Most income investors are well-aware of the benefits of dividend investing. Those quarterly checks provide stability and guaranteed returns in an era of high-frequency trading, geopolitical unrest, and volatile markets.
The consumer staples sector in particular is a haven for those who enjoy receiving solid dividend yields. However, while most investors are fully aware of the market’s biggest consumer staples giants, there are a few stocks with much smaller market values, below $15 billion, that might be flying under your radar.
Three great consumer staples companies
Church & Dwight Co., Inc. (NYSE:CHD) manufactures and markets a wide range of personal care, household, and specialty products under the Arm & Hammer brand name, as well as others. The company flies under the wings of its mega-cap consumer staples giant peers, but the company’s solid brands and steady operating performance make it worthy of consideration in its own right.
The company has a spectacular track record of distributing profits to shareholders via dividends. The company recently declared its 449th consecutive quarterly dividend payment.
Of course, this long streak of dividend payments can’t be sustained without the underlying operating performance to back it up, which is an area of strength for Church & Dwight Co., Inc. (NYSE:CHD) that continued during the first quarter. The company reported nearly 13% growth in net sales and 15% earnings per share growth during the first three months of the year versus the same period in 2012.
Hormel Foods Corporation (NYSE:HRL) has a market capitalization of $11 billion and a dividend yield of about 1.6%. Hormel Foods Corporation (NYSE:HRL) was founded in 1891, and has since sold its flagship Spam and Hormel Chili to consumers. However, the company has broadened its product portfolio over the years. The company holds the Jennie-O brand, and earlier this year announced the acquisition of the Skippy peanut butter line.
Hormel Foods Corporation (NYSE:HRL) has reported steady operating performance, indicative of its solid brands and diversified product portfolio. Recently, the company reported fiscal first-quarter sales of $2.1 billion, representing 4% growth year over year. This was largely attributable to a 2% increase in volumes as opposed to the first quarter of 2012.
Moreover, Hormel Foods Corporation (NYSE:HRL) has an enviable dividend track record: the company has provided investors an astounding 47 consecutive years of dividend increases.
Campbell Soup Company (NYSE:CPB) is a $15 billion dollar company with a dividend yield in excess of 2.5%. The company has a long operating history that stretches back more than 140 years. Campbell Soup Company (NYSE:CPB) offers consumers its namesake soup products, as well as a diversified portfolio, including the Pepperidge Farm and V8 brands. Although revenues and earnings were basically flat in 2012 versus 2011, Campbell Soup Company (NYSE:CPB) did come through with a dividend increase.
In February, the company offered investors a solid quarterly report. Sales grew 10% during the second quarter to $2.33 billion. In addition, the company reported that its adjusted earnings per share increased 8% during the first half of the year.