Americans certainly have a sweet tooth. We consume about 17 teaspoons of added sugar dailyabout five more than our recommended allocation. We add sugar to almost everything, including drinks, snacks and… a lot of processed and prepared foods.
While our sugar intake isn’t good for our waistlines, it is Great for the results of companies that sell us all the sweet things we want. Many of these companies make so much money satisfying our sugar cravings that they can pay out lavish dividends to their investors. Therefore, they can help satisfy an investor’s desire for passive income. Here are two great ones sugar stocks buy for a sweet flow of dividend income.
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Coca-cola (NYSE: KO) probably doesn’t need much introduction for people with a sweet tooth. The global beverage giant sells sweetened sparkling soft drink brands Coca-Cola, Sprite and Fanta. It also sells water, sports, coffee, tea, juice, value-added dairy and plant-based beverage brands, many of which are sweetened. While Coca-Cola is working to reduce the sugar content in its drinks through innovative new products, it is certainly contributing to our high sugar intake.
The company has been a nice dividend stock over the years. The country has increased its payment for 62 years in a row, qualifying it as an elite Dividend Kinga company with 50 or more years of annual dividend growth. The beverage giant recently increased its dividend payout by 5.4%. Last year it paid and cashed out $8 billion in dividends out has returned more than $80 billion in cash to its shareholders since 2010.
Coca-Cola’s dividend currently yields about 3%. That’s a nice payout, considering S&P500‘S The dividend yield is currently at a twenty-year low of around 1.2%. The company should be able to build on its legacy and increase its payouts in the future.
Coca-Cola expects to grow its revenue organically by 4% to 6% per year, which should deliver annual earnings per share growth of 7% to 9% over the long term. That should enable the beverage giant to do so stay satisfied its investors’ desire for a growing stream of passive dividend income.
Hershey (NYSE:HSY) is the best pastry chef in the country. It is also the No. 2 player in the U.S. snack industry. Iconic confectionery brands include Hershey’s, Reese’s, Kisses, Kit Kat, Jolly Ranger and Twizzlers. Hershey also sells salty snacks, such as SkinnyPop, Pirate’s Booty and Dot’s Homestyle Pretzels.
