Dividend stocks are a great way to generate passive income. A dividend is a portion of the profit that a company pays out to its shareholders. Many well-known companies, such as PepsiCo, are known to pay regular dividends to their shareholders.
However, there are also stocks that pay out even more than PepsiCo. In this article, we’ll introduce you to three dividend stocks that pay a higher dividend yield than the world-renowned company.
If you are an investor looking for passive income and a higher yield than PepsiCo, you should read this article carefully.
1. AT&T
AT&T is a multinational telecommunications company based in the U.S. The company is known for its high dividends. AT&T’s dividend yield of 7.3% is well above the average for S&P 500 companies. Paying a high dividend is part of AT&T’s strategy to attract long-term investors.
2. AbbVie
AbbVie is a U.S. pharmaceutical company focused on biopharmaceutical drugs. The company is a dividend champion, having paid dividends for over 45 consecutive years. AbbVie currently has a dividend yield of 5.1%, which means investors who invest in AbbVie can earn solid passive income.
3. Altria
Altria is a U.S. company that specializes in the production of tobacco and food products. Altria has an impressive history when it comes to dividends. The company has paid a dividend every year for the last 50 years. Currently, Altria has a dividend yield of 8.7%, making it one of the highest yielders on the market.
Oaktree Specialty Lending: a dividend stock with a high payout ratio
Oaktree Specialty Lending (OCSL) is an investment and financial services firm focused primarily on middle-market companies. The company offers loans and financing services and invests in various industries such as healthcare, energy and technology.
OCSL is an attractive option for investors seeking regular income stream through dividends. With a dividend yield of 8.7% in 2021, the company is one of the best dividend stocks on the market.
Compared to PepsiCo, a leader in the beverage industry, Oaktree Specialty Lending’s dividend yield is significantly higher. While PepsiCo offers a yield of 2.9%, OCSL offers nearly three times as much in dividend yields.
- Oaktree Specialty Lending has a strong balance sheet and a solid business model. The company has consistently paid dividends in the past and can continue to do so in the future.
- OCSL’s stable dividend payout is supported by its high payout ratio of 86.6%, which is an indicator of dividend sustainability.
Investors should note, however, that higher dividend yields can also come with higher risks. Investors should thoroughly research the company and its financial stability, especially in times of economic uncertainty or volatile financial markets.
Hasbro (HAS)
Hasbro is a leading supplier of toys and entertainment products. The company has demonstrated solid dividend growth in recent years, making it an attractive choice for dividend investors. Hasbro has delivered an average annual dividend yield of more than 2% over the past five years. The company also has an impeccable balance sheet and a solid financial position, which allows it to pay regular and reliable dividends.
In addition, Hasbro has a wide range of well-known brands in its portfolio, including Transformers, My Little Pony and Nerf. The company has solid partnerships with some of the biggest names in the entertainment industry, such as Marvel and Disney. Hasbro is well positioned to deliver long-term growth because of its strong market positioning and close ties to the entertainment industry.
Although Hasbro has faced some challenges in the past, such as a decline in sales of games and traditional toys, the company has successfully taken steps to diversify its growth and enter new markets. Solid market position and long-term growth prospects make it an excellent candidate for investors looking for solid dividend income and stable growth potential.
- Advantages of Hasbro:
- Strong dividend growth in recent years
- Solid financial position and impeccable balance sheet
- Strong market position with diversified portfolio of brands
- Strong partnerships with some of the biggest names in the entertainment industry
- Favorable long-term growth prospects
AT&T (T) – dividend stock with a high payout ratio
AT&T is among the largest telecommunications companies in the world and has a long history of being a reliable dividend payer. The company has an impressive dividend history and has been a dividend aristocrat for over 30 years. That means AT&T has increased its dividend every year in a row.
AT&T’s current payout ratio is about 60%, indicating that the company generates enough cash flow to pay an attractive dividend. Currently, AT&T’s dividend yield is about 7%, which is one of the highest yields among blue chip stocks.
Although the company faces challenges such as increased competition and the need to invest in new technologies, AT&T continues to offer investors solid dividend growth and an attractive yield. For investors looking for dividend stocks, AT&T is an excellent choice due to its high payout ratio and dividend history.
- Advantages of AT&T as a dividend stock:
- Long-time dividend aristocrat
- Attractive payout ratio of approximately 60%
- High dividend yield of about 7%
- Solid dividend growth
Overall, AT&T is a solid investment opportunity for investors seeking regular income from dividend payments. The company has a strong dividend history and is committed to continuing to grow the dividend as financial conditions permit. AT&T is one of the best dividend stocks on the market and therefore worth considering.
