Dividend Stocks: A Modest Proposal

The modern financial world is, of course, overrun with speculators. Individuals possessed of a nervous energy and a regrettable faith in algorithmic prediction. They inhabit a realm quite beyond my comprehension. I, myself, incline towards the stolid. Investments which do not require constant vigilance, lest one be swept away by the prevailing frenzy. Something, in short, to which one can turn one’s back without undue anxiety.

Dividend-paying equities, therefore, appeal. Particularly when coupled with a reinvestment scheme – a device which allows one to forget entirely about the transaction, save for the semi-annual arrival of a modest increment to one’s account. A rather civilized arrangement, wouldn’t you agree?

Boring, certainly. But boredom, in the financial sphere, is often a sign of underlying strength. The absence of excitement suggests a certain… robustness. And robustness, as any student of history will attest, is a virtue to be cherished.

The Black Tide Continues

Despite the prevailing enthusiasm for windmills and solar panels – a sentiment which I find both naïve and rather vulgar – oil remains, undeniably, the lubricant of modern existence. And will likely continue to do so for some decades yet. Enterprise Products Partners (EPD 0.45%) is, therefore, a proposition not to be dismissed lightly. It deals, quite simply, in the transportation of this indispensable commodity.

The company maintains an extensive network of pipelines, ensuring that the black tide reaches its intended destination. It currently distributes $2.20 per share annually, yielding 6.69% at present prices. More impressively, it has increased this distribution for the past 27 years. A record which suggests a certain…determination. One hesitates to use the word ‘momentum’ in such contexts, but the company appears, at least, to possess a degree of inertia.

A holding to acquire and then, quite deliberately, ignore.

A Ram Among Sheep

Baltimore-based T. Rowe Price Group (TROW 1.38%) has been providing financial services since 1937, a considerable longevity in the current climate. It is, in effect, an institution. And, as with all institutions, one suspects a degree of self-preservation. Its dividend growth streak, approaching four decades, is a testament to this quality.

The current yield stands at 4.77%, with a five-year growth rate of 7.13%. The balance sheet is, moreover, reassuringly conservative, with negligible debt ($489.5 million) and substantial cash reserves ($3.63 billion). A net income margin of 28.89% suggests a degree of efficiency. The company’s logo, a ram, is perhaps a touch flamboyant, but one is inclined to be bullish nonetheless.

Pepsi: Tolerable, at Least

One frequently encounters the question, in restaurants, of whether Pepsi is an acceptable substitute for Coca-Cola. A vulgar inquiry, of course, but one which highlights a certain…indifference. PepsiCo (PEP +0.13%) is, in any event, a perfectly adequate beverage company. And, when considering a portfolio allocation, I find it preferable to its more celebrated rival, Coca-Cola (KO +1.41%).

The details of PepsiCo’s operations are, I trust, familiar to all. Suffice it to say that it manufactures and distributes a variety of palatable refreshments. The current dividend yield is 3.89%, with a five-year growth rate of 6.93%. A record of consistent, if unspectacular, performance. Coca-Cola, by comparison, yields only 2.9%, with a five-year growth rate of 4.46%. A difference, perhaps, not substantial, but suggestive of a certain…complacency.

One is left to wonder, therefore, if Coca-Cola is, in fact, ‘OK’. Pepsi, at least, is perfectly tolerable.

2026-01-25 09:52

The Black Tide Continues

A Ram Among Sheep

Pepsi: Tolerable, at Least

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