Passive income is a sought-after source of financial stability for many investors. Companies that have a long history of paying dividends and consistently increasing them are particularly attractive to income-focused investors. Three companies that stand out in this regard are PepsiCo, Restaurant Brands International, and Fifth Third Bancorp. These companies have a track record of rewarding shareholders with dividend increases and currently offer dividend yields of over 3%.
PepsiCo, a global leader in the beverage and food industry, has been increasing its dividends for an impressive 53 consecutive years. In its most recent dividend hike announcement, PepsiCo raised its quarterly payout by 7% to $1.355, totaling $5.42 annually. With a dividend yield of 3.66%, PepsiCo remains a solid choice for passive income investors. Despite missing revenue estimates in its Q4 2024 earnings report, PepsiCo’s annual revenue of $91.85 billion showcases its strong market presence and stability.
Restaurant Brands International, the parent company of popular fast-food chains like Burger King and Tim Hortons, has raised its dividends every year for the past decade. In its latest dividend announcement, the company increased its quarterly payout to $0.62 per share, amounting to $2.48 annually. With a dividend yield of 3.65%, Restaurant Brands International offers investors a reliable source of passive income. The company’s annual revenue of $8.41 billion and strong performance in its Q4 2024 earnings report further solidify its position as a dividend growth stock.
Fifth Third Bancorp, a prominent bank holding company in the U.S., has increased its dividends for nine consecutive years. With a recent dividend hike bringing the quarterly payout to $0.37 per share, Fifth Third Bancorp offers an annual dividend of $1.48 and a dividend yield of 3.75%. Despite falling short of revenue estimates in its Q4 2024 earnings release, the company’s annual revenue of $8.25 billion and EPS beat demonstrate its resilience and commitment to shareholder value.
Overall, PepsiCo, Restaurant Brands International, and Fifth Third Bancorp are top choices for investors seeking reliable passive income. Their consistent dividend growth history, coupled with dividend yields of over 3%, make them appealing options for income-focused investors. By investing in these companies, investors can benefit from a steady stream of passive income while also potentially enjoying capital appreciation over time.
