Core Viewpoint - PepsiCo is recognized as an elite dividend stock, having extended its dividend growth streak to 54 consecutive years, making it a member of the Dividend Kings group, which signifies companies that have increased their dividends for at least 50 years [2][11] Dividend Growth - PepsiCo's dividend yield is currently around 3.5%, significantly higher than the S&P 500's yield of 1.2%, making it an attractive option for passive income [2] - The company announced a 5% increase in its March dividend payment compared to the previous year and a 4% increase for the June payment, marking its 54th consecutive annual dividend increase [4] Financial Health - In the previous year, PepsiCo generated approximately $12.1 billion in operating cash flow, which comfortably covered its capital expenditures of $4.4 billion and dividend payments of $7.6 billion [5] - The company ended the year with about $9.5 billion in cash on its balance sheet, supporting its strong A+ credit rating [5] Future Cash Returns - PepsiCo anticipates returning $7.9 billion in dividends to investors in 2026, alongside a planned stock repurchase of $1 billion as part of a $10 billion repurchase program through early 2030 [7] Revenue and Earnings Growth - The company expects net revenue growth of 4% to 6% and organic revenue growth of 2% to 4% in 2026, which will support core earnings-per-share growth of 4% to 6% on a constant-current basis [8] - PepsiCo aims for long-term annual organic revenue growth of 4% to 6% and high single-digit earnings-per-share growth on a constant currency basis [9] Strategic Investments - The company is investing nearly 5% of its net revenue in 2026 to support growth, focusing on high-growth areas [9] - PepsiCo made strategic acquisitions, including the purchase of Poppi for $1.7 billion and increasing its stake in Celsius to 11% through a $585 million acquisition of convertible preferred stock [10]

Group 1: Coca-Cola - Coca-Cola is the world's largest beverage company, diversifying its portfolio to include bottled water, fruit juices, teas, sports drinks, energy drinks, coffee, and non-carbonated drinks to counter declining soda consumption [2][4] - The company operates a capital-light business model, selling concentrates and syrups while independent bottling partners handle production, allowing for stable margins and strong cash flow to support a forward yield of 2.6% [3][4] - Coca-Cola's organic revenue rose 5% in 2025, with expectations of 4%-5% growth in 2026, and it is currently valued at 25 times forward earnings, making it a reliable investment in a volatile market [4] Group 2: Altria - Altria, the largest tobacco company in America, faces challenges from declining U.S. smoking rates but mitigates this by raising prices, cutting costs, and repurchasing shares to enhance EPS and support dividends [5][7] - The company is shifting towards smoke-free products, aiming for at least $5 billion in smoke-free revenues by 2028, bolstered by its acquisition of e-cigarette leader NJOY in 2023 [6][7] - Altria offers a forward yield of 6.3% and has raised its dividend 60 times over the past 56 years, with adjusted EPS growth of 4% in 2025 and anticipated growth of 2.5%-5.5% in 2026, trading at 12 times forward earnings [7]

Core Viewpoint - Farmers & Merchants Bancorp reported a record annual net income of $93.6 million for 2025, reflecting strong financial performance and a commitment to returning value to shareholders through increased dividends [2][3]. Financial Performance - The company declared a quarterly cash dividend of $5.10 per share, an increase from $5.05 in the previous quarter, marking the 91st consecutive year of cash dividends and the 61st consecutive year of dividend increases [1][3]. - Annual net income for 2025 was $93.6 million, up from $88.5 million in 2024, with diluted earnings per share at $133.96, a 10.7% increase from $121.02 in 2024 [2]. - For the quarter ended December 31, 2025, net income was $23.8 million, or $34.29 per diluted common share, representing a 10.2% increase over the prior year [2]. - The return on average assets was 1.67% and return on average equity was 15.11% for the year ended December 31, 2025 [2]. Credit Quality and Capital Ratios - The company's credit quality remained strong, with an allowance for credit losses on loans and leases at 2.08%, a net charge-off ratio of 0.05%, and a non-accrual loan and leases ratio of 0.02% as of December 31, 2025 [2]. - The common equity tier 1 ratio was 13.81% and the total risk-based capital ratio was 15.29%, exceeding regulatory requirements for being classified as "well-capitalized" [2]. Recognition and Rankings - F&M Bank was ranked 5th on Forbes Magazine's list of "America's Best Banks" for 2025 and 1st in California [7]. - The company was also recognized as one of the "Best 50 OTCQX 2026," ranking 38 based on total return and average daily dollar volume growth [7]. - In July 2025, Farmers & Merchants Bancorp was named the 3 best-performing bank in the nation across all asset categories by Bank Director's Magazine [8]. Historical Context - Farmers & Merchants Bancorp has a long history of financial stability, having paid dividends for 91 consecutive years and increased dividends for 61 consecutive years, placing it among the "Dividend Kings" [6]. - The bank has maintained a 5-Star rating from BauerFinancial for 35 consecutive years, indicating its strong financial health [5].

