Coca-Cola Company s (NYSE: KO) incredible yield traces have found a huge fan among revenue investors. Coca-Cola is about to complete a century – yes, you read the right – consistent dividend payout, having never missed quarterly dividends since 1920. Even impressive is the drinking giant's top-yielding king who has increased the yield every year for 57 consecutive years now .
Nevertheless, Coca-Cola's 3.4% dividend is not among the best. There are several shares that pay better dividends and provide good return potential for income investors. Our Motley Fool contributors have identified three such dividends for you today: Campbell Soup (NYSE: CPB) Duke Energy (NYSE: DUK) and GlaxoSmithKline  (NYSE: GSK) .
High dividend, strong dividend potential
Neha Chamaria (Duke Energy): Coca-Cola is undoubtedly a big dividend stock, but the company's dividend increases have been inconsistent. For example, in the quarter, Coca-Cola raised its quarterly dividend by only 2.6% compared to a 5.4% increase in 2018. Instead, what if you could get a dividend stock that not only pays higher returns than the Coca-Cola Cola, but is also committed to consistent dividend growth?
Duke Energy offers a good 4% dividend today. The tool has paid consistent dividends for 92 years and increased it every year for 13 consecutive years, with the last two increases for 2018 and 2017 coming in at around 4% each. In the long term, Duke believes that annual dividends should grow by 4% to 6%, in line with earnings per share. The dividend growth should be able to support the Duke's dividends of around 4%.
The regulated nature of Duke's business is an important reason why management can confidently present economic goals. As a regulated benefit, Duke's tariff is set by the government. Any interest rate increase is also approved by the Government, provided that the tool can generate the required return on equity and invested capital. Duke plans to invest nearly $ 37 billion in growth capital between 2019 and 2023 to modernize its energy strength, expand natural gas infrastructure and increase the share of renewable energy in power generation.
In short, Duke Energy plans to make sure it can secure interest rate increases on a regular basis in the near future. As revenues grow, there should also be earnings, cash flow and dividends.
Mm-mm-meh, but potentially pretty good
Rich Duprey (Campbell Soup): I'll start by admitting that Campbell soup is a bit of a counterpart stockpile because it's still a lot of uncertainty about their plans and whether they can really grasp. Analysts are skeptical, but I think it is a good case that the soup producer will surprise the pros.
Campbell is under pressure. It carries a lot of debt – about $ 8 billion worth at the end of the last quarter – and very little money at hand (just $ 203 million). It sells on a steep discount business as the paid loved one. It sold its Garden Fresh salsa business for $ 60 million, even though it paid $ 232 million four years ago. It also sells Bolthouse Farms, which it bought in 2012 for $ 1.6 billion, and also lost it. Campbell also sells its international business.
But this is a necessary housecleaning after former CEO Denise Morrison attempted to crush a business by buying Campbell's path to growth. While performing some of the same, with the recent acquisition of Snyder's Lance foods, the food industry is experiencing strong growth, and the soup consumer's surprisingly strong second-quarter fiscal performance report was based on the success of the new acquisitions.
Hedge fund operator Daniel Loeb is the force behind the throne now with two seats on the board, and his guidance is what helps Campbell Soup to stabilize its core business while exploiting the growth opportunities Snyder & Lance offers. 19659002] The stock has jumped 20% of the downturns it hit to start the year, and while some analysts see it as an opportunity to profit, more patient investors can get stuck and let the recovery take shape. With a $ 1.40 per share dividend yielding 3.6%, there is enough reward to bid their time and give this new direction time to work themselves.
A risky high-grade pharma play
George Budwell (GlaxoSmithKline): With a dividend of 5.8%, British Pharma giant GlaxoSmithKline offers one of the most generous payments in health care. Glaxo's attractive returns even give Dividend King Coca-Cola peaks at today's levels. Nevertheless, drugmakers' dividends are not just a good reason to buy their stock. Here's why.
Glaxo can jump off the page as a huge revenue game based on the huge proceeds. But a deeper dive reveals a company in the midst of a great transformation. Over the next three years, Glaxo plans to split into two separate entities: an industry-leading consumer health service and a growth-oriented prescription drug / vaccine business.
Glaxo has kept up with this scheduled breakdown, and has shrouded resources for its fledgling cancer drug portfolio and pipeline of late – highlighted by the $ 5.1 billion acquisition of Tesaro for ovarian cancer treatment Zejula in 2018. The company also sold its Horlicks consumer health nutrition notes to Unilever PLC at the tail end of last year to accelerate this ongoing pivot to drugs and vaccines as its main growth driver in the future.
While these bold movements could stimulate a new era of growth for the company, the future of Glaxo's top-of-the-line program is seriously doubtful. Glaxo's pharmaceutical and vaccine business may generate more top-line growth as a stand-alone unit, but there is no doubt that an outbreak will adversely affect the company's free cash flows. Income investors may therefore be easing with this high-yielding health care system at present.