The Motley Fool·2026-02-01 15:30Group 1: PepsiCo - PepsiCo has a strong portfolio of iconic brands such as Pepsi, Gatorade, and Doritos, generating durable cash flow to support a dividend yield of 3.8%, significantly higher than the S&P 500's yield of 1.1% [2] - The company has a remarkable record of increasing its dividend, having raised it by 5% last year, marking 53 consecutive years of growth, qualifying it as a Dividend King [3] - PepsiCo's long-term targets include 4% to 6% annual organic revenue growth and high-single-digit earnings per share growth, supported by strategic investments like the $1.7 billion acquisition of Poppi and increasing its stake in Celsius to 11% [5] Group 2: Main Street Capital - Main Street Capital operates as a business development company (BDC), providing debt and equity capital to lower middle market companies, generating interest and dividend income to support its dividend payments [6] - The company has a unique dividend policy, paying a monthly dividend that has never been reduced or suspended, with a 4% increase over the past year and a total increase of 136% since its IPO in 2007, resulting in a current yield of 4.8% [8] - Main Street Capital also pays a supplemental quarterly dividend, leading to an overall annualized yield of 6.7% based on its share price, making it an attractive investment for passive income [9] Group 3: Verizon - Verizon provides mobile and broadband services to over 146 million customers, generating substantial recurring revenue that supports a dividend yield of 6.9% [10] - The company generates approximately $20 billion in free cash flow annually after capital expenditures, easily covering its annual dividend payments of about $11.5 billion [12] - Verizon's recent $20 billion acquisition of Frontier Communications aims to enhance its fiber network, increasing its ability to cross-sell services and improve revenue and margins, supporting continued dividend growth for 19 consecutive years [13]