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Zacks Investment Ideas feature highlights: Coca-Cola, Pfizer and Altria
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For Immediate Release
Chicago, IL – October 2, 2024 – Today, Zacks Investment Ideas feature highlights The Coca-Cola Company (KO - Free Report) , Pfizer (PFE - Free Report) and Altria (MO - Free Report) .
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, Pfizer and Altria 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.
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.
It’s also worth noting that Altria has been enjoying margin expansion consistently over recent years, unlocking higher profitability.
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).
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.
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
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 fit the criteria.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Coca-Cola, Pfizer and Altria
For Immediate Release
Chicago, IL – October 2, 2024 – Today, Zacks Investment Ideas feature highlights The Coca-Cola Company (KO - Free Report) , Pfizer (PFE - Free Report) and Altria (MO - Free Report) .
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, Pfizer and Altria 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.
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.
It’s also worth noting that Altria has been enjoying margin expansion consistently over recent years, unlocking higher profitability.
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).
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.
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
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 fit the criteria.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.