Monday, September 15, 2014

Rainy Day Dividend Stocks

A pessimist might say life is a series of bad things happening, then we die. I certainty wouldn't go that far, but life often deals us unfortunate circumstances to work through at what seems to be the most inopportune time. During the 2007-2008 economic downturn, many people lost their jobs at a time when companies weren't hiring. When things like this happen, those with an alternative income, including dividend growth stocks, are in a better position to deal with the circumstances thrust on them.


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Sunday, September 14, 2014

Weekend Reading Links - September 14, 2014

For your weekend reading pleasure, the articles listed below contain some of the best dividend and value investing insights found on the web. They were written by various members of the Dividend Investing and Value Network over the past week:


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Saturday, September 13, 2014

How to Grow Your Dividend Income

If you had enough passive dividend income and interest or rental income to perpetually support your expenses, and you could direct your creativity and passion to do what you want, how would you spend your time?
When you buy dividend stocks, you get paid dividends, and with enough time, you can build a diversified portfolio that provides you with enough income to support your lifestyle.


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Friday, September 12, 2014

Dividend Stock Analysis of PepsiCo (PEP)

PepsiCo, Inc. (PEP) manufactures, markets, and sells various foods, snacks, and carbonated and non-carbonated beverages worldwide. The company operates in four divisions: PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB), PepsiCo Europe, and PepsiCo Asia, Middle East and Africa (AMEA). The company is a dividend aristocrat which has increased distributions for 42 years in a row. PepsiCo is also one of the 60 companies which could be purchased commission-free using Loyal3, with as little as $10.

The company has managed to deliver 7.70% average increase in annual EPS over the past decade, while the annual dividend payment has increased by 13.50% per year over the past decade, which is higher than the growth in EPS.

Currently, the company is attractively valued as it sells for 19.70 times forward earnings and yields 2.90%. It is slightly more expensive than Coca-Cola, which sells for 19 times forward earnings and has the same yield. The pure play on North American soda is Dr. Pepper Snapple (DPS) is cheaper at 17 times forward earnings and a current yield of 2.70%. I like PepsiCo, but it is selling at the highest point I would be willing to put money at. As a result, I would likely not put money there, unless valuation gets better or unless I run out of other ideas.


Full Disclosure: Long PEP, KO, DPS

Relevant Articles:

How to buy dividend stocks with as little as $10
7 Dividend Paying Stocks I Purchased Without Paying Commissions
Seven wide-moat dividends stocks to consider
Dividend Growth Stocks are Compounding Machines
Let dividends do the heavy lifting for your retirement

This article was written by Dividend Growth Investor. If you enjoyed this article, please subscribe to have future articles emailed to you [Email] or follow me on Twitter [Twitter]


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