My Smartest Dividend Stock to Buy Today

Investors looking within the consumer staples sector for a quality dividend stock will often choose Coca-Cola (NYSE: KO). And understandably so. Not only are the brands of the beverage industry's biggest name well-established, but its dividend track record speaks for itself. Not only has the company made its quarterly payments like clockwork for decades, it has raised its annual payouts for 63 consecutive years.

If I were going to invest $1,000 in a dividend stock today, however, it wouldn't be Coca-Cola. I'd opt for rival (NASDAQ: PEP) despite its recent woes. In my view, the issues it faces are only short-term challenges that have created a fantastic long-term buying opportunity. They've also pumped up PepsiCo stock's dividend yield to a level that's just too good to pass up.

At a passing glance, these two beverage companies look so similar that they might almost seem interchangeable. Coke is, of course, the world's most popular soda brand, but Pepsi isn't far behind. The Coca-Cola Company also owns Sprite, Minute Maid juices, Gold Peak tea, and several others, while Mountain Dew and Gatorade are part of the PepsiCo family.

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Source Fool.com