2 Monster Stocks With Major Passive Income Potential
The consumer sector has a long history of successful dividend stocks. Warren Buffett's Berkshire Hathaway earns an annual dividend return of more than 50% on the original cost of its Coca-Cola position, which dates back to 1988. Procter & Gamble paid its first dividend in 1890! Though some of these names are probably better to hold than buy today, new investors can still find opportunities in consumer dividend stocks.
Moreover, many pay dividends far above the S&P 500 average of 1.6% and offer prospects for further payout hikes. Given current conditions, Target (NYSE: TGT) and Advance Auto Parts (NYSE: AAP) are two dividend growth stocks that could pay off well for income investors.
Target's current annual dividend of $4.32 brings a year return of about 2.6%. The company has increased its dividend for 51 consecutive years, making it a Dividend King. Such a long streak builds in an expectation that dividends will rise yearly. So it was notable that despite this ongoing pressure, Target hiked its payout by 20% this year and 32% in 2021.
Source Fool.com
