These Top Dividend Stocks Can Help Satisfy Your Thirst for More Passive Income

Buying dividend stocks can be a great way to generate passive income. Many companies offer great payouts.

Coca-Cola (KO -0.56%), Hormel Food Products (HRL -0.98%)AND Four Corners Real Estate Trust Fund (FCPT -0.67%) stand out for their tasty dividends. They offer above-average payouts that have steadily increased over the years, and can help satisfy any investor’s desire for more passive income.

Quench your thirst for growing income stream

Coca-Cola Currently offers dividend yield approaching 3%, which is about twice as much S&P500‘S below 1.5%. The beverage giant also boasts an incredible record of increasing its dividend. Earlier this year, it raised its payout by 5.4%, extending its growth streak to 62 years. in a row. This kept him in the elite group Dividend kingscompanies that have been increasing their dividends for 50 or more years.

The beverage company should be able to extend that streak going forward. Coca-Cola expects organic revenue growth of 4% to 6% annually over the long term, while increasing earnings per share by 7% to 9% annually. In the meantime, it has the financial strength to make acquisitions when attractive opportunities arise. The company’s growing free cash flow should allow it to continue to increase its dividend at a healthy annual rate.

Keeping Income Investors Satisfied

Hormel Foods currently yields 3.5%.lobal brand food business has he never left his investors hungry for income. It recently celebrated its 96th consecutive year of paying dividends to investors. In the meantime, it has increased its payout for 58 years in a row.

The company can afford its high dividend. It generated nearly $860 million in net cash from operations in the first nine months of the year, easily covering about $460 million in dividends. Hormel also has a well-stocked balance sheet, with about $550 million in cash, equivalents, and marketable securities versus less than $3 billion in long-term debt. It has excess free cash flow and the balance sheet flexibility to make accretive acquisitions as opportunities arise, as well as invest in expanding its operations and introducing innovative products. These factors should support long-term earnings growth, allowing Hormel to continue paying a satisfactory and steadily increasing dividend.

Separating the full dividend income plate

Four Corners Property Trust currently yields 4.5%. This real estate investment trust (REIT) focuses on owning properties that are leased to restaurant operators.

Business formed in 2015 when Darden Restaurants biased off portion of its properties to form a REIT. It currently owns more than 1,150 properties leased to more than 150 brands. While Darden Restaurants remains its anchor tenant — 35 percent of rent comes from Olive Garden, 10 percent from Longhorn Steakhouse and 4 percent from other Darden brands — it has constantly diversifying of her portfolio. For example, she recently bought 19 Blooming brands properties, including Outback Steakhouse and Carrabba’s Italian Grill restaurants, for $66.4 million. Bloomin’ Brands is currently the third-largest tenant, with 3.3% of the rent. The REIT has also diversified into other retail sectors, such as automotive service, accounting for 10% of the rent; medical retail, 8%; and other retail, 3%.

Four Corners Properties Trust has been steadily acquiring new income-producing properties. These transactions increase rental income, allowing the REIT to increase its dividend. It has raised its payout every year since 2017, including by 1.5% at the end of last year.

Satisfying the appetite for income

Coca-Cola, Hormel Foods, and Four Corners Property Trust all pay dividends that are more than twice as high as the S&P 500. They also have excellent records of growing their payouts. These companies are great options for those looking to collect more passive income from dividends.