3 Top Dividend Stocks to Boost Your Passive Income in April

As an investor focused on generating passive income, I'm always on the lookout for high-yielding dividend stocks that can provide a steady stream of cash flow. With April just around the corner, I'm excited to share three top dividend stocks that I can't wait to buy to boost my passive income: vici properties, pepsico, and genuine parts. These companies offer attractive dividend yields and have a proven track record of increasing their payouts over time, making them excellent choices for income-focused investors.



Vici Properties: A High-Yielding REIT with a Strong Dividend Growth Track Record

Vici Properties is a real estate investment trust (REIT) that specializes in experiential real estate, such as casinos and bowling entertainment centers. The company currently pays a 5.4% dividend yield, which is significantly higher than the S&P 500's dividend yield of around 1.3%. This means that for every $100 invested in Vici Properties, an investor can generate $5.40 of annual dividend income, compared to only $1.30 from the S&P 500.

Vici Properties has a strong track record of increasing its dividend payments. The company has increased its dividend every single year since its formation, with a compound annual growth rate of 7% compared to the 2.2% peer average. This growth is driven by the company's expansion into experiential real estate through sale-leaseback transactions and its conservative financial profile, which enables it to continue expanding its portfolio and dividend payment.

PepsiCo: A Beverage and Snacking Giant with a Long History of Dividend Growth

PepsiCo is a well-known beverage and snacking company that has been increasing its dividend payments for 53 straight years. The company currently yields 3.6%, and it has announced plans to increase its dividend by another 5% starting in June. This consistent growth in dividends indicates that PepsiCo is in a strong financial position to continue increasing its payout, making it an attractive option for income investors.

PepsiCo generates plenty of cash flow, allowing it to pay dividends and reinvest in the business. The company's capital spending has been about $5 billion annually on projects to increase productivity and drive organic growth through product innovation and additional manufacturing capacity. PepsiCo's long-term target is to organically grow its revenue by 4% to 6% per year while expanding its margins to support high-single-digit earnings per share growth. Additionally, PepsiCo uses its strong balance sheet to make acquisitions that enhance its ability to grow, such as buying the fast-growing lower-calorie soda maker Poppi for $1.7 billion and Siete Foods for $1.2 billion. These acquisitions should further enhance its ability to grow its earnings and dividend, making the growth trend sustainable over the long term.

Genuine Parts: A Leading Auto Parts Supplier with a Long History of Dividend Growth

Genuine Parts is a leading auto parts supplier that has been increasing its dividend payments for 69 straight years. The company currently has a 3.5% dividend yield, and it recently hiked its payment by another 3%. This long history of dividend growth and the current high yield make Genuine Parts an attractive option for investors seeking stable and growing income from their investments.

Genuine Parts' business generates lots of cash. The company expects to produce $1.2 billion-$1.4 billion in net cash from operating activities this year and $800 million to $1 billion of free cash flow after capital expenditures. This cash flow is more than enough to cover its dividend, which cost $555 million last year. Genuine Parts also invests heavily in expanding its business, with $1.5 billion invested last year, including $567 million in capital expenses and $1.1 billion in acquisitions. The company has been buying up independent owners of its NAPA Auto Parts stores in key markets, positioning it to grow its earnings to support continued dividend increases.

Conclusion

Vici Properties, PepsiCo, and Genuine Parts are all great dividend stocks that offer high-yielding payouts that they've steadily increased over the years. With more growth likely, I can't wait to buy more shares of this trio in April as I continue marching toward my goal of growing my passive income. These companies have strong financial performance, strategic investments, and conservative financial profiles, making the growth trends sustainable over the long term. By investing in these stocks, income-focused investors can expect to earn a higher return from dividends relative to the stock price, which can be particularly appealing for those seeking regular income. However, it is important to consider the sustainability of these dividends and the overall financial health of the companies.

Ask Aime: What are the risks and opportunities associated with investing in Vici Properties, PepsiCo, and Genuine Parts?