3 Boring but Beautiful Dividend Stocks Perfect for Income-Focused Portfolios

Some investors are built to be day traders. They have keen instincts and a computer that can rival what NASA has at its disposal.

That's not me, though. I like investments that I don't have to worry about or watch like an excitable puppy with access to an espresso machine.

Dividend stocks are more my speed, particularly when paired with a dividend reinvestment plan (DRIP). I can buy shares, flip the DRIP switch on, and forget I even bought the stock.

Boring? Maybe. But boring can be beautiful and very profitable if you know where to look. The three stocks in this article are perfect examples.

Image source: Getty Images

Oil must flow

Despite my and many other investors' bullishness on alternative energy sources, such as wind, solar, or nuclear; oil is still king and is likely to remain so for decades to come. And while it technically pays a distribution and not a dividend, Enterprise Products Partners (NYSE: EPD) is a strong contender to help you profit from oil's continued dominance in the energy sector.

The company operates a network of oil and natural gas pipelines across the United States, ensuring all that black gold gets where it needs to go. At present, the company pays an annual distribution of $2.20 per share for a yield of 6.69% at current prices. And the company has grown that dividend every year for the past 27 years. When a company achieves a growth streak that long, it is very reluctant to break it.

Enterprise is one to buy and hold for the long haul.

Bullish on the ram

Baltimore-based T. Rowe Price Group (NASDAQ: TROW) has been providing financial and investing services to Charm City and beyond since 1937. It turns 89 this year, but its dividend growth streak is almost 40.

At present, the dividend yields 4.77%, and the company has grown it at a rate of 7.13% over the past five years. And with negligible debt of $489.5 million, cash reserves of $3.63 billion, and a net income margin of 28.89%, I don't think its growth streak is in any danger of going anywhere. T. Rowe Price's logo might be a ram, but I'm bullish on it all the same.

Pepsi is more than OK

I'm sure we've all been to a restaurant at some point and ordered a Coke, only to be asked by the server, "Is Pepsi OK?" Whatever your preference for soda might be, PepsiCo (NASDAQ: PEP) is more than OK. And when it comes to which one I want in my portfolio, I prefer PepsiCo to its perennial rival, Coca-Cola (NYSE: KO), any day.

I'm fairly certain you're familiar with what Pepsi does, so I'll skip to the good stuff. Right now, Pepsi pays a dividend of $5.69 per share annually for a yield of 3.89% at current prices. And Pepsi has grown that dividend for 53 years running. Over the past five years, it has grown at a rate of 6.93%.

Coca-Cola's dividend, on the other hand, yields only 2.9% at current prices. And while it has grown that dividend for 63 years, its growth rate in the last five years has been only 4.46%.

With that in mind, we ought to be asking, "Is Coke OK?" Because Pepsi is fine, thank you.

James Hires has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends T. Rowe Price Group. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.