In this article, we will take a look at some of the best consumer staples dividend stocks to invest in.
Consumer staples had a rough 2025 and never managed to keep pace with the broader market as the S&P 500 Consumer Staples index gained about 3% for the year, while the overall S&P 500 climbed more than 16%.
Fidelity said the underperformance came down to where investors chose to focus. Money went toward AI-driven growth stocks, leaving defensive names behind. At the same time, consumer behavior kept shifting, and there was also concern that GLP-1 weight-loss drugs could change demand patterns for certain foods and beverages. As those worries grew, valuations across the sector slipped, and investors started to question whether the weakness was cyclical or something more permanent.
The outlook looks more even going forward. Fidelity expects the sector to benefit from a better investment backdrop, helped by lower interest rates and the easing of several recent headwinds. One key variable is the One Big Beautiful Bill Act, the large tax and spending package passed in July. The firm expects it to lift incomes for middle-income consumers, which could support discretionary spending.
Some of the sector’s specific challenges also appear to be settling. The pullback in alcohol consumption among certain groups, driven in part by immigration-related uncertainty and policy changes, seems to have largely run its course. That reduces the risk of further downside for alcohol-exposed businesses. At the same time, the pace of GLP-1 adoption looks set to slow, easing pressure on parts of the food and beverage space.
Taken together, these shifts point to a steadier environment for consumer staples in 2026, with fewer disruptive forces and a more stable consumer spending backdrop. Given this, we will take a look at some of the best consumer staples dividend stocks to invest in.
Our Methodology:
For this list, we identified dividend-paying stocks from the broader market’s Consumer Staples Index with strong dividend growth track records. After that, we sorted these dividend stocks using Insider Monkey’s proprietary hedge fund sentiment data as of Q3 2025, which means that these stocks are the most popular dividend stocks among the elite hedge funds. The list is ranked in ascending order of the number of hedge funds having stakes in the companies.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
13. The Clorox Company (NYSE:CLX)
Number of Hedge Fund Holders: 37
Dividend Yield as of January 7: 4.87%
The Clorox Company (NYSE:CLX) is among the best dividend stocks in the consumer staples sector.
On January 5, Wells Fargo cut its price target on The Clorox Company (NYSE:CLX) to $108 from $117 and kept an Equal Weight rating on the stock. The move came as Wells updated its models across Beverage, Food, and Home and Personal Care and rolled those assumptions into 2026.
Back in November, Clorox delivered a stronger-than-expected first quarter. Demand for cleaning products remained strong and drove results ahead of forecasts. The company reported adjusted earnings of $0.85 per share, beating estimates of $0.79, based on LSEG data.
Revenue dropped 19% to $1.43 billion, but still came in above expectations of $1.40 billion. Management had already flagged lower shipments for the quarter, as retailers pulled forward inventory ahead of the company’s system upgrade. That dynamic showed up in the numbers, but it was not a surprise.
The Clorox Company (NYSE:CLX) maintained its full-year outlook. The company continues to expect sales to fall between 6% and 10%, with adjusted earnings projected at $5.95 to $6.30 per share. From an income standpoint, Clorox remains a solid dividend payer. The dividend payout ratio sits around 72% of next year’s earnings estimates. That level looks manageable, especially with a strong balance sheet providing a cushion. Management is aiming for 3% to 5% annual sales growth, which should support steady dividend growth for a business with a high ROIC.
The Clorox Company (NYSE:CLX) operates as a multinational manufacturer and marketer of consumer and professional products.
12. Kimberly-Clark Corporation (NASDAQ:KMB)
Number of Hedge Fund Holders: 42
Dividend Yield as of January 7: 5.17%
Kimberly-Clark Corporation (NASDAQ:KMB) is one of the best dividend stocks to invest in.
On January 5, Wells Fargo cut its price target on Kimberly-Clark Corporation (NASDAQ:KMB) to $105 from $110 and kept an Equal Weight rating on the shares. The change reflects updates to Wells’ models across Beverage, Food, and Home and Personal Care as assumptions are pushed into 2026.
The stock dropped more than 22% in 2025. The pressure ties back to real challenges in core categories. Declining birth rates continue to weigh on the diaper business. Kimberly-Clark also lacks the level of diversification seen at Procter & Gamble, which benefits from exposure to soap, deodorant, toothpaste, and other everyday staples.
Management and the board have been searching for growth levers for years. That effort may have reached a turning point with the planned acquisition of Kenvue. This is a major deal by any measure. The price tag stands at $48.7 billion. The acquisition would also reshape the company’s business mix in a meaningful way. If Kimberly-Clark can restore growth at Kenvue, the transaction could improve the income profile of the company, offering dividend investors a stronger yield and better growth over time.
Kimberly-Clark Corporation (NASDAQ:KMB) operates globally, focusing on products and solutions designed to deliver better care.
11. Church & Dwight Co., Inc. (NYSE:CHD)
Number of Hedge Fund Holders: 44
Dividend Yield as of January 7: 1.41%
On January 5, while maintaining an Overweight rating on the stock, Wells Fargo trimmed its price target on Church & Dwight Co., Inc. (NYSE:CHD) to $92 from $100. The change comes as the firm updates its models across Beverage, Food, and Home and Personal Care and carries those assumptions forward into 2026.
Earlier in December, Church & Dwight Co., Inc. (NYSE:CHD) finished a strategic review of its vitamins, minerals, and supplements business. On December 9, the company announced a definitive agreement to sell the VitaFusion and L’il Critters brands to Piping Rock Health Products. The deal includes the brands, related trademarks and licenses, and the manufacturing and distribution sites in Vancouver and Ridgefield, Washington.
The transaction is expected to close before year-end, subject to standard conditions. The VMS business makes up less than 5% of the expected 2025 net sales, so the impact on the overall business is limited. Church & Dwight expects a one-time, after-tax charge of $40 million to $45 million in the fourth quarter of 2025. That figure reflects net proceeds, a non-cash impairment, and costs tied to the transition and transaction.
Perella Weinberg advised Church & Dwight on the deal, with Proskauer Rose serving as legal counsel. Piping Rock worked with Freshfields.
Church & Dwight Co., Inc. (NYSE:CHD) is best known as the leading US producer of sodium bicarbonate, commonly recognized as baking soda. Beyond that core product, the company runs a broad portfolio of personal care, household, and specialty brands that show up in everyday use.
