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TheStreet Open House

5 Trending Dividend Payers

Stock quotes in this article: TSM, CTL, KRT, PEP, ITW

PEP Revenue Chart PEP Revenue data by YCharts

PepsiCo (PEP)

Background: Pepsi consists of: Frito-Lay Company, Pepsi-Cola Company, and Tropicana Products. PepsiCo trades a recent average of 4.7 million shares per day with a market cap of $112.7 billion.

52-Week Range: $58.50 - $73.66

Yield: 3%

Pepsi currently has an annualized dividend of $2.15. Over the last five years, the dividend has grown by an average of 11.8% per year. Even with the ups and downs of the market in the last five years, PepsiCo after dividends is a winner.

Over 70% of analysts who follow the company rate PepsiCo a buy or strong buy, and the average analyst target price for Pepsi is $74.40.

The widely followed 50-day moving average is well above the 200-day moving average. The share price is trending higher than the two key moving averages also. Pepsi's chart is a bullish pattern that many trend followers look for.

As a dividend investor, we don't want to buy right before the stock is about to fall. The trailing 12-month price-to-earnings ratio is 17.0, and the mean fiscal year estimate price-to-earnings ratio is 17.8, based on earnings of $4.07 per share this year. The earnings multiple is higher than many companies currently, but Pepsi has consistently increased the top and bottom lines over the last five years.

The payout ratio is well within the ability to continue paying the dividend into the foreseeable future.

Short-sellers are next to impossible to find. Short interest is so low I only include it to demonstrate the smart money is not betting against this company; 1% of the float is short based on the last reported numbers.

CTL Revenue Chart CTL Revenue data by YCharts

CenturyLink (CTL)

Background: CenturyLink is a telecommunications company that provides broadband, voice and wireless services to consumers and businesses in the United States.. CenturyLink trades a recent average of 6.5 million shares per day with a market cap of $26.3 billion.

52-Week Range: $31.16 - $43.43

Yield: 6.86%

CenturyLink distributes$2.90 per share annualized in dividends. Over the last five years, the dividend has increased by an eye popping average of 63.3% per year.

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