Coca-Cola, NextEra Energy, and Vici Properties: Strong Stocks

Dividend Focus: Coca-Cola, NextEra Energy, and Vici Properties are highlighted as robust investment options. They offer solid financial standings and consistent dividend growth, appealing to investors seeking reliable income streams.

Date: 28-02-2025

AI Rating: 7

Dividend Increases and Financial Health
Coca-Cola has announced a 5.2% increase in its dividend, marking 63 consecutive years of raises, placing it in the elite category of Dividend Kings. With a current yield of 2.9%, over double the S&P 500's yield, the company demonstrates strong financial health, paying $8.4 billion in dividends last year and generating $10.8 billion in free cash flow, an 11% increase from the previous year. The company targets annual organic revenue growth of 4% to 6% and earnings-per-share growth of 7% to 9%, which should support future dividend increases.

NextEra Energy also presents a solid investment case, anticipating adjusted earnings per share growth at the high end of its 6% to 8% target range through 2027, driven by heavy investments in renewable energy. The current dividend yield is 3.2% and has grown at a 10% compound annual rate over the last 20 years, indicating a robust dividend growth policy that should appeal to income-focused investors.

Vici Properties stands out for its 7% compound annual growth in dividends since its inception, yielding 5.4%. Its portfolio, which includes gaming and entertainment properties, produces stable cash flow, allowing for ongoing dividend increases while maintaining an investment-grade balance sheet. This stability is essential for Vici's future growth potential.

Overall, all three companies illustrate robust dividend policies supported by strong financial performance, which could lead to potential growth in stock prices as investors seek attractive total return opportunities.

Stocks: KO NEE VICI