Here are 10 Dividend Stocks worth looking into:
Let’s dive into them and figure out which one is the most interesting.
Snacks & Packaged Foods
🥣 Genreal Mills
🍫 Mondelez
🥤 PepsiCo
Healthcare
🏥 Johnson & Johnson
😷 Medtronic PLC
💊 Merck
Oil & Gas
🛢️ Schlumberger
🛢️ ExxonMobil
🛢️ Chevron
Today we’ll look deeper into each of these companies and have a battle between the contenders in each industry to see who comes out on top.
Sound interesting?
Let’s dive in!
Snacks & Packaged Foods
Let’s meet the contenders:
General Mills
General Mills makes and sells food like cereal, snacks, and baking products.
The business is divided into categories like snacks, breakfast foods, and pet food.
Mondelez
Mondelez makes snacks like cookies, chocolate, and gum.
They have brands like Oreo, Cadbury, and Trident worldwide.
PepsiCo
PepsiCo sells soft drinks like Pepsi, Gatorade, and Rockstar as well as snacks like Lay’s chips.
They divide their business into drinks, snacks, and other foods.
Dividend Info:
Source: Finchat
Revenue Growth
Source: Finchat
Income Growth
Source: Finchat
Let’s Battle
Right away I notice a few things:
The dividend yields are all around 3% - no company has a strong advantage there
None of the companies shows a steady trend in revenue and net income, but General Mills looks the most stable.
The First Elimination
The first company I’d eliminate from this group?
PepsiCo.
The payout ratio is significantly higher than the other two companies.
That means that unless PepsiCo can re-accelerate Net Income, it will be hard to keep growing the dividend at 6% per year.
Pepsi’s biggest challenge:
Pepsi has seen falling sales volumes and has been making up for it with price increases.
Source: Finchat
General Mills VS Mondelez
Which stock will win?
General Mills
Strengths
Strong brands like Cheerios (11% of U.S. cereal market) and Nature Valley (26% of cereal bars)
Diverse revenue streams lead to more stable income compared to PepsiCo and Mondelez
Weaknesses
Vulnerable to health trends, with 52% of sales in cereal, snacks, and convenient foods
Cereal sales are declining ~2% per year
Premium brands may struggle if consumers trade down due to inflation or a weak economy
Dividend growth is less consistent than Mondelez or PepsiCo
Mondelez International
Strengths
Strong brands like Oreo, Cadbury, and Toblerone face less competition from store brands
Strong management simplifies operations, cuts unprofitable brands, and upgrades facilities
Shareholder-friendly policies
$9 billion buyback (announced December)
11% dividend increase (July)
Clear capital priorities: reinvestment, acquisitions, and returning cash to shareholders
Weaknesses
Vulnerable to health trends
Chocolate brands face pressure from rising cocoa prices
Winner: Mondelez
While General Mills offers more stable revenue, Mondelez stands out with:
A stronger balance sheet (Debt/Equity: 0.7 vs. 1.5)
Consistent dividend growth
Better management with a focus on efficiency and shareholder returns
We have one winner so far, but that’s just the warm up match.
The Healthcare and Oil & Gas matchups have some giant companies:
ExxonMobil had over $300 billion in revenue last year
More than all 3 snack companies’ revenues combined
Chevron paid out more than $11 billion in dividends last year
That’s more than the net incomes of all 3 snack companies
Johnson & Johnson spent $16 billion on R&D last year
Nearly double PepsiCo’s net income
Ready for the matchups between some epic contenders?
Let’s go!