
So, what are three top dividend stocks that look most promising now?<\/p>\n
PepsiCo, Inc. (NASDAQ:PEP<\/a>)<\/strong> products are enjoyed more than a billion times each day in over 200 countries.<\/p>\n The company’s portfolio is one that contains the world’s most iconic brands, each of which generates more than $1 billion annually in retail sales. In 2023, PepsiCo reached net revenues of $91.4 billion thanks to its wide range of sports and soft drinks and ready-to-eat foods.<\/p>\n PepsiCo hasn’t slowed down this year by any means either. In Q1 2024, PepsiCo\u2019s net revenue rose by 2.3% year-over-year, reaching $18.25 billion<\/a> while gross profit rose by 1.5% year-over-year, to $10 billion.<\/p>\n Profit margins increased between Q2 and Q3 2024 to $2.72 billion, while net income grew by 5.7% compared with Q3 2023.<\/p>\n Back in April, management stated that the quarterly dividend would be $1.355 for each share of common stock, 7% higher<\/a> than Q3 2023.<\/p>\n Q2 2024 payments were made on June 28, 2024, to all shareholders of record as of June 7, 2024, marking the company’s 52nd consecutive annual dividend increase.<\/p>\n PepsiCo pays an annual dividend of $5.42 per share, which is a return of 3.26% based on the current stock price. In the last three years, the company’s dividends have grown at a CAGR of 7.5% and it’s noteworthy that the average yield over the past four years is 2.73%, a good bit lower than the present yield.<\/p>\n PerpsiCo stands out for its impressive margins, especially its trailing-12-month gross profit margin is 54.15%, which is 53.2% higher than the industry’s average of 35.35%. Another standout statistic it that the company’s trailing-12-month EBITDA margin of 17.83% is 38.4% higher than the industry average of 12.89%.<\/p>\n This year is anticipated to be one of highest revenue-generating years for PepsiCo’s with $94.42 billion forecast. Meanwhile, analysts say earnings-per-share could rise by 7.1% compared to FY 2023. In each of the last four quarters, PepsiCo has outperformed expectations for EPS.<\/p>\n Looking ahead to next year, it’s forecast that revenues will rise by 4.6% while EPS is set to go up by 8.1% compared to FY2024. <\/p>\n Analysts are optimistic about PepsiCo\u2019s stock and forecast a rise of 13.79% to reach a consensus target price of $185.03.<\/p>\n McDonald’s Corporation (NYSE:MCD<\/a>)<\/strong> has more than 40,000 locations in over 100 countries. Remarkably, about 95% of its restaurants around the world are owned and operated by local independent franchisees, allowing the company to collect a percentage of sales, which remain in the billions.<\/p>\n Earlier this year, McDonald’s saw total revenues increase by 4.6% from the prior year to reach $6.17 billion <\/a>while operating income rose by 8.1% from Q1 2023 to $2.74 billion. Non-GAAP net income rose by 1.1% to $1.96 billion.<\/p>\n In May, the company announced that it would pay a quarterly cash dividend of $1.67<\/a> per share, which was paid out to all investors with a stake as of June 3 in June 2024.<\/p>\n McDonald’s has now increased dividend payouts for 22 years in a row. The company’s annual dividend of $6.68 represents a yield of 2.7% based on the current stock price. For the past three fiscal years, dividends have grown at a CAGR of 8.5%, a positive trend for investors who are committed to a long-term holding.<\/p>\n Profitability and cash flows remain exemplary with a trailing-12-month EBITDA margin of 53.60%, which is well above the industry average of 11.35%.<\/p>\n The stock\u2019s trailing-12-month levered FCF margin of 24.50%, also substantially higher than the industry average of 5.52%.<\/p>\n Both the top and bottom lines are forecast to grow in the coming years. By the end of FY2024, McDonald’s revenue is slated to rise by 4.4%, bringing it up to $26.62 billion while earnings per share are projected to climb by 2.2% to reach $12.20.<\/p>\n Another positive note is that McDonald’s has beaten forecasted revenue and earnings figures in three of its last four quarters.<\/p>\n Over the next 5 years, revenues are expected to compound annually at a growth rate of 5.8% while earnings are set to climb by 7.2%.<\/p>\n Analysts believe McDonald’s stock is primed for a strong future, and forecast a rise of 23.6% to reach the $309 per share price target.<\/p>\nMcDonald’s<\/h2>\n
Verizon Communications<\/h2>\n