Why I Can't Stop Buying These 3 High-Yielding Dividend Stocks

I deliberation I person an addiction to buying dividend stocks. I emotion collecting the passive income they provide, which I often reinvest into buying further dividend-paying stocks. As my passive income grows, I go much financially independent.

I precocious bought adjacent much shares of PepsiCo (NASDAQ: PEP), Main Street Capital (NYSE: MAIN), and Verizon (NYSE: VZ). Here's wherefore I can't halt buying these high-quality, high-yielding dividend stocks.

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PepsiCo apt needs nary introduction. The planetary snacking and beverage company's portfolio includes iconic brands specified arsenic Pepsi, Gatorade, and Doritos. These brands make durable currency travel to screen the company's 3.8%-yielding dividend, which is three times higher than the S&P 500's output of 1.1%.

The institution has a singular grounds of expanding its dividend. It raised its outgo by different 5% past year, extending its maturation streak to 53 consecutive years. That qualifies PepsiCo arsenic a Dividend King arsenic a institution with 50 oregon much years of yearly dividend increases.

PepsiCo's semipermanent people is to present 4% to 6% yearly integrated gross maturation and high-single-digit earnings per share growth. The institution aims to heighten its maturation complaint done strategical investments. It bought Poppi for $1.7 cardinal past twelvemonth and strengthened its semipermanent strategical concern with Celsius, which included expanding its involvement to 11%. These maturation drivers should alteration the institution to proceed expanding its dividend payment.

Main Street Capital is simply a business improvement company (BDC). It provides indebtedness and equity superior to lower mediate market companies ($10 cardinal to $150 cardinal successful yearly revenue). It besides makes secured indebtedness investments successful mediate marketplace companies ($25 cardinal to $500 cardinal successful revenue) owned by private equity funds. These investments make involvement and dividend income to enactment the company's dividend payments.

The BDC has a unsocial dividend policy. It pays a monthly dividend set astatine a level it tin easy sustain. Main Street Capital has ne'er reduced oregon suspended its monthly dividend. Instead, it has steadily raised its payment, including by 4% implicit the past twelvemonth and by 136% since its IPO successful 2007. This outgo presently yields 4.8% based connected the company's caller stock price.

Additionally, Main Street Capital periodically pays a supplemental quarterly dividend. It has paid the aforesaid quarterly complaint for the past mates of years. When added to its monthly dividend, the BDC has a 6.7% dividend output based connected its annualized payout and stock price. With 2 passive income streams, Main Street Capital is an perfect concern for my strategy.