3 Stocks With Consistent Dividend Growth & High Yields: PepsiCo, Flowers Foods, And Fidelity National Financial

Companies with a long history of paying dividends and consistently increasing them remain appealing to income-focused investors. PepsiCo, Flowers Foods, and Fidelity National Financial have rewarded their shareholders for decades and have recently announced solid dividend hikes. Furthermore, these companies offer high dividend yields of around 3-4%.

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PepsiCo

PepsiCo PEP is a global leader in snacks and beverages, owning well-known household brands, including Pepsi, Mountain Dew, Gatorade, Lay's, Cheetos, and Doritos, among others. The company dominates the global savory snacks market and ranks as the second-largest beverage provider globally (behind Coca-Cola). It has diversified exposure to carbonated soft drinks, water, sports, and energy drink offerings.

PepsiCo has consistently raised its dividends every year since 1972. According to the company's news release on April 30, its Board of Directors raised the quarterly dividend by 7% to $1.355, equating to $5.42 annually. The current yield on the dividend stands at 3.22%.

The company's annual revenue (as of June 30) is $92.1 billion. According to the company's most recent earnings report, released on July 11, it generated an EPS of $2.28 and revenues of $22.50 billion for Q2 2024. While the quarterly EPS beat the consensus estimates, revenues came in slightly lower than expected. 

"During the second quarter, our business delivered net revenue growth, strong gross and operating margin expansion, and double-digit EPS growth, remaining agile despite facing difficult net revenue growth comparisons versus the prior year, subdued category performance within North America convenient foods and the impacts associated with certain product recalls at Quaker Foods North America," said Chairman and CEO Ramon Laguarta.

Following the revenue miss, several analysts cut their price targets on PepsiCo, as reviewed in this Benzinga article. 

Flowers Foods

Flowers Foods Inc. FLO produces and markets packaged bakery food products in the United States. The company distributes its products, which include fresh bread, buns, rolls, snack cakes, and tortillas, through a direct-store delivery system and a warehouse delivery system and operates bakeries. The key brands are Nature's Own, Whitewheat, Cobblestone Bread, Wonder, Dave's Killer Bread, Canyon Bakehouse, Mrs. Freshley's, and Tastykake.

Flowers Foods paid dividends consecutively for 87 years and increased them consistently for the last 10 years.

According to the company's most recent dividend announcement on May 23, it hiked the quarterly dividend by 4.3% to $0.24 per share, equal to $0.96 annually. Currently, the company's dividend yield is 4.36%.

Flowers Foods' annual revenue (as of March 31) is $5.1 billion. The company is scheduled to report its Q2 2024 earnings on August 8. Consensus estimates currently stand at $1.24 billion and $0.33 for revenue and EPS, respectively.

Like Flower Foods, these two underrated dividend stocks offer high yields.

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Fidelity National Financial

Fidelity National Financial Inc. FNF offers various insurance products in the United States. It offers title insurance, escrow, and other title-related services, including trust activities, trustee sales guarantees, recordings and reconveyances, and home warranty products.

Fidelity National Financial raised its dividends every year for the last 13 years. Its most recently announced dividend increase was at the end of last year. According to the company's news release on Nov. 7, 2023, its Board of Directors hiked the quarterly dividend by 7% to $0.48 per common share, or $1.92 annualized, with a yield of 3.61%.

As of March 31, the company's annual revenue stood at $12.3 billion. As per the company's most recent earnings report, released on May 8, it generated revenues of $3.30 billion and EPS of $0.76 in Q1 2024.

“Together, our businesses delivered a 36% increase in adjusted net earnings over the prior-year quarter. Looking forward, we will prudently manage the Company and maintain a balanced capital allocation strategy focused on growing our business through attractive acquisitions while maintaining a steady return of capital to our shareholders through our quarterly dividend as we await the eventual turn in residential purchase volumes," said William P. Foley, II, Chairman of Fidelity National Financial.

Its upcoming quarterly earnings report is scheduled for Aug. 5, with Wall Street analysts expecting an EPS/revenue of $1.31/$3.2 billion.

To summarize, PepsiCo, Flowers Foods, and Fidelity National Financial are solid investment choices for investors seeking reliable passive income. The offered yields of around 3-4%, combined with their long history of consistent dividend payments and hikes, make them particularly attractive to income-focused investors.

Are You Missing Out On Higher Yields?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider. 

For example, the Jeff Bezos-backed investment platform just launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings. 

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