3 Sleeping dividend shares with a high level to double and buy in September

• An activist investor has just bought $ 4 billion in Pepsico shares.

• Lower energy prices have contributed to a dip in shares of conocophillips.

• Short -term challenges are likely to be temporary for the market leader Watco in the industry.

• 10 shares that we like than Pepsico ›

If the broader stock market rises faster than companies can increase their payouts, the dividend yield of the large indexes will fall. That is exactly what happened to the S&P 500 – which only yields 1.2%.

However, there are numerous dividend shares to buy that offer a lot of passive income than the S&P 500. This is why these fool.com contributors believe that Pepsico (Nasdaq: Pep)” Conocophillips (NYSE: COP)And Watco (NYSE: WSO) Are now great purchases.

Daniel Foelber (Pepsico): Pepsico made the headlines on 2 September after activist Elliott Investment Management has announced a $ 4 billion interest in the snack and beverage giant – so that Elliott got the property of around 2% of the company.

In his presentation of 75 pages, Elliott argued that Pepsi is deep undervalued compared to its strong brands and various international foot in snacks and drinks. Pepsi only has an 18.5 forward price-gain ratio (p/e), which is dirt cheap, since the stock has collected a premium rating with a 10-year median p/e of 26.2.

If it was a card game, Elliott says that Pepsi has a good hand, but it just doesn't play well. And investors have taken note, which is why the share has performed so poorly. As you can see in the next graph, Pepsi has hardly won in five years, while the consumers sector have risen no more than 20% and its pear, Coca-ColaIs even more up.

Activist investors can put pressure on management and even go for administrative seats, which can disorganize the leadership structure of a company. But in the end Elliott's decision to build a position in Pepsi is a voice of trust for value beleggers. Yet it would be a mistake to expect a change at night.

Pepsi's share price ran away for a good reason, because profit growth comes to a halt. The investment thesis is largely focused on what Pepsi can do instead of what it does. So some investors may prefer to follow a wait -and -see approach.

Turnarounds are difficult because there are costs in sentiment costs. Buy a share if it is out of favor, and you could get a price of a price afterwards if the results and expectations of investors improve. However, if the problems persist, the stock can continue to fall or at least produce medium results for a longer period.

Investors who agree with Elliott's reasoning may now want to brag the shares of Pepsi. However, others who have less conviction may want to follow a wait -and -see approach. Anyway, Pepsi offers investors a considerable incentive to keep the share, with a dividend yield of 3.8% and 53 consecutive years of increasing the payment.

Scott Levine (Conocophillips): Because the S&P 500 has risen by more than 15% in the past year, it is clear that investors have been in purchase mode.

However, Conocophillips shares did not have so fierce on the radars of investors. The stock of the oil -supermajor's stock has fallen around 13% in the past year. For passive income-hungry investors, this offers a great option to approach the shares of Conocophillips and its 3.2% progressive dividend.

The deterioration of the share can be disturbing for potential investors, but those who are familiar with the behavior of energy shares are probably less concerned. Since there is a strong correlation between the movements of energy supplies and that of energy prices, the decrease in the oil benchmark of 10.7% since this time last year has decreased the decrease in the shares of Conocophillips much more understandable.

Despite the lower energy prices, management is optimistic about the performance of the company in 2025. The tax benefits of one major nice invoice and lower capital requirements, management forecast in the second half of 2025. Analysts, consequently, project The company will generate about $ 8 billion in the coming years in the coming years, and the Free Cash Flow in the coming years, and the Free Cash Flow in the coming years, generate.

With regard to the dividend, Conocophillips recently demonstrated a conservative approach to reward shareholders. In the past five years, the company has on average a payout ratio of 42.3%, so investors can certainly feel that management will suddenly not risk the financial well -being of the company to reward shareholders during this period of lower energy prices.

As a leading energy supply, Conocophillips is a great option for investors who want to increase their passive income flows, and the recent decline of the share offers a great access point.

Lee Samaha (Watco): It is not often that you get the chance to buy a share such as Watco on a dip and a dividend yield of 3%, so there now seems like a good opportunity to take advantage. Shares fall 16.6% on an annual basis while I write, where the market sells the share in the light of weak conditions in the market for heating, ventilation, air conditioning and cooling (HVACR), in which Watco is active.

The HVACR equipment and partial distributor has long established and successful business model aimed at growing through the acquisition of smaller distributors within the very fragmented distributors market. The acquisitions expand the geographical footprint of Watco, and as soon as the newly acquired companies are integrated into the network of Watco, they benefit from the benefits of scale, new products and technology that Watco offers.

The problem this year comes down to softer than expected income from the new residential hardware store, weakness on international markets and some unfavorable weather patterns in the spring (cold weather tends to dampen the demand for A/C replacement parts).

There is also a transition to a new class coolants in the US, namely A2L, which causes some disruption in the short term for its activities, because Watco handles the inventory and supply chain challenges it brings.

That said, these challenges will probably be temporary. If the most important player in a fragmented market, it would not be surprising to see Watco appear in an even stronger position when the final markets improve and the company contains its way due to the problem with the transition of coolant.

Consider this: Before buying stock in Pepsico:

The Motley Fool Stock Advisor Analyst team has just identified what they believe are the 10 best shares For investors to buy now … and Pepsico was not one of them. The 10 shares that made the cut can produce sample returns in the coming years.

Consider when Netflix made this list on December 17, 2004 … If you have invested $ 1,000 at the time of our recommendation, You would have $ 670,781!* Or when Nvidia made this list on April 15, 2005 … If you have invested $ 1,000 at the time of our recommendation, You would have $ 1,023,752!**

Now it is worth mentioning Stock Advisor's The total average return is 1,052%-A market-renewed outperformance compared to 185% for the S&P 500. Do not miss the latest Top 10 list, available if you become a member Inventor.

See the 10 shares »

*Stock Advisor Return on August 25, 2025

Daniel Foelber has no position in one of the aforementioned shares. Lee Samaha has no position in one of the aforementioned shares. Scott Levine has no position in one of the aforementioned shares. The Motley Fool has positions and recommends Watco. The Motley Fool has a disclosure policy.

3 Sleeping high -interest dividend shares to double and buy in September was originally published by The Motley Fool