2 Dividend Kings to Buy Now and 1 to Avoid Despite the Yield
Coca-Cola and Altria are worth buying, but PepsiCo faces more formidable challenges.
Overview
Dividend Kings, or blue chip companies that have raised their dividends annually for at least 50 consecutive years, are usually stable long-term investments. Even as the U.S. experienced six official recessions over the past five decades, these companies consistently grew their earnings and generated enough cash to cover their dividends.
Three of those Dividend Kings are Coca-Cola (NYSE: KO), PepsiCo (NASDAQ: PEP), and Altria (NYSE: MO), which have raised their dividends annually for 64, 54, and 57 consecutive years, respectively. While all three of these stocks might seem like safe places to park your cash in this tumultuous market, I'd only buy two of them while avoiding the other.
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Originally published at www.fool.com.