3 Millionaire-Maker Dividend King Food Stocks

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Food stocks are generally considered one of the stodgiest segments of the consumer staples sector. But you really should have some reliable companies at the foundation of your millionaire-maker portfolio. Three that you'll want to keep an eye on are Coca-Cola (NYSE: KO), PepsiCo (NASDAQ: PEP), and Hormel Foods (NYSE: HRL). But each one is in a very different situation today. Here's what you need to know to get started.

1. Coca-Cola deserves a spot on your wish list

Coca-Cola has increased its dividend annually for 62 consecutive years, easily placing it among the elite group of Dividend Kings. The current dividend yield is roughly 2.7%, which is well above the S&P 500 index's scant 1.2% yield. It is also just a touch higher than the 2.5% average yield for consumer staples stocks, using the Consumer Staples Select Sector SPDR ETF as an industry proxy. So, in some ways, it looks like Coca-Cola is attractive right now.

The problem here is that Coca-Cola's price-to-sales and price-to-earnings ratios are both above their five-year averages. That hints that the stock, despite what is a relatively attractive yield, is a bit pricey. It is probably best put on the wish list in anticipation of a bear market.

Coca-Cola is the leading non-alcoholic beverage company with a global reach and a portfolio filled with iconic brands. It has a size and scale that suggest it is unlikely to be dethroned anytime soon. When Wall Street turns pessimistic it will probably throw this baby out with the bathwater. If you make up your mind now to buy it, you will increase the chances that you will follow through at a time when it will be very hard to go against the bearish grain.

2. PepsiCo is attractive right now

At first glance, you might think that also buying PepsiCo would be doubling up on the beverage space. That's true to some degree, but PepsiCo's business is so much more diverse than that. Sure, it is No. 2 in beverages, but it is a solid No. 1 in salty snacks via Frito-Lay and it also has a material lead in packaged foods with its Quaker Oats business. A little overlap isn't so bad when it comes with Frito-Lay and Quaker Oats.

What's interesting here is that PepsiCo's price-to-sales and price-to-earnings ratios are below their five-year averages. The stock's 3.2% dividend yield, while above the industry average and the market, is also toward the high side of the company's historical yield range. And, of course, it is a Dividend King, with 52 consecutive annual dividend increases under its belt.