3 Dividend-Paying Growth Stocks to Double Up on and Buy in September

Core Insights - The article highlights consumer stocks that offer high dividend yields and potential for stock price recovery as economic conditions improve [1][2]. Group 1: Realty Income - Realty Income is known as the "monthly dividend company," maintaining consistent dividend payments since 1994, with a current yield of approximately 5.4% [4]. - The company owns nearly 15,600 properties, with a leasing rate of almost 99%, providing steady income as tenants cover maintenance and other costs [5]. - Despite a stock price decline of over 25% from its all-time high due to rising interest rates, Realty Income's profitability remains strong, with earnings of $4.11 per share in funds from operations (FFO), trading at 14 times its trailing FFO [6]. - The potential for interest rate cuts by the Federal Reserve may allow the company to refinance debt and fund new developments, possibly catalyzing stock recovery [7]. Group 2: Target - Target has experienced a significant decline in stock value, losing nearly two-thirds since late 2021 due to economic uncertainty and supply chain issues [9]. - Despite the challenges, Target has a 54-year streak of annual dividend increases, with a current payout of $4.56 per share, yielding over 4.8% [10]. - The company generated $2.9 billion in free cash flow, exceeding the $2.0 billion spent on dividends, indicating sustainability of its payout [10]. - Target's P/E ratio of 11 is notably lower than Walmart's 38, suggesting that the stock price may already reflect its challenges [11]. Group 3: PepsiCo - PepsiCo, a major player in the beverage and food industry, has faced a 25% decline in stock value over the past two years due to changing consumer preferences [12]. - The company has maintained a 53-year streak of dividend increases, with a current annual payout of $5.69 per share, yielding about 3.75% [13]. - PepsiCo generated nearly $7.1 billion in free cash flow, close to the $7.5 billion spent on dividends, with sufficient liquidity of $8.0 billion to cover payouts [13]. - The company's forward P/E ratio of 18 suggests it is reasonably priced, making it an attractive option for investors seeking income while the company works on product line improvements [14].