Everybody loves dividends, as they provide a passive income stream, limit drawdowns in other positions, and provide more than one way to profit from an investment.
And when considering dividend-paying stocks, those with a history of consistent payouts are prime considerations, reflecting their commitment to shareholders.
Recently, three companies – Aflac AFL, American Water Works AWK, and PepsiCo PEP – have all announced a boost to their quarterly payouts. For those interested in income, let’s take a closer look at each.
Aflac
Aflac is an American insurance company and a massive supplier of supplemental insurance within the U.S. The company announced a sizable 19% boost to its quarterly payout, bringing the quarterly total to $0.13 per share.
Perhaps to the surprise of some, AFL shares have tracked the S&P 500 almost to a tee over the last decade, gaining 240%.
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American Water Works
American Water Works provides essential water services to millions of customers. The company recently announced an 8% boost to its quarterly payout, bringing the total to $0.76 per share.
Analysts have raised their earnings expectations across the board, with the company also recently confirming current-year guidance.
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PepsiCo
PepsiCo is the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. The company unveiled a 7% boost to its payout, bringing the quarterly total to $1.35 per share.
Investors stepped up post-earnings following its latest print, with PEP shares moving higher and adding nearly 4% over the last month compared to the S&P 500’s 3.2% decline.
Image Source: Zacks Investment Research
Bottom Line
Targeting dividend-paying stocks is an excellent strategy that investors can deploy.
Dividends soften the blow from drawdowns in other positions, provide more than one way to reap a return from an investment, and allow maximum returns through dividend reinvestment.
And all three companies above – Aflac AFL, American Water Works AWK, and PepsiCo PEP – have recently boosted their payouts.
For those seeking a reliable income stream, all three deserve serious consideration.
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Aflac Incorporated (AFL) : Free Stock Analysis Report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
American Water Works Company, Inc. (AWK) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
