Why PepsiCo, Cadence Bank And Entergy Are Winners For Passive Income
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Companies with a long history of paying dividends and consistently hiking them remain appealing to income-focused investors. PepsiCo, Cadence Bank and Entergy have rewarded their shareholders for several decades and recently announced dividend increases. Furthermore, these companies offer high dividend yields of over 3%.
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PepsiCo, Inc. (NASDAQ:PEP) is a global leader in snacks and beverages, owning well-known household brands, including Pepsi, Mountain Dew, Gatorade, Lay's, Cheetos and Doritos, among others. The company dominates the global savory snacks market and ranks globally as the second-largest beverage provider behind Coca-Cola. It has diversified exposure to carbonated soft drinks, water, sports and energy drink offerings.
The company has raised its dividends every year for the past 52 years. PepsiCo's most recent dividend hike announcement on July 25 increased the quarterly dividend by 7% to $1.355, which is equal to an annual figure of $5.42 per share. The current yield on the dividend stands at 3.08%.
PepsiCo's annual revenue (as of Sept. 30) stood at $91.9 billion. According to its most recent earnings release on Oct. 8, the company posted a Q3 2024 EPS of $2.31, above the consensus estimate of $2.29 and revenues of $23.32 billion, slightly below the consensus of $23.82 billion.
"Our businesses remained resilient in the third quarter, despite subdued category performance trends in North America, the continued impacts related to certain recalls at Quaker Foods North America and business disruptions due to rising geopolitical tensions in certain international markets. Strong cost controls aided our profitability as we made incremental investments to improve our marketplace competitiveness," said Chairman and CEO Ramon Laguarta.
Check out this article by Benzinga to learn how the market is feeling about PepsiCo stock based on short interest.
Cadence Bank
Cadence Bank (NYSE:CADE) provides commercial banking and financial services. Its products and services include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized and asset-based lending, commercial real estate, equipment financing and correspondent banking services.
The company has raised its dividends consecutively for the last 11 years. As per its most recent dividend hike announcement on Jan. 24, Cadence Bank increased the quarterly dividend by 6.4% to $0.25 per share, equal to $1 annually. The dividend yield on the stock stands at 3.04%.
The company's annual revenue (as of June 30) is $1.3 billion. According to its most recent earnings announcement on July 22, the company posted revenues of $456.98 million and an EPS of $0.69 for Q2 2024. Both came in above the consensus estimates.
For fiscal year 2024, the company expects revenues of $4.60 billion to $4.66 billion and GAAP diluted net income per share in the range of $3.82 to $4.02.
Check out this article by Benzinga for 11 analysts' insights on Cadence Bank stock.
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Entergy
Entergy Corporation (NYSE:ETR) engages in the production and retail distribution of electricity in the United States. It generates, transmits, distributes and sells electric power in portions of Arkansas, Louisiana, Mississippi and Texas, including the City of New Orleans and distributes natural gas.
Entergy raised its dividends every year for the last nine years. As per the company's most recent dividend hike announcement on Oct. 27, 2023, its Board of Directors raised the quarterly dividend by 6% to $1.13 per share or $4.52 annualized, with a yield of 3.39%.
As of June 30, Entergy's annual revenue stood at $12.1 billion. According to the company's most recent earnings announcement on Aug. 1, it posted Q2 2024 revenues of $2.95 billion, below the consensus estimate of $3.08 billion, while the EPS of $1.92 came in above the consensus of $1.76.
PepsiCo, Cadence Bank and Entergy are good choices for investors seeking reliable passive income. Their dividend yields of over 3% and long history of consistent hikes make them attractive to income-focused investors.
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