2023-04-02 06:16:00 ET
The consumer staples sector is generally considered a reliable performer as it includes frequently purchased products like soap, toilet paper, toothpaste, and deodorant. Conservative investors tend to like the group, broadly speaking. However, dividend investors must be careful not to sacrifice their long-term income streams by focusing too much on current dividend yields. Here's a quick look at three of the leading consumer staples stocks.
Dividend consistency is a hallmark of a great dividend stock. And the pinnacle of success on this front is probably making it onto the Dividend Kings list, which signifies that a company has increased its dividend annually for 50+ years. That's a streak that doesn't happen by accident. Consumer staples icons Procter & Gamble (NYSE: PG) , Colgate-Palmolive (NYSE: CL) , and Kimberly-Clark (NYSE: KMB) all make this highly elite list.
Interestingly, these three companies have material overlap in the products they produce. Kimberly Clark is focused on paper products like diapers, toilet paper, sanitary products, and towels. Colgate-Palmolive makes soap, toothpaste, and cleaning products and has a pet food operation. Procter & Gamble is a mix of both, with soap, cleaning products, toothpaste, and an array of paper products. Although they aren't interchangeable stocks, per se, they operate very similar businesses.
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Looking for Yield and Dividend Growth? This Consumer Staples Dividend King Outshines Its Peers