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.
10. The Estée Lauder Companies Inc. (NYSE:EL)
Number of Hedge Fund Holders: 45
Dividend Yield as of January 7: 1.33%
On January 5, Wells Fargo raised its price target on The Estée Lauder Companies Inc. (NYSE:EL) to $111 from $95 and kept an Equal Weight rating on the shares. The update reflects changes to the firm’s models across Beverage, Food, and Home and Personal Care as assumptions are pushed into 2026.
That same day, Raymond James took a more bullish view. The firm double upgraded Estée Lauder to Strong Buy from Market Perform, set a $130 price target, and added the stock to its Analyst Current Favorites list. Analysts described Estée Lauder as a top pick for 2026, noting that the turnaround is moving from a narrative phase into execution. In their view, FY25 marked the earnings low point. Improving US market share and better category growth in China are expected to support steadier and faster sales and profit growth.
On December 4, the company’s CEO outlined the broader strategy. The focus is on expanding market share and lifting sales by developing new brands, reaching younger consumers worldwide, and tailoring products to local preferences across cultures.
Speaking at the Reuters NEXT conference in New York, Chief Executive Officer Stéphane de La Faverie said the company sees the rising global middle class as a key growth driver through 2030. That group sits at the center of the company’s long-term plans.
Estée Lauder, still in the middle of a turnaround, is also working to rebalance growth by leaning more into the Americas and emerging markets. That shift is not meant to come at the expense of China, even as Chinese consumers have pulled back spending in recent years, he added.
The Estée Lauder Companies Inc. (NYSE:EL) manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide.
9. The Hershey Company (NYSE:HSY)
Number of Hedge Fund Holders: 46
Dividend Yield as of January 7: 3.04%
The Hershey Company (NYSE:HSY) is among the best consumer staples dividend stocks to invest in.
On January 7, Piper Sandler upgraded The Hershey Company (NYSE:HSY) to Overweight from Neutral and raised its price target to $213 from $193. The call reflects easing cocoa costs and the removal of cocoa tariffs, which the firm says give Hershey “significant flexibility” to reinvest in the business and grow earnings ahead of its long-term algorithm. Analysts believe Hershey is positioned to deliver sales and earnings growth above that algorithm in 2026.
Back in October, Hershey raised its full-year sales and profit outlook after reporting stronger-than-expected quarterly results. Demand held up well for higher-priced chocolates and snacks, giving management more confidence in the outlook. The company now expects 2025 net sales growth of about 3%, up from its earlier target of at least 2%. It also lifted the low end of its adjusted earnings forecast to $5.90 per share from $5.81.Sales benefited from an expanded lineup of healthier, zero-sugar products, along with solid momentum across chocolate, sweets, and mints. In North America, Salty Snacks volumes rose 11% year over year, driven by brands like SkinnyPop and Dot’s Pretzels. Prices in that category fell 1% during the quarter, which helped support volume growth.
The picture looked different in the core North America Confectionery. Volumes slipped 1%, while prices rose 7%, reflecting a more price-driven approach in that part of the business.
The Hershey Company (NYSE:HSY) operates as a snacks company with three main segments: North America Confectionery, North America Salty Snacks, and International.
8. Lamb Weston Holdings, Inc. (NYSE:LW)
Number of Hedge Fund Holders: 47
Dividend Yield as of January 7: 3.77%
Lamb Weston Holdings, Inc. (NYSE:LW) is among the best dividend stocks to invest in.
On December 23, Barclays cut its price target on Lamb Weston Holdings, Inc. (NYSE:LW) to $55 from $68 and kept an Overweight rating on the shares. The firm acknowledged investor frustration after the company posted a first-half fiscal 2026 EBITDA beat without raising guidance. Even so, Barclays said the broader french fry industry backdrop remains “bright,” and the 26% selloff in the stock that followed was overdone.
A few days earlier, on December 18, Lamb Weston Holdings, Inc. (NYSE:LW) said it was holding its full-year sales outlook steady for the second time this year. That came despite the company easily beating quarterly expectations. Analysts at Jefferies noted that reaffirming guidance after such a beat points to a softer second half than the market had anticipated.
