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In the current low yield environment, stocks with high dividend yields and solid dividend histories are attractive investment opportunities for income seeking investors. In this article, I will discuss three stocks with high dividend yields and solid dividend histories. Also, these three companies have delivered strong financial performance in the past. These three companies are as follow:

PepsiCo Inc (PEP)
With a market cap of more than $100 billion, PEP is one of the largest beverages companies of the world. The company has a strong brand portfolio comprising of snack foods and beverages. The company has annual revenue of approximately $65 billion. In the past, PEP has posted strong financial results. The table below shows the average sales and earnings growth rate of PEP for last three years. Analysts are expecting a decent earnings' growth rate of 4.3% per year for next five years.

3 Years avg. growth rate

Sales

15.4%

EPS

7.9%

Source: Reuters

Besides a strong financial performance, the company has been sharing its successes with its shareholders through dividends. PEP has a dividend yield of 3.1% and over the years has increased quarterly dividends at a healthy rate. Furthermore, the relationship between cash flow from operations (CFO) and dividends indicate that PEP has been comfortable in covering its dividend payments. Given its strong past performance and dividend trend, I believe the company will keep increasing dividends at a decent rate. Given this, I consider PEP a good investment opportunity for dividend-seeking investors.
(click to enlarge)
Source: Ycharts

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Source: Annual Reports

General Mills Inc (GIS)
GIS is a packaged consumer food company with annual revenues of $16.6 billion. It has three segments: Food Services and Bakeries, U.S. Retail and International. The company has posted healthy financial performance in the past. The table below shows the average sales and EPS growth rate of GIS for last three years. A high earnings growth rate of 7.7% per year for next five years is expected by analysts.

3 Years avg. growth rate

Sales

4.6%

EPS

7.4%

Source: Reuters

GIS currently has a dividend yield of 3.2% and has been continuously growing its quarterly dividends in the past. The graph below shows the quarterly dividend trend for the last five years. Also, its last three years CFO and dividends comparison indicates that the company has paid dividends without facing any cash flow problem. Given its strong dividend history and financial performance, I believe the company will keep growing its dividend at a decent pace. Therefore, I believe GIS is a good investment opportunity for dividend-seeking investors.
(click to enlarge)
Source: Ycharts
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Source: Annual Reports

Altria Group Inc (MO)
With annual sales of $17 billion, MO is one the leading tobacco companies in the industry. The company owns several strong brands including Marlboro. MO has a 50% market share in the U.S and has been able to grow its sales and earnings at a decent rate over the years. Analysts meanwhile are expecting a high earnings growth rate of 7.6% per year for next five years. The table below shows average sales and EPS growth rate for the last three years.

3 Years avg. growth rate

Sales

7.2%

EPS

3.5%

Source: Reuters

The company in addition offers a high dividend yield of 5.6% and has a strong dividend history. The graph below shows that the company has increased its quarterly dividends at a good pace. Also, it's CFO and dividend comparison in 2009 and 2011 indicates that MO did not face any problems in covering its dividend payments. However, the 2010 CFO and dividend comparison indicates that the company did undergo some cash problems to cover its dividend. Yet given its high dividend yield of 5.6% and solid dividend history, I believe MO is a good investment opportunity for dividend-seeking investors.
(click to enlarge)
Source: Ycharts
(click to enlarge)
Source: Annual Reports

Source: 3 Solid Dividend Stocks For Income-Seeking Investors