One of the easiest ways to build wealth is through the ownership of reliable dividend stocks. You can compound your wealth via dividend reinvestment. You can use those dividends to pay for living expenses. And, assuming you have selected a good dividend-paying stock, the business' growth will build wealth for you either way.
Right now, you might want to look at high-yield dividend stocks Coca-Cola (KO +0.58%), General Mills (GIS +1.90%), and Realty Income (O +0.81%) as new additions to your portfolio.
1. Coca-Cola is fairly priced
The S&P 500 index is offering a tiny 1.1% dividend yield. The average consumer staples stock yields 2.7%. Coca-Cola's dividend yield is 2.9%. Notably, Coca-Cola is a Dividend King, having rewarded investors with over six decades' worth of annual dividend increases.
NYSE: KO
Key Data Points
Coca-Cola is one of the world's largest consumer staples companies, boasting a brand portfolio, distribution strength, and marketing skills that match up well with any of its competitors. Its beverage business is industry leading. The stock does not go on sale very often, and it really isn't on sale right now.
However, the stock's price-to-earnings and price-to-book value ratios are both a little below their five-year averages. The price-to-sales ratio is roughly in line with its longer-term average. Essentially, investors are paying a fair to slightly cheap price for a great business. That should be enticing for more conservative dividend investors.
Image source: Getty Images.
2. General Mills is working to get its mojo back
General Mills' dividend yield is 5.2%, which is toward the high end of its historical yield range. The dividend has not been increased every year, but it has trended generally higher for decades. For more aggressive investors, General Mills could be an interesting choice in the food space.
The company has a long history of adapting its brand portfolio to match shifting consumer preferences. Currently, consumers are shifting toward healthier products and becoming more mindful of their spending. General Mills' branded pre-packed foods aren't resonating.
Management is openly stating that fiscal 2026 is an investment year, noting that organic sales fell 2% through the first half of the fiscal year. Periods like this happen from time to time.
NYSE: GIS
Key Data Points
Given General Mills' long and successful history, it seems highly likely that it will realign itself with consumers. And when that happens, the business will start performing better again. If you think in decades, rather than days, this could be a solid long-term buying opportunity with a very high yield.
3. Realty Income is built to be boring
With its 5.7% yield, Realty Income offers a slight change from consumer staples. It is a real estate investment trust (REIT) with a focus on owning retail properties. The average REIT is yielding around 3.9% right now. Realty Income has increased its monthly-paying dividend annually for three decades. Within that streak, it has another one, having increased its quarterly dividend 112 times in a row.
Realty Income is one of the largest REITs in the world. It owns over 15,500 properties spread across the United States and Europe. It also has an investment-grade-rated balance sheet. These factors help the business grow because they enable management to raise capital fairly easily and cost-effectively. Still, Realty Income is a bit of a tortoise, given its large size.
NYSE: O
Key Data Points
That said, it is a foundational dividend stock. Realty Income is the type of reliable dividend investment on which you can layer higher-risk investments with more growth potential. Even the most conservative dividend investor should be able to sleep well at night owning Realty Income.
Three high-yield wealth builders
Coca-Cola, General Mills, and Realty Income have all demonstrated their ability to grow over the long term. That's the foundation for building wealth. Now add in attractive dividend yields, and you can either compound that growth via dividend reinvestment or simply use the income stream to pay for living expenses. You'll likely end up a winner either way.
