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3 Consistent Dividend Stocks for Passive Income: KO, PFE, MO
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Everybody loves dividends, as they provide a passive income stream, limit drawdowns in other positions, and provide more than one way to profit from an investment.
And when considering dividend-paying stocks, those with a history of boosting their payout are prime considerations, reflecting their commitment to increasingly rewarding shareholders.
Of course, consistent dividend hikes also reflect a successful nature, opting to share a portion of profits.
For those seeking companies that have consistently boosted payouts over time, The Coca-Cola Company (KO - Free Report) , Pfizer (PFE - Free Report) , and Altria (MO - Free Report) fit the criteria. Let’s take a closer look at each.
Altria Remains Dividend Favorite
Altria, a current Zacks Rank #2 (Buy), has long been a favorite among income-focused investors, holding the ranks of a Dividend Aristocrat. The tobacco giant has undergone significant transformation over recent years due to rising health fears, now expanding into the smokeless category.
The company’s outlook has marginally improved nearly across the board over recent months, with shares up an impressive 35% in 2024.
Image Source: Zacks Investment Research
And it remains a high-yield stock, with shares currently yielding 8% annually compared to the S&P 500’s 1.2% yield. The company has historically been shareholder-friendly, reflected by its above-mentioned status in the Dividend Aristocrats club and a 4% five-year annualized dividend growth rate.
Below is a chart illustrating the company’s dividends paid on an annual basis, with the final value being tracked on a trailing twelve-month basis. The company paid dividends of $1.7 billion and $3.4 billion in the second quarter and first half of 2024, respectively.
Image Source: Zacks Investment Research
It’s also worth noting that Altria has been enjoying margin expansion consistently over recent years, unlocking higher profitability.
Image Source: Zacks Investment Research
Can Pfizer Bounce Back?
Pfizer shares have largely been disappointing, down nearly 30% over the last two years and widely underperforming following a remarkable climb during the pandemic era. Still, the company’s outlook has shifted positively as of late, boding well for near-term performance and landing it into a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Still, the poor share performance has pushed the stock into a high-yield scenario, currently yielding a solid 5.8% annually. And dividend growth has remained steady, with five payout increases over the last five years translating to a 3% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
The valuation picture here has also become much more tolerable, with the current 1.2X PEG ratio comparing favorably to a 4.3X five-year high and 1.3X median. The stock sports a Style Score of ‘B’ for Value.
Coca-Cola Keeps Paying
Like MO, Coca-Cola holds a spot in the elite Dividend Aristocrats group due to years of consistently higher payouts, with the stock also sporting a favorable Zacks Rank #2 (Buy) thanks to a constructive earnings outlook.
Below is a chart illustrating its dividends paid on an annual basis.
Image Source: Zacks Investment Research
Analysts revised their current year earnings expectations positively following its latest earnings release, remaining stable since. Concerning the print, the company continued to grow nicely, with earnings up 8% alongside a 3% sales boost.
Image Source: Zacks Investment Research
The valuation picture here is a bit rich, with the current 3.8X PEG ratio above the 3.4X five-year median and undoubtedly expensive. Still, it’s worth noting here that shares have traded at a high multiple over recent years, likely reflective of the company’s rock-solid standing and ‘staply’ nature.
Bottom Line
Everybody loves dividends, essentially investors’ form of payday. They can help limit drawdowns in other positions and provide a passive income stream, two key traits that all market participants enjoy.
And for those seeking companies with a consistent history of steady payouts, all three above – The Coca-Cola Company (KO - Free Report) , Pfizer (PFE - Free Report) , and Altria (MO - Free Report) fit the criteria – fit the criteria.
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3 Consistent Dividend Stocks for Passive Income: KO, PFE, MO
Everybody loves dividends, as they provide a passive income stream, limit drawdowns in other positions, and provide more than one way to profit from an investment.
And when considering dividend-paying stocks, those with a history of boosting their payout are prime considerations, reflecting their commitment to increasingly rewarding shareholders.
Of course, consistent dividend hikes also reflect a successful nature, opting to share a portion of profits.
For those seeking companies that have consistently boosted payouts over time, The Coca-Cola Company (KO - Free Report) , Pfizer (PFE - Free Report) , and Altria (MO - Free Report) fit the criteria. Let’s take a closer look at each.
Altria Remains Dividend Favorite
Altria, a current Zacks Rank #2 (Buy), has long been a favorite among income-focused investors, holding the ranks of a Dividend Aristocrat. The tobacco giant has undergone significant transformation over recent years due to rising health fears, now expanding into the smokeless category.
The company’s outlook has marginally improved nearly across the board over recent months, with shares up an impressive 35% in 2024.
Image Source: Zacks Investment Research
And it remains a high-yield stock, with shares currently yielding 8% annually compared to the S&P 500’s 1.2% yield. The company has historically been shareholder-friendly, reflected by its above-mentioned status in the Dividend Aristocrats club and a 4% five-year annualized dividend growth rate.
Below is a chart illustrating the company’s dividends paid on an annual basis, with the final value being tracked on a trailing twelve-month basis. The company paid dividends of $1.7 billion and $3.4 billion in the second quarter and first half of 2024, respectively.
Image Source: Zacks Investment Research
It’s also worth noting that Altria has been enjoying margin expansion consistently over recent years, unlocking higher profitability.
Image Source: Zacks Investment Research
Can Pfizer Bounce Back?
Pfizer shares have largely been disappointing, down nearly 30% over the last two years and widely underperforming following a remarkable climb during the pandemic era. Still, the company’s outlook has shifted positively as of late, boding well for near-term performance and landing it into a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Still, the poor share performance has pushed the stock into a high-yield scenario, currently yielding a solid 5.8% annually. And dividend growth has remained steady, with five payout increases over the last five years translating to a 3% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
The valuation picture here has also become much more tolerable, with the current 1.2X PEG ratio comparing favorably to a 4.3X five-year high and 1.3X median. The stock sports a Style Score of ‘B’ for Value.
Coca-Cola Keeps Paying
Like MO, Coca-Cola holds a spot in the elite Dividend Aristocrats group due to years of consistently higher payouts, with the stock also sporting a favorable Zacks Rank #2 (Buy) thanks to a constructive earnings outlook.
Below is a chart illustrating its dividends paid on an annual basis.
Analysts revised their current year earnings expectations positively following its latest earnings release, remaining stable since. Concerning the print, the company continued to grow nicely, with earnings up 8% alongside a 3% sales boost.
The valuation picture here is a bit rich, with the current 3.8X PEG ratio above the 3.4X five-year median and undoubtedly expensive. Still, it’s worth noting here that shares have traded at a high multiple over recent years, likely reflective of the company’s rock-solid standing and ‘staply’ nature.
Bottom Line
Everybody loves dividends, essentially investors’ form of payday. They can help limit drawdowns in other positions and provide a passive income stream, two key traits that all market participants enjoy.
And for those seeking companies with a consistent history of steady payouts, all three above – The Coca-Cola Company (KO - Free Report) , Pfizer (PFE - Free Report) , and Altria (MO - Free Report) fit the criteria – fit the criteria.