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It singled out its new cash-and-carry channel as a source of new customers. This format offers lower prices than regular delivery, with restaurants stocking up on "ready now" products seven days a week. Customers also prefer to pay in cash to avoid expensive credit card fees, thus making this a viable source for Sysco to serve.

The company currently has just a 17% market share with a total addressable market (TAM) of $370 billion, offering ample opportunity to grow its revenue, dividends, and market share. This TAM has more than doubled from just $161 billion in 2000 to its current size, showing the steady growth of the food-service industry over the past 25 years.

Johnson & Johnson

Johnson & Johnson (NYSE: JNJ) is a consumer goods and pharmaceutical giant that specializes in innovative medicine and medical technology. The company has 26 products and platforms that generate more than $1 billion in annual sales, and its portfolio of medicines addresses a wide range of diseases.

Johnson & Johnson reported growing revenue and gross profit over the last three years, as shown below. Net income was affected by the divestment of its Kenvue consumer health division in August 2023, and so the table shows net income from its continuing operations. Free cash flow has also kept marching higher over the same period.

Data source: Johnson & Johnson. Fiscal years end Dec. 31. *Net income from continuing operations.

For the first quarter of 2025, sales increased 2.4% year over year to $21.9 billion. Net income (excluding one-off items) inched up almost 2% to $6.7 billion. The pharmaceutical company also generated a healthy free cash flow of $4.7 billion, up 18.6%. Its strong franchise and consistent free cash flow generation enabled the company to declare its 63rd consecutive annual dividend increase, with its quarterly payout rising 4.8% year over year from $1.24 to $1.30 per share.

Investors can expect to see more growth based on the company's encouraging guidance for 2025. Sales are expected to increase by 2.5% year over year at the midpoint, while adjusted earnings per share are projected to rise by 6.2% year over year.

Management also singled out innovative medicines that are expected to generate billion-dollar sales by 2027 and 2028. Analysts expect Spravato, a nasal spray for adults with treatment-resistant depression, to garner $2.1 billion to $2.3 billion of sales, but internal company estimates put this at 50% higher.

Tremfya, for adults with severe Crohn's disease, has analysts predicting sales of between $5.7 billion to $6.3 billion, but Johnson & Johnson believes that will be 25% higher. The company also has two more drugs in its pipeline that it projects will become billion-dollar products by 2028.

These estimates should provide investors with the confidence that Johnson & Johnson can continue to grow its revenue, earnings, and dividends in the years ahead.

Coca-Cola

Coca-Cola (NYSE: KO) sells around 200 beverage brands worldwide, delivering 2.2 billion drinks daily. Its portfolio includes its namesake soft drink, along with Dasani mineral water and Minute Maid fruit juices.

Coca-Cola has managed to grow its revenue and net income steadily over the years, as shown in the table below. Free cash flow has also been positive all these years, but took a hit in 2024 because of higher working-capital requirements.

Data source: Coca-Cola. Fiscal years end Dec. 31.

The first quarter of 2025 saw mixed results, with revenue dipping by 2% year over year to $11.1 billion. Net income, however, rose 5% to $3.3 billion. Earlier this year, the board of directors approved its 63rd consecutive annual dividend increase, bringing its annual dividend to $2.04 per share, up from $1.94 in the prior year.

For 2025, investors can expect the company to deliver organic revenue growth of between 5% to 6% along with earnings-per-share growth of around 2% to 3%. About $9.5 billion of free cash flow is expected. Management sees vast opportunities for further growth as developed markets only account for 20% of the global population, leaving the remaining 80% open for it to target.

In these developing or emerging markets, almost 70% of the population does not consumer any commercial beverages, offering Coca-Cola a tantalizing opportunity to expand its presence and market share.

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Royston Yang has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kenvue and Sysco. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2026 $13 calls on Kenvue. The Motley Fool has a disclosure policy.

The Smartest Dividend Stocks to Buy With $5,000 Right Now was originally published by The Motley Fool