Low consumer confidence and poor spending translates to market woes for many companies. Retailers and consumer goods companies have been hurt particularly badly by the recession and sluggish recovery. And as a result, many investors are turning to dividend stocks as an investing opportunity that will add security to their portfolio.
But believe it or not, there are some high yield dividend stocks that exist out there in the consumer arena, and they may be decent buys in anticipation of a recovery. Here are 10 consumer stocks that pay big dividends for long-term investors:
Altria Group (MO)
Market Cap: $47.62 billion
Dividend Yield: 6.13%
Holding company Altria Group, Inc. (NYSE: MO) is best known for its subsidiary Philip Morris USA Inc., manufacturer of cigarettes and smokeless tobacco products. What investors may not know about this tobacco titan is that it is also known for sharing the wealth with its crop of stockholders, paying out regularly increasing quarterly dividends since 1928. With the current dividend yield at 6.1%, and shares on an upward trend over the past six months, MO stock is certainly worth a second look. MO stock is up +16% year-to-date – significantly better than the broader market.
Coca-Cola (KO)
Market Cap: $129.61 billion
Dividend Yield: 3.10%
Iconic beverage manufacturer and distributor Coca-Cola Company (NYSE: KO) has managed to expand it empire across the globe in its 120+ year history. Along with its celebrated product lines, KO stock has been equally as popular with investors thanks to yearly dividend rewards since 1893. KO earnings per share this fiscal year are projected to be the highest seen in years, and the dividend rate is at $1.76 per share. Coca-Cola has been performing well this summer and the future is looking bright for this dividend winner. Shares of KO stock are up +5% in the last three months.
General Mills (GIS)
Market Cap: 22.96 billion
Dividend Yield: 3.10%
Branded consumer foods giant General Mills Inc. (NYSE: GIS) is a household favorite with its beloved brands like Betty Crocker and Häagen-Dazs. Looking at GIS’s market performance over the past year, it is becoming clear why investors have developed an appetite for this stock and its regular dividend payments since 1898. Shares are up +22.27% from this time last year and the $1.12 annual dividend rate per share marks an increase from recent years.
Heinz (HNZ)
Market Cap: $14.78 billion
Dividend Yield: 3.80%
Known to hotdog and hamburger lovers the world over for its famous ketchup, H.J. Heinz Company (NYSE: HNZ) has been proving to investors that it can withstand turbulent market conditions as shares are up nearly +10% year-to-date. HNZ is keeping its shareholders optimistic with an annual dividend yield of 3.8% and market performance which has topped analyst expectations each quarter for the past year.
Kellogg (K)
Market Cap: $19.34 billion
Dividend Yield: 3.1%
Kellogg Co. (NYSE: K), incorporated in 1922, is a leading producer of ready-to-eat cereal. Kellogg shares have been on a slight decline for the past few months but investors still have this stock on their radar. Shareholders have been treated to an annual dividend rate that has risen for two consecutive years with a current yield of 3.1%.
Kimberly-Clark Corporation (KMB)
Market Cap: $26.57 billion
Dividend Yield: 4%
Kimberly-Clark Corporation (NYSE: KMB) is a global health and hygiene company focused on product innovation and building its personal care line with brands like Kleenex, Cottonelle and Huggies. Its current dividend rate per share is $2.64, an increase from $1.96 in 2006. This is not surprising as KMB has boosted dividends for decades now and EPS estimates show that trend likely continuing through next year. Keep an eye on Kimberly-Clark stock, which is up +7% since early July.
Kraft (KFT)
Market Cap: $51 billion
Dividend Yield: 3.9%
As the largest confectionery, food and beverage corporation headquartered in the United States, Kraft Foods Inc. (NYSE: KFT) is best known for bringing consumers names like Maxwell House, Oscar Mayer, and Jell-O. KFT stock is up +7.58% since the beginning of 2010 and the company posted better than expected results on its Q2 earnings. The recent acquisition of UK candy maker Cadbury helped boost KFT shares and there is no doubt that investors are sweet on the 3.9% annual dividend yield.
Lorillard Inc. (LO)
Market Cap: $11.58 billion
Dividend Yield: 5.3%
Lorillard Inc. (NYSE: LO), the nation’s oldest tobacco company, is known for its Newport, Kent, and Old Gold brand cigarettes. Like Altria Group, Lorillard is another company that is not just blowing smoke when it promises investors a payday. Having distributed dividends since 2002, LO has increased shareholder payments on amount per share significantly over each of the past three years. Add to that the fact that Lorillard has outperformed EPS estimates for three consecutive quarters, and an intriguing dividend stock starts to emerge in LO.
Philip Morris (PM)
Market Cap: $96.35 billion
Dividend Yield: 4.4%
Philip Morris International (NYSE: PM) is the world’s largest publicly traded manufacturer and marketer of tobacco products, best known for its Marlboro brand. PM stock has fared much better than the broader markets for the past three months, with shares up +16% since May. Dividends continue to increase since they were first paid in 2008 and the current rate per share is $2.32, rounding out to an annual yield of 4.4%.
Procter & Gamble (PG)
Market Cap: $171.13
Dividend Yield: 3.1%
Proctor & Gamble’s (NYSE: PG) products are sold in over 180 countries worldwide and some of the more recognizable brands include Duracell, Gillette, and Pampers. While shares have been following a gradual downward trajectory for the past few months, investors can take solace in the fact that PG has been delivering dividends with regular increases in value each year.
The One ETF to Own Now. Louis Navellier’s new profit guide reveals the hottest ETF to buy now, plus details his breakthrough new strategy designed to help you lock in short-term gains from ETFs in sectors just heating up, and then when those sectors are on fire, grab money-doubling profits from the fastest-moving individual stocks. Get your FREE copy here!
