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Cash In on the Stock Market Sell-Off. 3 Elite Dividend Stocks Now Yielding Around 4% to Buy and Boost Your Income.
PEPPepsiCo(PEP) The Motley Fool·2025-04-13 14:20

Market Overview - The stock market has experienced a sharp sell-off, with the S&P 500 down about 10% since the beginning of 2025, creating opportunities for investors to lock in higher dividend yields as stock prices fall [1][12] ExxonMobil - ExxonMobil's stock has declined over 15% from its peak this year, resulting in a dividend yield of around 4%, significantly higher than the S&P 500's yield of approximately 1.4% [3] - The company increased its dividend payment by 4% earlier this year, marking 42 consecutive years of dividend growth, a feat achieved by only 4% of S&P 500 companies [3] - ExxonMobil generated 34.4billioninfreecashflowlastyear,coveringits34.4 billion in free cash flow last year, covering its 16.7 billion dividend outlay, and maintains a low leverage ratio of 6% with 23.2billionincash[4]Thecompanyaimstoincreaseannualcashflowsby23.2 billion in cash [4] - The company aims to increase annual cash flows by 30 billion by 2030 through cost reductions and investments in high-margin production, supporting future dividend growth [5] PepsiCo - PepsiCo's stock has decreased nearly 10% from its peak this year, leading to a dividend yield of 3.8%, with a planned 5% increase in dividends starting in June, bringing the forward yield to around 4% [6][7] - The company has a 53-year streak of increasing dividends, placing it among the elite Dividend Kings [7] - PepsiCo generated 12.5billioninnetcashfromoperatingactivitieslastyear,exceedingits12.5 billion in net cash from operating activities last year, exceeding its 7.6 billion in dividend payments, and has a strong balance sheet with nearly 9.3billionincashandequivalents[7][8]Thecompanyisusingexcessfreecashflowfororganicgrowthandacquisitions,suchastherecent9.3 billion in cash and equivalents [7][8] - The company is using excess free cash flow for organic growth and acquisitions, such as the recent 1.7 billion agreement to buy Poppi, which supports continued dividend growth [8] Prologis - Prologis has seen its stock value drop nearly 25% this year, resulting in a dividend yield of around 4.3% [9] - The company has increased its dividend for 12 consecutive years, with a 13% compound annual growth rate over the past five years, outperforming the S&P 500 and REIT sector averages [9] - Prologis possesses a strong balance sheet, enabling investments in development projects and acquisitions, and is benefiting from high demand for logistics real estate driven by e-commerce growth [10][11]