Why You Should Consider These Dividend Stocks on the Dip

“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.”

– John D. Rockefeller

Now, there’s a man who knew how to live. Honestly, what could be better than watching the money roll in, courtesy of a good old dividend check? It’s like getting a pat on the back from your investments. Solid. Secure. A steady reminder that, for once, the world is not just chaotic noise but… well, an easy way to earn.

So, here’s a thought: while we’re all busy doing that tedious dance of managing portfolios, it’s time to look at a couple of dividend stocks that might just be your ticket to financial peace (or at least peace of mind). These two companies offer something more than a fleeting profit-they’ve got history, stability, and moats-lots of moats.

Canadian National Railway: It’s All About the Rails

First up, the big one. The Canadian National Railway (CNI), a corporate giant that runs 20,000 miles of railroads across North America. You’d think with that kind of reach, they’d have their feet up by now. But no, they’re hauling over 300 million tons of goods yearly-like a well-oiled machine that refuses to stop. Basically, they’re the backbone of the continent’s shipping industry.

The thing is, CN isn’t just about the miles. It’s about those “moats” I mentioned earlier. What’s a moat, you ask? Think of it as a fortress around a castle-hard to replicate. In CN’s case, it’s their vast, nearly impossible-to-copy railway infrastructure, plus their dominance over key locations like the Port of Prince Rupert. (I mean, who else is even close?)

But-deep breath here-it hasn’t all been smooth sailing. The company once pioneered precision scheduled railroading, but after the genius behind it, Hunter Harrison, left in 2009, it’s been a bit like trying to fill the shoes of an ex-boyfriend you still stalk on social media. Despite this, CN has managed to keep its dividend growth in check, with a respectable yield of 2.7% and a nice, consistent history of increases. So, keep an eye on it. It might not be perfect, but it’s reliable.

PepsiCo: The Snack and Beverage Behemoth

Now, onto something a bit… snackier. PepsiCo (PEP), a company so ingrained in our daily lives it’s practically a part of the family. Seriously, what’s not to love about a brand that delivers Pepsi, Gatorade, Doritos, and Lay’s? It’s like a party in your mouth every time you open a bag (unless you’re, you know, on a juice cleanse). PepsiCo is not just a snack-and-beverage giant, it’s THE giant.

The real beauty here, aside from the consistent cash flow from their product lines, is the company’s ability to adapt and diversify. From sodas to energy drinks, from water to sports drinks, PepsiCo isn’t just playing in one field-they’re building an empire. Plus, those international markets? They’ve made up about 40% of their total sales in 2024. Clearly, PepsiCo isn’t just holding onto a shrinking piece of the pie, it’s expanding the whole thing.

However, and here’s the kicker: After a few hiccups (self-inflicted wounds, naturally), PepsiCo has seen some underwhelming growth. But it’s bouncing back. The marketing spend is rising, brands are getting reinvigorated, and things are starting to look up. With a 4% dividend yield to boot, this might be the time to add a little PepsiCo to your portfolio-preferably with a snack in hand, naturally.

Is it Time to Buy?

In the past year, both PepsiCo and Canadian National Railway have seen their stocks dip-17% and 19%, respectively. Could this be a bargain or just a slight misstep on their part? Honestly, it’s likely a bit of both. These companies aren’t perfect, but they have something critical in their corner: durability. The global snack market is hardly shrinking, and railroads? Well, they’ve got staying power. Both are primed for a comeback, so if you’re looking to add to your dividend income, these might just be the stocks you’ve been waiting for.

Units of dividends collected: 3. Number of times I’ve thought about investing: 9. Number of snacks consumed while researching: 12. Will my next quarterly dividend be as sweet as my snack stash? Only time will tell. 🥤

2025-10-06 03:02

Canadian National Railway: It’s All About the Rails

PepsiCo: The Snack and Beverage Behemoth

Is it Time to Buy?

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