Americans have a notorious sweet tooth, consuming an average of 34 teaspoons of sugar each day, according to the U.S. Department of Agriculture. This staggering statistic adds up to more than 100 pounds of sugar per person every year. While this level of sugar consumption is concerning from a health perspective, it has created a lucrative market for companies that produce sugary drinks, desserts, and snacks. These companies generate billions of dollars in profits annually, with a significant portion of these earnings being distributed to investors in the form of dividend income.
Investing in sugar stocks can be a strategic way to generate passive income. Companies like Coca-Cola, Hershey, and Mondelez offer attractive dividend yields that can help investors satisfy their craving for additional income. Coca-Cola, for example, has a long history of paying dividends and recently delivered its 62nd consecutive annual dividend increase. The company paid out $8 billion in dividends to investors last year alone and currently offers a dividend yield of around 2.7%, more than double the S&P 500’s dividend yield.
Hershey, known for its iconic chocolate brands like Hershey’s, Reese’s, and KitKat, has also been increasing its dividend for 15 consecutive years. The company aims to grow its net sales by 2% to 4% per year and deliver 6% to 8% adjusted earnings-per-share growth. With a dividend yield of 2.8%, Hershey offers investors a sweet income stream that is likely to continue growing over time.
Mondelez, the global snacking giant behind popular brands like Oreo, Milka, and Cadbury, has been increasing its dividend for the past 12 years. The company recently gave investors an 11% raise and now yields around 2.6%. Mondelez aims to grow its revenue by 3% to 5% per year and deliver high single-digit earnings-per-share growth, supported by strong free cash flow.
Overall, the demand for sugary drinks, snacks, and treats in the American market has created a profitable opportunity for investors looking to generate passive income. Companies that produce these products are well-positioned to continue growing their dividends, making them attractive options for income-seeking investors. By investing in sugar stocks like Coca-Cola, Hershey, and Mondelez, investors can satisfy their craving for passive income while benefiting from the consistent returns offered by these dividend-paying companies.
