Dividend-paying stocksare a great way to generate passive income and can be considered a safe bet in the current uncertain market situation. Using TipRanks’Stock Screenertool, we shortlisted two Dividend Aristocrats that have received Buy recommendations from the analysts.Let’s take a closer look attwo such dividend stocks – Coca-Cola (NYSE:KO) and Procter & Gamble (NYSE:PG).
The Coca-Cola Co.
Beverage giant Coca-Cola has raised its dividends for 61 consecutive years. Further,KO’s dividend yield stands at 3%, above the consumer goods sector’s average yield of 2.1%. Coca-Cola’s cash position remained strong with an operating cash flow of $11.02 billion and a free cash flow of $9.53 billion as of December 31, 2022. The company’s payouts are supported by its defensive business model, ability to grow organic sales, and consistent EPS growth.
Last week, J.P. Morgan analyst Andrea Faria Teixeira reiterated a Buy rating on the stock. Teixeria believes that the company’s tax litigation risk is appropriately discounted. Additionally, the analyst thinks that while consumption is still high, Europe will continue to be Coca-Cola’s most challenging market.
The consumer products manufacturerhas raised dividends for 66 years in a row. Also, its dividend yield of 2.54% compares favorably with the sector’s average of 2.1%. The company’s diverse offerings, big sales footprint, and strong brand name support these payouts.
Earlier this week, Deutsche Bank analyst Stephen Powers maintained a Buy rating on PG stock and lowered the price target to $156 from $162. The analyst is of opinion that the risk of economic headwinds is growing for the consumer staples sector.
Is PG stock a Good Buy?
PG stockhas a Strong Buy consensus rating on TipRanks. This is based on 12 Buy and four Hold recommendations. Theaverage stock price targetof $157.38 implies 9.5% upside potential.Shares have tanked 4.5% so far in 2023.
Concluding Thoughts
Long dividend histories, robust cash flows, and strong businesses make KO and PG good choices for investors to consider. Further, analysts expect these stocks to rise over the next 12 months.
Some of the best dividend stocks include Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and AbbVie Inc (NYSE:ABBV) with impressive track records of dividend growth and strong balance sheets. In this article, we will further take a look at some of the best dividend stocks of all time.
But with the right stock portfolio, you can enjoy peace of mind as you live entirely off the dividend payments you earn. It sounds too good to be true – but it's entirely possible, and people around the world are doing it right now.
The Coca-Cola Company's ( KO ) dividend yield is 3.22%, which means that for every $100 invested in the company's stock, investors would receive $3.22 in dividends per year. The Coca-Cola Company's payout ratio is 74.22% which means that 74.22% of the company's earnings are paid out as dividends.
Microsoft Corporation (NASDAQ:MSFT), Visa Inc.(NYSE:V), and Apple Inc.(NASDAQ:AAPL) are some of the best blue chip dividend stocks among others that are mentioned below in our list.
Yields from 2% to 6% are generally considered to be a good dividend yield, but there are plenty of factors to consider when deciding if a stock's yield makes it a good investment. Your own investment goals should also play a big role in deciding what a good dividend yield is for you.
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