Got $1,000 to Invest? Skip Coca-Cola and PepsiCo. This 4%-Yielding Dividend Stock Could Deliver a 160% Return in 10 Years.
Coca-Cola (NYSE:KO) and PepsiCo (NASDAQ:PEP) are two of the most recognizable dividend stocks. Both are Dividend Kings , as companies with over 50 years of annual dividend increases. They also currently offer higher yields than the average stock. However, their current valuations and relatively modest earnings growth prospects could limit their returns over the next decade. Investors looking for a better combination of income and growth might want to consider another familiar food company: McCormick (NYSE:MKC) . It currently yields more than 4%, and its transformative acquisition of Unilever 's (NYSE:UL) food business could help grow a $1,000 investment to around $2,600 over the next decade, a 160% return. That's higher than the projected returns of both Coke and Pepsi . Image source: Getty Images. Continue reading