Creating passive income is the fundamental aspect of my financial strategy. My goal is that they eventually produce enough repetitive income from investment to cover my basic life expenses.
I try to progress every month to this goal by investing more money in investments that make income like High offering dividends. This March I plan to buy a few including Pepsico (NASDAQ: PEP),, Johnson & Johnson (Nyse: jnj)and Proologis (Nyse: pld). Here’s why I can’t wait to add my position in these three that creates income.
Pepsico currently has 3.5% dividend yield, more than double S & P 5001.3%. Because of this, every $ 100 will invest in PEPSICO supplies about $ 3,50 in the USD dividend revenue, compared to about $ 1.20 dividend annually from the S&P 500 Index Fund.
Drinks and snacks have a phenomenal record of dividend payments. He recently announced that he plans to increase the payment by another 5%, which indicated the 53th year of consecutive annual increase in dividends. Holds a company in an elite group Kings of Dividendcompanies that have increased payment of 50 years or more in a row.
Pepsico is in an excellent position to continue to increase his high payment. Its long -term goal is to organically increase its revenue at a 4% to 6% annual rate, which should stimulate the growth of earnings on high -omission. In the meantime, he has a strong balance sheet that allows him to increase growth rates through acquisition. For example, in recent years he has gained popcorn, collection and siete, adding new sources of growth.
Johnson & Johnson pays a 3%dividend. The health giant also has strong dividend growth. Last year she was 62 in a row, she increased her dividend.
Innovative medicine and medical technology company supports its payment to one of the healthiest financial profiles about. Nearly $ 400 billion in health care (from cap) ended last year with only $ 12 billion net debt ($ 37 billion in debt and $ 25 billion in cash and equivalent). In the meantime, last year he produced $ 20 billion in free cash flow (easy covering its $ 11.8 billion in dividend costs).
Johnson & Johnson retained a very healthy financial profile, even while he invested a lot into his continuous growth. Last year, he spent $ 17.2 billion in research and development to discover and test new therapies and medical technology. He also distributed, announced or committed $ 32 billion for inorganic growth capabilities (including agreed to buy Intracelian therapies for $ 14.6 billion last month). These investments will help increase income and financial flow, allowing Johnson & Johnson to continue to increase their high-prison dividend.
