With $5,000 to invest in dividend stocks before the end of November, a strategic split among PepsiCo, Hershey, and Home Depot could yield about $176 annually in dividends. The blended yield of these three stocks stands at approximately 3.5%, with PepsiCo offering the highest yield at 4.3%, followed by Hershey at 3.5%, and Home Depot at 2.8%. Each company has a strong track record of dividend payments, payout ratios ranging from 55% to 75% of free cash flow, and a history of consistent dividend growth.
PepsiCo, known for brands like Doritos and Gatorade, is experiencing strong international growth, with organic revenue up 8% year over year in the third quarter. The company is also focusing on cost reductions to fuel further growth. PepsiCo's dividend yield of 4.3% is backed by 54 consecutive years of annual dividend increases, making it a Dividend King.
Hershey, the owner of iconic brands like Reese's and Kit Kat, is seeing a rebound in profits due to price increases and productivity savings. The company's adjusted gross margin jumped nearly 11 percentage points last quarter, and management expects continued margin improvement in 2027. Hershey's dividend yield is 3.5%, and it has declared its 387th consecutive regular dividend, payable on December 15.
Home Depot, the world's largest home improvement retailer, continues to perform well despite a sluggish housing market. Comparable-store sales increased 1.7% year over year in the fiscal second quarter of 2026, with digital platform sales up 11%. Home Depot's dividend yield is 2.8%, and it has paid 158 consecutive quarterly dividends. The company's scale and reach with professional contractors position it for long-term shareholder returns.