
3 Dividend Stocks to Buy to Create the Gift That Keeps on Giving
The holiday gift-giving season may be wrapping up, but that doesn't mean investors can't ring in the New Year with some gifts to themselves that keep on giving the whole year long. The right dividend stocks will add ever-increasing value to your portfolio, either through growing cash payouts, or -- when these payments are reinvested -- more shares of the stock paying them. And given that reliable dividend stocks tend to outperform inconsistent or non-dividend payers, even growth-minded investors might be wise to make a point of adding some of these names to their holdings. To this end, here's a closer look at three dividend stocks that would be smart additions to nearly anyone's portfolio. In no particular order... Image source: Getty Images. PepsiCo One of the most popular income stocks from the consumer staples sector of the stock market is Coca-Cola . And understandably so. The company's products are among the beverage industry's best-known, while the company itself has not only paid a dividend like clockwork for decades, but has raised its dividend payment every year for the past 63 years. If you're looking for a better yield opportunity from a consumer goods name, however, Coca-Cola rival PepsiCo ( PEP +0.00%) is arguably the better beverage bet right now, while its forward-looking dividend yield stands at nearly 4%. Granted, as anyone keeping tabs on this company of late knows, this yield has been pumped up largely because PepsiCo's stock has underperformed. NASDAQ: PEP Key Data Points Blame inflation, mostly. Some of PepsiCo's rising costs have been passed along to its customers, but many of them haven't, biting into its profits. These headwinds are finally abating, though, after the company itself has regrouped into a more relevant and marketable family of brands. For instance, in March the company acquired prebiotic soda brand Poppi, and in July unveiled the world's first prebiotic cola. Analysts aren't looking for an explosive response to these and other overhauls. But, they do expect sales growth to accelerate to a pace of 3.6% in the year ahead, driving even faster earnings growth. Once other investors see this growth materializing, they could jump on board pretty quickly, dragging this stock's current dividend yield lower by driving the stock's price higher. Acting before that happens would be better than moving after the fact. Chevron Contrary to a common assumption, the advent of renewable energy and electric vehicles isn't reducing the consumption of fossil fuels like crude oil and natural gas; the need for electricity and transportation is absorbing all of this capacity growth, and then some. Indeed, the International Energy Agency now believes the world's daily usage of oil won't reach its absolute peak until 2050, pushing a previous prediction much further down the road. And even then, they'll only modestly dwindle for the next few decades. Translation: There's still money to be made in the oil business, and there will be for a long while. Enter Chevron (NYSE: CVX) ... one of the oil industry's biggest and...
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