Are you looking for reliable, long-term investment opportunities? Consider Dividend Kings, the top performers in the stock market known for their consistent dividend payouts. Famous examples include Coca-Cola, Sysco, and Johnson & Johnson. In this post, we’ll examine the track record, current financial health, and future potential of these successful companies.
Founded in 1886, Coca Cola has expanded to offer over 2,800 different products, including popular names like Sprite, Fanta, and Minute Maid. In 2022, Coca-Cola reported annual revenue of $42.34 billion, a 12% increase from the previous year. Additionally, the company saw a 12.6% increase in net income, totaling $9.92 billion, and had earnings per share of $2.28.
Coca-Cola’s strong financial performance can be attributed to its focus on innovation and expansion into new product categories and markets. In recent years, the company has entered the energy drink, tea and coffee, and organic juice markets, among others, allowing it to stay competitive and capitalize on growth opportunities. These efforts, along with a solid dividend yield of 2.8%, have made Coca-Cola a desirable investment for those seeking reliable income streams.
The company’s commitment to innovation, diversification, and maintaining a healthy financial position have established Coca-Cola as a leading consumer beverage company and a smart investment choice. Analysts have pegged fair value at $68 per share, offering upside potential alongside an attractive dividend.
Sysco is a leading food service company that supplies restaurants, schools, and healthcare facilities around the world. Founded in 1969, the company now employs over 71,000 people and operates in North America, Europe, and the Asia-Pacific region.
In 2022, Sysco had revenue of $71.3 billion, a 27.39% increase from the previous year. The company also saw impressive growth in net income, with a 111% year-over-year increase to $1.4 billion, and earnings per share of $2.82, up from $1.02 in 2021. Sysco has a dividend yield of 1.89% and a return on equity of 107.7%.
Sysco’s success is due to its focus on helping food service businesses thrive by providing them with a wide range of products and services. The company sources from thousands of suppliers globally and offers over 350,000 products, including fresh produce, proteins, cleaning supplies, disposables, and equipment.
Its commitment to excellent customer service and staying ahead of industry trends have allowed Sysco to maintain steady revenue growth and provide a reliable income stream for investors. By our calculations, SYY fair value sits at $90.41 per share implying upside of 15.5%.
Johnson & Johnson
Johnson & Johnson is a renowned healthcare company known for its wide range of products and services in the medical, pharmaceutical, consumer health, and beauty industries. Brands like Johnson’s Baby, Listerine, Aveeno, Neutrogena, and Tylenol are household names worldwide. The company was founded in 1886 by three brothers, Robert, James, and Edward Johnson, and currently employs over 140,000 people globally.
In 2022, Johnson & Johnson had revenue of $96.04 billion, a 5.02% year-over-year increase. Net income also increased by 7.14% to $19.15 billion, and earnings per share were $7.18. The company has a dividend yield of 2.47% and a return on equity of 25.89%.
Johnson & Johnson’s focus on research and innovation has allowed it to remain competitive and provide customers with high-quality products. The company has made significant investments in R&D, spending $14.7 billion in 2021 alone, enabling it to develop new products and drive growth across its various businesses.
Its commitment to staying ahead of trends has made it a leader in numerous healthcare markets, making it an attractive investment for those seeking reliable income streams and long-term capital appreciation potential. We see fair value at $204 per share, implying a double-digit percentage upside potential in addition to the appetizing dividend.