A commonly practiced method of reaching financial independence is increasing your income streams; many choose to buy income stocks from dividend paying companies to accomplish this goal and adding them to their portfolio
Dividends are paid out on an annual, quarterly, or monthly basis from the revenues of companies to help entice investors to buy shares. Some companies who have been consistently paying and increasing their dividends for decades – known as Dividend Aristocrats – are well-known and well-loved by investors.
No company is obliged to pay out dividends, and dividends can be canceled at any time. That’s why it is important to find Dividend Aristocrats who have a record of maintaining their payments even in times of economic turmoil.
Here are 5 of the most popular dividend stocks for income investors who are looking to increase how much they earn per month.
Johnson & Johnson – JNJ
Johnson & Johnson is an American multinational corporation founded in 1886. It develops pharmaceutical goods and consumer goods, and it one of the world’s most valuable companies.
Its common stock is a component of the Dow Jones Industrial Average, and is ranked #37 on the 2018 Fortune 500 list.
It’s quarterly dividend has been steadily increasing since 1996, and did not decrease even during the 2001 and 2008 market crashes. It’s current yield is 2.79%
PepsiCo – PEP
PepsiCo, Inc. is a multinational food and beverage corporation headquartered in New York. Formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, PepsiCo has expanded to a broader range of food and beverage brands including Tropicana, Quaker Oats, and Gatorade. As of 2012, 22 of PepsiCo’s products have generated more than $1 billion in sales.
The current yield of it’s quarterly dividend is 3.11%.
Starbucks – SBUX
Undoubtedly one of the world’s most recognized companies, Starbucks started with a single store in Seattle and has since expanded around the globe. It is the world’s largest coffeehouse and operates over 30,000 stores across 77 countries.
Quarterly dividends at a rate of 2.12% have been steadily increasing since 2010, although it did not start paying out until 2010. Since we have not seen how Starbucks reacts to financial crisis and severe economic downturns (like 2008), we do not know how they will react to ongoing the market crash of 2020.
Kraft Heinz – KHC
The Kraft Heinz Company is an American food company formed by the merger of Kraft Foods and Heinz. Headquartered in Chicago and Pittsburgh, it is the third-largest food and beverage company in North America, and the fifth-largest in the world. Kraft Heinz ranked #114 in the 2018 Fortune 500 list of the largest American companies. As of this writing, it has a yield of 4.89%. Pay special attention to this company, it reduced it’s dividend after Q3 2018.
McDonald’s – MCD
There isn’t a place on Earth you could go to where McDonald’s isn’t well known. The fast food company was, founded by brothers Richard and Maurice McDonald in 1940, and made popular by Ray Kroc (who’s book, Grinding It Out, is a must read for any investor-minded or business-minded individual. Check it out here).
When taking into account the amount of revenue it has earned, McDonald’s is the world’s largest restaurant chain. In response to a great amount of negative backlash because of the unhealthiness of their food due to documentaries, the company has added salads, smoothies, and fruits to its menu.
This lies among some very popular dividend stocks, with steadily increasing dividends currently payout quarterly at a 2.63% yield.
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