There Are Only a Handful of Nasdaq-100 Stocks That Yield Over 3%. Here's My Top Pick to Buy in September.
The Nasdaq-100 is tech-heavy, but I think this high-yield consumer staples Dividend King is the best income pick.
Overview
Most investors think of the Nasdaq-100 index as a tech index. That's not unreasonable, given that 66% of the index is, indeed, in the technology sector. However, if you are looking for a high-yield stock, tech usually isn't the place to look. Which is why my pick in September is from the just over 2% weighting in consumer staples companies.
PepsiCo (NASDAQ: PEP) has a yield of roughly 4.3%. For reference, the S&P 500 index (SNPINDEX: ^GSPC) yields only about 1%, while the average consumer staples stock yields roughly 2.1%. So that yield is attractive on both an absolute and a relative basis. Here's a quick rundown on why PepsiCo's yield is so high and why I bought it anyway.
Image source: Getty Images.
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Originally published at www.fool.com.