Apple Inc. (AAPL) and Three Dividend Stocks to Buy on the Dip

Not only is PepsiCo, Inc. (NYSE:PEP) investing in its future, but it’s also rewarding shareholders along the way. In 2013, Pepsi says it will return more than $6 billion to shareholders through share repurchases and dividend payouts. With a dividend yield of 2.6%, Pepsi is certainly one of the stocks to buy in the year ahead. Finally, the company’s status as a Dividend Aristocrat makes this a reliable dividend stock for even the most conservative investors.

3. Walgreen Company (NYSE:WAG)
The next stock to buy on a dip is pharmacy retailer Walgreen. The stock has already had an impressive run this year, with shares up as much as 34%. However, with lost customers returning to Walgreen stores following a resolution with Express Scripts, and strategic investments playing out overseas, Walgreen shares will likely continue higher from here.

Walgreen Company (NYSE:WAG) and pharmacy benefits manager Express Scripts were finally able to reach a new multiyear agreement. As a result, an increasing number of pharmacy customers are filing back into Walgreen’s network. Separately, Walgreen’s stake in European drugstore chain Alliance Boots should help Walgreen increase efficiencies in its global supply chain. Together, these catalysts could lift its stock higher in the quarters to come.

Walgreen Company (NYSE:WAG) joins PepsiCo as a Dividend Aristocrat. What’s more, the company has paid a dividend without interruption for more than 80 years. With a dividend yield of 2.2%, the stock has achieved a compound annual growth rate of about 24% over the last five years. Given the company’s dividend growth history, chances are good that Walgreen will continue to reward investors going forward.

Final thoughts
I strongly believe that these dividend stocks will reward patient investors for many more years to come. For this reason, I plan to add to my positions in Apple Inc. (NASDAQ:AAPL), Pepsi, and Walgreen during dips in their respective stock prices.

The article 3 Dividend Stocks to Buy on the Dip originally appeared on Fool.com and is written by Tamara Rutter.

Fool contributor Tamara Rutter owns shares of Apple and PepsiCo. The Motley Fool recommends Apple, Express Scripts, Google, and PepsiCo. The Motley Fool owns shares of Apple, Express Scripts, Google, Microsoft, and PepsiCo.

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