Dividend Watch: 3 Companies Boosting Payouts

AFL PEP AWK

Everybody loves dividends, as they provide a passive income stream, limit drawdowns in other positions, and provide more than one way to profit from an investment.

And when considering dividend-paying stocks, those with a history of consistent payouts are prime considerations, reflecting their commitment to shareholders.

Recently, three companies – Aflac (AFL - Free Report) , American Water Works (AWK - Free Report) , and PepsiCo (PEP - Free Report) – have all announced a boost to their quarterly payouts. For those interested in income, let’s take a closer look at each.

Aflac

Aflac is an American insurance company and a massive supplier of supplemental insurance within the U.S. The company announced a sizable 19% boost to its quarterly payout, bringing the quarterly total to $0.13 per share.

Perhaps to the surprise of some, AFL shares have tracked the S&P 500 almost to a tee over the last decade, gaining 240%.

American Water Works

American Water Works provides essential water services to millions of customers. The company recently announced an 8% boost to its quarterly payout, bringing the total to $0.76 per share.

Analysts have raised their earnings expectations across the board, with the company also recently confirming current-year guidance.

PepsiCo

PepsiCo is the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. The company unveiled a 7% boost to its payout, bringing the quarterly total to $1.35 per share.

Investors stepped up post-earnings following its latest print, with PEP shares moving higher and adding nearly 4% over the last month compared to the S&P 500’s 3.2% decline.

Bottom Line

Targeting dividend-paying stocks is an excellent strategy that investors can deploy.

Dividends soften the blow from drawdowns in other positions, provide more than one way to reap a return from an investment, and allow maximum returns through dividend reinvestment.

And all three companies above – Aflac (AFL - Free Report) , American Water Works (AWK - Free Report) , and PepsiCo (PEP - Free Report) – have recently boosted their payouts.

For those seeking a reliable income stream, all three deserve serious consideration.

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