Sweet Dividends & Fizzy Fortunes

Now listen here, you clever investor. There are certain companies, see, that aren’t just about making fizzy drinks and crunchy snacks. They’re about something far more delightful: showering you with a regular supply of lovely, lovely cash. A sort of golden rain, if you will. And in these rather peculiar times, a bit of golden rain is precisely what one needs. We’re talking about those dependable giants who’ve been doling out dividends for decades, and who, with a bit of luck, will continue to do so long after you’ve traded your rocking chair for a rather splendid space rocket.

Let’s have a peek at two particularly plump specimens: Coca-Cola (KO 0.41%) and Pepsico (PEP 0.75%). They’re not exactly brimming with sunshine and lollipops, mind you – they’re businesses, after all – but they are remarkably good at turning water and potatoes into a stream of income for sensible people like yourself.

Coca-Cola

Coca-Cola, now there’s a name. A brand so powerful, it could probably convince a badger to drink brown, bubbly liquid instead of worms. They’ve been handing out dividends for a staggering 63 years! That’s longer than your great-grandmother has been knitting itchy sweaters. This isn’t just luck, you see. It’s a clever bit of magic, built on a global network that wraps around the world like a sticky, sweet vine. They’ve got a knack for making you crave their concoctions, even when you know you shouldn’t. And that, my friend, is a very valuable talent.

They can nudge prices upwards without sending everyone running for the water fountains. It’s like a secret power. Just recently, they managed to boost revenue by a healthy 6% while only increasing the volume of drinks sold by a measly 1%. They’re selling the idea of refreshment, you see, not just the liquid itself. A clever trick, indeed.

This brand power translates into mountains of cash, a good two-thirds of which they cheerfully hand back to shareholders. Currently, you’ll get $2.04 a year for every share you own, which yields a respectable 2.60%. And analysts reckon they’ll keep growing those earnings at a rate of 6% a year. A solid, dependable income stream. Like a friendly, well-fed goose laying golden eggs.

Pepsico

Now, Pepsico is a bit of a different beast. They don’t just dabble in fizzy drinks; they’re masters of the crunchy, salty snack. Lay’s, Doritos, Gatorade… they’ve got a whole army of tempting treats. And they’ve been sharing the wealth with shareholders for a good 60 years. That’s a long time to avoid upsetting investors, wouldn’t you say?

Like Coca-Cola, they’ve built a global network for delivering these delights. The past few years have been a bit bumpy, with prices going up and people getting a bit grumpy, but Pepsico has weathered the storm rather well. Revenue is up over 5%, and earnings per share have jumped by a tidy 11%. They’re not just selling snacks; they’re selling comfort, a little bit of joy in a bag.

They’re also clever enough to know that people are starting to worry about their waistlines. So, they’re investing in healthier options and finding ways to make their products more affordable. It’s a bit like a mischievous goblin trying to appear respectable. They recently announced a 4% increase to their annual dividend, bringing it to $5.92 per share. That gives you a yield of 3.52%, representing 69% of analysts’ earnings estimates. A rather generous reward for a company with such a long and consistent track record.

So, there you have it. Two companies, steeped in history, brimming with cash, and eager to share the spoils with sensible investors. Not a bad combination, wouldn’t you agree? Now, if you’ll excuse me, I believe I deserve a biscuit.

2026-02-14 10:53

Coca-Cola

Pepsico

Read More