Dividend Kings Coca-Cola and PepsiCo Adapt and Thrive in Changing Consumer Staples Sector
Dividend Kings, companies with a history of 50 or more annual dividend hikes, are proving attractive in the consumer staples sector. Despite a trend towards healthier options, giants like Coca-Cola and PepsiCo remain strong contenders for investors. Both Coca-Cola and PepsiCo have shown resilience in the face of changing consumer tastes. Coca-Cola, with a dividend yield of around 3%, is a favourite among conservative investors. It recently grew its organic sales by 5% in the second quarter. Meanwhile, PepsiCo, with a higher dividend yield of about 4%, appeals to more aggressive investors. Its organic sales increased by 2.1% in the same period. Despite current investor favouritism towards other sectors, these beverage giants have adapted to shifts in consumer preferences in the past and continue to be reliable options. While consumer staples companies may currently be out of favour, Dividend Kings like Coca-Cola and PepsiCo remain attractive for long-term investors. Their strong histories, consistent dividend growth, and ability to adapt make them worthy considerations for a dividend portfolio.