Group 1 - The article promotes a subscription service called "The Dividend Dogcatcher" which focuses on dividend stocks [1] - It highlights a live video series called "Underdog Daily Dividend Show" hosted by Fredrik Arnold, aimed at identifying potential investment opportunities [1] - The article encourages audience engagement by inviting comments on favorite or curious stock tickers for future reports [1]

Core Viewpoint - Consistency in dividend growth is a key indicator of a company's long-term performance and stability [1] Group 1: Dividend Kings - Dividend Kings exemplify consistency and have shown exceptional long-term performance, making them attractive investment options [2] - A focus on Dividend Kings that have performed well over the past several years reveals standout companies in this category [2] Group 2: Stock Selection Methodology - A stock screener was utilized to filter and identify companies, resulting in 23 candidates, with a focus on the one with the highest 5-Year Percent Change [3] Group 3: Parker-Hannifin Corp Overview - Parker-Hannifin Corp (PH) is an industrial technology company specializing in motion and control technologies, serving aerospace and industrial markets [6] - The company has transformed its business mix through acquisitions, including the Filtration Group, enhancing its growth profile [7] Group 4: Financial Performance - Parker-Hannifin's stock has increased approximately 250% over the past 5 years and over 867% in the last 10 years, marking it as the best-performing Dividend King in both timeframes [7] - In the latest quarterly financials, Parker reported a 9% year-over-year increase in sales to $5.2 billion, while net income decreased by 11% to $845 million due to higher costs, which is typical during investment periods [8]

Group 1 - Becton Dickinson and Co is highlighted for its strong performance in the medical technology sector, showing resilience amid market fluctuations [1] - Stepan Company is noted for its growth in specialty chemicals, with a focus on sustainable practices and innovation driving its market position [1] - H2O America is recognized for its advancements in water treatment solutions, contributing to environmental sustainability and addressing water scarcity issues [1] Group 2 - The overall market analysis indicates a trend towards increased investment in healthcare and environmental sectors, reflecting changing consumer preferences and regulatory pressures [1] - Companies are adapting to market demands by enhancing their product offerings and focusing on sustainability, which is becoming a key differentiator in competitive landscapes [1] - The analysis suggests that ongoing technological advancements will continue to shape the future of these industries, presenting both opportunities and challenges for investors [1]

Core Insights - PepsiCo offers a higher dividend yield of 3.8% compared to Coca-Cola's 2.8%, and has increased its dividend by 39% since 2021, while Coca-Cola's growth is at 21% [1] - However, Coca-Cola outperforms PepsiCo in earnings growth, profit margins, and perceived dividend safety, making it a more attractive investment [2] Earnings Growth - Coca-Cola reported adjusted earnings growth of 30% last quarter, while PepsiCo experienced an 11% decline in adjusted earnings [2] - Over the past year, Coca-Cola's adjusted earnings growth has been nearly double digits, contrasting with PepsiCo's significant shrinkage [3] Profit Margins - Coca-Cola's profit margin stands at 27.3%, significantly higher than the industry average of 13.4% and PepsiCo's 7.8% [4] - Coca-Cola's profit margin has been increasing, while PepsiCo's has been declining, indicating better pricing power and operational efficiency for Coca-Cola [4] Dividend Safety - Both companies are classified as Dividend Kings, but Coca-Cola's dividend is perceived as safer due to its stronger financial performance [5]

