Growth stocks have fought their way back into the lead over the past few weeks, largely at the expense of other groups. If your chief investment goal is income, not only does this not matter, but it ultimately spells opportunity. It means you can get into some new dividend payers at a relatively more affordable price.
If you have $2,000 available to invest that isn’t needed for an emergency fund or to pay off monthly bills, here are three dividend stocks you might want to consider investing in.
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PepsiCo
Coca-Cola is one of investors’ favorite dividend stocks within the consumer staples sector, and certainly within the beverage space. Conversely, shares of rival PepsiCo (PEP 0.45%) have underperformed since 2023, mostly due to weakness in its snack chip arm Frito-Lay.
Today’s Change
(-0.45%) $-0.71
Current Price
$157.67
Key Data Points
Market Cap
$216B
Day’s Range
$156.47 – $160.03
52wk Range
$127.60 – $171.48
Volume
7.8M
Avg Vol
7.6M
Gross Margin
54.22%
Dividend Yield
3.61%
There may finally be a light at the end of the tunnel, however. Helped by innovation along with price cuts, last quarter’s companywide organic revenue grew 2.6%, in line with top-line growth from its North American food business. Earnings and revenue also both topped analysts’ expectations.
One good quarter doesn’t necessarily mark the beginning of a trend. All trends start with one quarter, though. Given that PepsiCo stock’s recent lethargy has allowed its forward-looking dividend yield to edge up to 3.7% versus Coca-Cola’s 2.8%, there’s a bit of added upside in betting that PepsiCo has indeed turned the corner.
Kenvue
Although it happened nearly two years ago, many investors still may not realize drugmaker Johnson & Johnson spun off its over-the-counter and personal care business into a company called Kenvue (KVUE +0.86%), which now wholly manages familiar brands like Tylenol, Listerine, Band-Aid, and Zyrtec.
It’s clearly not a growth business. Single-digit revenue growth is the norm here, if that. But it’s a business that’s ideally suited to support reliable, recurring dividends. These are goods that most households buy repeatedly. You can buy into this cash-generating business while the stock’s forward-looking dividend yield stands at 4.8%, thanks to last year’s mostly unmerited pullback.
Kenvue will soon be merging with Kimberly-Clark, by the way, creating a true consumables powerhouse. This won’t actually change much for the dividend, though. Kimberly-Clark’s forward-looking dividend yield is a comparable 5.2%. You just want to be on this side of the pairing before it finalizes later this year, since it prices Kenvue at a bit above its current value.
Procter & Gamble
Finally, add Procter & Gamble (PG +2.67%) to your list of dividend stocks to buy if you’ve got a couple thousand bucks you’re looking to put to work producing some income. Newcomers will be stepping into a forward-looking yield of right around 3%.
Today’s Change
(2.67%) $3.82
Current Price
$146.93
Key Data Points
Market Cap
$341B
Day’s Range
$143.16 – $147.59
52wk Range
$137.62 – $170.99
Volume
11M
Avg Vol
11M
Gross Margin
51.11%
Dividend Yield
2.88%
P&G is, of course, the name behind Tide laundry detergent, Pampers diapers, Gillette razors, Crest toothpaste, and more. Like Kenvue’s and PepsiCo’s products, these are goods people purchase repeatedly, making the business well-suited to supporting reliable dividends and dividend growth.
To this end, Procter & Gamble has now raised its annual per-share payout for 70 consecutive years, with no end to the streak in sight. It’s just too entrenched within the consumer staples landscape. Its massive size means it can easily outspend rivals on marketing and advertising. That may be an unfair advantage, but investors don’t want a fair fight — they want a winner with proven staying power.
