Beverages & Packaged Foods

Search documents
3 Dividend Stocks That Could Pay Retirees Steady Income for Decades
The Motley Foolยท 2025-10-19 13:15
Core Viewpoint - The article emphasizes the importance of conservative dividend-paying stocks for older investors, highlighting Philip Morris International, PepsiCo, and Enterprise Products Partners as reliable options for generating steady long-term income [1][2]. Group 1: Philip Morris International - Philip Morris International (PMI) is one of the largest tobacco companies, spun off from Altria in 2008, focusing on international markets with higher smoking rates [3]. - Despite declining global smoking rates, PMI's stock has increased nearly 210% since its public debut, with a total return of 608% including reinvested dividends [4]. - PMI has offset declining traditional cigarette shipments by raising prices, cutting costs, and expanding its smoke-free product portfolio, which accounted for 41% of revenue and 42% of gross profit in the latest quarter [5]. - Analysts project PMI's earnings per share (EPS) to grow at a compound annual growth rate (CAGR) of 26% from 2024 to 2027, with a forward dividend yield of 3.7% [6]. Group 2: PepsiCo - PepsiCo is a leading beverage and packaged food company, recognized as a Dividend King with 53 consecutive years of dividend increases, currently offering a forward yield of 3.8% [7]. - The company has adapted to health trends by expanding its beverage portfolio with healthier options and updating its packaged food brands [8]. - Over the past decade, PepsiCo's stock has risen 55%, generating a total return of nearly 110%, with analysts expecting an EPS CAGR of nearly 8% from 2024 to 2027 [9]. Group 3: Enterprise Products Partners - Enterprise Products Partners operates over 50,000 miles of pipeline, generating revenue by charging fees to upstream and downstream companies, insulating it from commodity price volatility [10][11]. - As a master limited partnership (MLP), it offers tax advantages and has consistently raised distributions for 28 years, currently providing a high forward yield of 7.2% [12]. - Analysts expect its earnings per unit (EPU) to grow at a steady CAGR of 4% from 2024 to 2027, with the stock appearing attractive at 11 times next year's EPU [13].