MCD - Want Passive Income? 2 Dividend Giants to Buy Right Now
2023-10-19 05:48:00 ET
Dividend stocks are fantastic options for fans of passive income. Once you add a few of them to your portfolio, you can sit back and watch the cash payments arrive each quarter, ideally mixed with some market-beating capital gains. Automatically reinvesting the dividends can supercharge your long-term returns as well by helping you accumulate more shares over the years.
But not all dividend stocks are worth owning. Investors should be careful to focus on companies with strong market share positions and ample cash flows, as these factors tend to support a stable and growing dividend. Coca-Cola (NYSE: KO) and McDonald's (NYSE: MCD) are prime examples of these types of businesses, and these two stocks are valued attractively right now.
Investors have put Coca-Cola stock on the discount aisle in 2023 for some dubious reasons. Yes, the beverage giant is seeing weak sales volumes this year as consumers look to save cash in a slowing economy. However, Coke demonstrated its valuable pricing power over the last few quarters as price increases helped extend its industry-leading profitability.
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Want Passive Income? 2 Dividend Giants to Buy Right Now