Consumer discretionary stocks are often overlooked by investors during periods of economic uncertainty. Due to the cyclical nature of discretionary spending, these companies often underperform during recession. However, our latest addition to the Best Consumer Discretionary Dividend Stocks List is a leading home improvement store with nearly 2,200 locations across North America. A 48-year track record of dividend growth should also appeal to income investors.
Consumer discretionary stocks aren’t usually known for their dividend prowess. After all, the sector yields an average payout of 1.9%, which is well below more attractive sectors such as real estate and energy. That being said, consumer discretionary is a highly diverse sector with plenty of opportunity. Our latest pick has improved its online and digital presence and has enjoyed sustainable demand for home improvement solutions.
To make room for the home improvement store, we had to remove a toy manufacturer from the list this week.
You can check out the Best Consumer Discretionary Dividend Stocks List to explore all the stocks.
