2 High-Yield Dividend Stocks to Buy Now
Key Points
PepsiCo just had a solid 7% year-over-year increase in revenue and raised its quarterly dividend by 4%.
Hasbro continues to grow its earnings while offering a generous dividend yield of 3.2%.
Investors can find top consumer goods stocks offering much higher yields than the S&P 500's 1.1%. Despite macroeconomic headwinds, the strongest businesses continue to post solid financial results while paying dividends.
PepsiCo (NASDAQ: PEP) and Hasbro (NASDAQ: HAS) are two solid dividend stocks to consider right now.
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1. Pepsico
PepsiCo increased its quarterly dividend by 4% earlier this year, bringing its streak of consecutive growth to 54 years. At the quarterly payment of $1.48 per share, or $5.92 annualized, the forward dividend yield is 4.3%. This is supported by earnings, with the payout ratio at 75% over the last year.
This is a strong business. PepsiCo has a wide competitive moat based on global distribution and marketing across a portfolio of brands, including Doritos, Lay's, Gatorade, and Mountain Dew, among others.
Inflation has been a major headwind for consumer spending in recent years, but Pepsi just posted its fastest volume sales growth since 2022. It is also executing on productivity initiatives to keep earnings up while meeting demand for more affordable products.
PepsiCo posted a 7% year-over-year revenue increase in the first half of 2026, demonstrating resilience. The solid top-line growth, cost-saving initiatives, and high dividend yield make the stock an excellent buy right now.
2. Hasbro
Hasbro has also shown resilience, with its stock rising 38% over the past three years. It currently pays a $0.70-per-share quarterly dividend. That brings its forward yield to an above-average 3.2%.
While the company has not increased its dividend in recent years, the payout has grown at about a 4% compound annual rate over the past decade, and there are reasons to expect that growth to resume sooner or later. Hasbro paid out roughly half its earnings in dividends over the past year, while demand for the company's top brands remains strong.
Hasbro's Magic: The Gathering continues to show durable long-term growth potential. Revenue for the brand jumped by more than 32% year over year in the second quarter. This franchise has posted growth in 15 of the last 17 years. In the consumer products business, including Star Wars, Marvel, Peppa Pig, and G.I. Joe, Hasbro posted its third consecutive quarter of growth.
Moreover, adjusted earnings per share have improved significantly, from $2.51 in 2023 to $5.94 on a trailing-12-month basis. This year is expected to be the peak for digital investments, which could support continued earnings growth and a return to dividend growth in the next few years.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends Hasbro. The Motley Fool has a disclosure policy.
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