Meet the Dividend King Stock That Yields More Than Quadruple the S&P 500. Here's Why It's a Buy in August.
PepsiCo has a strong commitment to paying dividends.
Overview
Investors looking for dividends will likely be disappointed by the yield of the S&P 500 index. In the wake of its long rally, the broad market index yields a paltry 1%. You calculate any investment's yield by dividing the payout by the investment's price. Hence, when the price grows faster than the dividend, the yield shrinks.
By contrast, in 1982, amid a severe recession, when share prices fell, the index yielded 6.2%. More recently, in January 2009, during the Great Recession, its yield rose to 3.2%.
Details
Still, you can find individual stocks within the index today that have much higher yields as well as upside price potential. PepsiCo (NASDAQ: PEP), which has raised dividends annually for many years, belongs in that category.
Source
Originally published at www.fool.com.