Despite inflationary pressures and economic woes, consumers continue to spend on “little luxuries.” Those firms operating in the blurred line between consumer staples and discretionary needs are in the sweet spot to make the most of this environment. Our latest Best Consumer Staples Dividend Stock Pick could be the sweetest of them all, with a huge portfolio of brands supporting 50+ years worth of dividend increases!
In the search for the Best Consumer Staples Dividend Stocks, 16 factors are scored across Consumer Staples sector dividend stocks and only the best combination of attractive yield, dividend safety, returns potential and low returns risk receive a Buy rating. Our process is systematic, goal focused and designed for moderate risk investors with a long-term horizon seeking allocation to Consumer Staples.
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Founded as a maker of health drinks back in the early 1900s, our pick has evolved through M&A and organic growth into a monster in the snack food and beverage sector. Each day, more than a billion servings of its products are consumed worldwide. This loyalty to its brands and products continues to generate steady, estimate-beating revenues and profits. It’s also allowed our pick to find growth among new categories and product types.
The best part is shareholders have continued to benefit through steady dividend increases, including its latest 10% jump as well as a hefty buyback program!
This well-covered mega-cap Consumer Products stock is yielding a modest 2.61% with a $4.600/shr forward dividend that is paid quarterly. Its $242.8B market cap ranks 3rd out of 67 dividend stocks in the Consumer Products industry – the largest being Procter & Gamble (PG) at $326.2B – and the firm has $41.5B in debt and $5.3B in cash.
The stock has support from both the sell-side and the buy-side. Analysts are overweight rated on average with expectations for eps to grow a healthy 9% next year. Relative to the 52-week highs, the stock is in line with the S&P 500 at -6% vs -11% and is one of the better-performing Consumer Products dividend stocks, which are -12% as a group.
Year-to-date, the stock has returned -2% vs 7% for the S&P 500 and -2% for the Consumer Products industry.