Core Viewpoint - Consumer staples stocks, particularly those that are currently undervalued, present a significant buying opportunity for value investors, especially in light of their underperformance compared to the broader market [1][2]. Group 1: Procter & Gamble (P&G) - P&G experienced a challenging 2025, with a stock value decline of 14.5%, reaching a near three-year low [4]. - The company reported a 1% decline in sales volume and flat organic sales growth, leading to a 5% drop in diluted net earnings per share (EPS) [5]. - P&G has adjusted its fiscal 2026 diluted net EPS growth forecast to a range of 1% to 6%, down from a previous estimate of 3% to 9% [5]. - The company is under new leadership and aims to enhance its value proposition by focusing on volume growth rather than price increases [8]. - P&G boasts a strong dividend yield of 2.9% and has increased its dividend for 69 consecutive years, making it an attractive option for income investors [9][11]. Group 2: Kimberly-Clark - Kimberly-Clark reported a modest 3.2% growth in adjusted EPS and flat adjusted operating profit, with a 1.7% increase in organic sales [12]. - The company is in a downturn but plans to acquire Kenvue to diversify its product offerings, which is expected to enhance its market position [13]. - Kimberly-Clark anticipates achieving $2.1 billion in annual cost synergies from the acquisition within three years [15]. - The company has a dividend yield of 5% and has increased its dividend for 54 consecutive years, making it appealing for value investors [17][19]. Group 3: Comparative Analysis - P&G is considered a higher quality company with a strong brand portfolio and better diversification, while Kimberly-Clark offers a cheaper valuation and higher yield, making it a potential turnaround play [20]. - Both companies are currently facing growth challenges due to a slowdown in consumer spending but continue to generate substantial free cash flow and earnings to support their dividends [20]. - A balanced investment strategy could involve a 50/50 split between both stocks, yielding an average of 4% [21].

Core Viewpoint - The article emphasizes the importance of dividend stocks as a reliable investment option, particularly during varying market conditions, highlighting three companies known as Dividend Kings that are recommended for long-term investment. Group 1: Dividend Kings Overview - Dividend Kings are companies that have increased their dividends for at least 50 consecutive years, indicating a strong commitment to returning value to shareholders [3]. - These companies provide passive income and can offer stability during market downturns while also benefiting from market upswings [2]. Group 2: Abbott Laboratories - Abbott Laboratories has a dividend of $2.52, yielding 2.4%, which is higher than the S&P 500's 1.1% yield [4]. - The company has a diversified healthcare business with four units: medical devices, diagnostics, nutrition, and established pharmaceuticals, providing security against downturns in any single unit [6]. Group 3: Target - Target has faced challenges recently, including a shift in consumer behavior and theft, but is implementing strategies to recover, such as creating an enterprise acceleration office [7][8]. - The company offers a dividend of $4.56, yielding 4.5%, which can provide passive income while the stock potentially rebounds [10]. Group 4: Johnson & Johnson - Johnson & Johnson spun off its consumer health business to focus on higher-growth areas, resulting in a 6% sales increase to over $94 billion last year and an 8% rise in adjusted diluted earnings per share [11][12]. - The company pays a dividend of $5.20, yielding 2.3%, making it a solid choice for passive income [14].

Core Viewpoint - Kimberly-Clark is positioned as a deep value stock for income investors in 2026, especially with its strong dividend yield of 5% and a history of consistent dividend increases [3][9][19] Company Overview - Kimberly-Clark specializes in paper products, including brands like Kleenex, Huggies, and Scott, holding leading market shares in 70 countries [4] - Approximately two-thirds of its sales are generated in North America, with the remainder coming from international markets [4] Financial Performance - In 2025, Kimberly-Clark achieved 1.7% organic sales growth, driven by a 2.5% increase in volume, despite a 0.9% decrease in price [6] - The company reported gross margins of 36%, flat adjusted operating profit, and a 3.2% increase in adjusted earnings per share (EPS) [6] - For 2026, Kimberly-Clark is guiding for 2% organic sales growth and flat adjusted EPS, with a mid-to-high single-digit increase in adjusted operating profit [6] Dividend and Cash Flow - Kimberly-Clark raised its dividend for the 54th consecutive year, indicating a commitment to returning value to shareholders [3][10] - The company's earnings and free cash flow exceed its dividend expense, suggesting that the dividend is sustainable without relying on debt [10] Acquisition Strategy - The acquisition of Kenvue, a consumer health company, is expected to generate $2.1 billion in annual synergies, primarily from cost reductions [12][15] - This acquisition aligns with Kimberly-Clark's strategy to expand its product offerings and cover a broader range of consumer needs [13][15] Market Position and Valuation - Kimberly-Clark's stock is currently trading at 13 times forward earnings, making it an attractive option for value investors [18] - The stock has experienced a sell-off, leading to a higher dividend yield, which is appealing for income-focused investors [9][19]