Consumer behavior is part of the story. Ongoing inflation and trade uncertainty have pushed people to cut back on non-essential spending, including eating out. That has reduced traffic at restaurants, a key demand driver for frozen potato products. International sales rose 4% year over year in the second quarter. In North America, which generates most of the company’s revenue, sales were flat at $1.07 billion. The company also faces tariff risk tied to imported inputs such as palm oil, even as prices for other raw materials, including potatoes, have eased.
Lamb Weston kept its annual revenue forecast at $6.35 billion to $6.55 billion. The midpoint of that range sits below the $6.52 billion consensus estimate, based on LSEG data. For the quarter ended November 23, the company reported revenue of $1.62 billion, topping expectations of $1.59 billion. Adjusted earnings came in at 69 cents per share, ahead of the 65-cent estimate.
Lamb Weston Holdings, Inc. (NYSE:LW) operates as a global producer, distributor, and marketer of value-added frozen potato products.
7. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 48
Dividend Yield as of January 7: 5.56%
General Mills, Inc. (NYSE:GIS) is among the best dividend stocks to invest in.
Wells Fargo trimmed its price target on General Mills, Inc. (NYSE:GIS) to $49 from $51. The firm kept an Equal Weight rating on the stock. The adjustment came as the firm rolled multiple models together across beverages, food, and household and personal care, prompting updated targets that stretch into 2026. The change was reiterated in a January 5 note, again citing the broader model aggregation as the main driver rather than a company-specific shift.
Earlier, on December 17, General Mills, Inc. (NYSE:GIS) posted second-quarter results that beat expectations on both sales and profit. Demand stayed resilient as cost-conscious consumers continued to eat more meals at home instead of dining out. That trend supported sales of pantry staples and breakfast items, including brands such as Pillsbury.
Consumer sentiment in the US showed some improvement in early December, though spending behavior remained cautious. Elevated prices and uncertainty around the labor market kept shoppers focused on home-cooked meals. CEO Jeff Harmening described the quarter as a “volatile operating environment,” while also noting “improved momentum” through the first half of the year.
General Mills, Inc. (NYSE:GIS) produces and sells a wide range of branded food products, distributing them through retail channels in the US and international markets.
6. Mondelez International, Inc. (NASDAQ:MDLZ)
Number of Hedge Fund Holders: 50
Dividend Yield as of January 7: 3.70%
Mondelez International, Inc. (NASDAQ:MDLZ) is among the best dividend stocks to invest in from the consumer staples sector.
On January 8, TD Cowen analyst Robert Moskow lowered the firm’s price target on Mondelez International, Inc. (NASDAQ:MDLZ) to $62 from $68 and kept a Buy rating on the shares. The move was part of TD Cowen’s broader 2026 outlook for consumer staples. The firm expects a “challenging” year for large-cap names, with volume growth unlikely to rebound meaningfully from the negative 0.9% seen in 2025 and pricing remaining “muted.”
Mondelez operates through several core segments built around biscuits, chocolate, gum, and candy. Each category carries a deep bench of established brands that continue to anchor the business. Cocoa costs remain a major headwind. The company has said unprecedented cocoa inflation could cut adjusted earnings per share by as much as 15% in 2025. At the same time, Mondelez is still operating from a position of financial strength. Its geographic reach and brand portfolio offer some insulation as economic uncertainty builds.
The dividend remains a steady part of the story. Mondelez International, Inc. (NASDAQ:MDLZ) has raised its payout every year for more than a decade, with the yield sitting near 3.7% as of January 7.
The company also benefits from broad brand recognition. Its lineup includes Cadbury, Chips Ahoy!, Oreo, Philadelphia, Ritz, and Wheat Thins, among many others. Mondelez sells its products in more than 150 countries, giving it scale that few peers can match.
5. Dollar General Corporation (NYSE:DG)
Number of Hedge Fund Holders: 54
Dividend Yield as of January 7: 1.65%
Dollar General Corporation (NYSE:DG) is among the best dividend stocks to invest in.
On January 5, Bernstein raised its price target on Dollar General Corporation (NYSE:DG) to $150 from $141 and kept an Outperform rating. From a macro standpoint, the firm expects middle- to high-income consumers to be in a stronger position in 2026. Persistent inflation and a cooling labor market have continued to pressure the real spending power of lower-income shoppers. At the same time, incremental tax refunds tied to the OBBBA are expected to flow more heavily toward middle- and high-income groups, Bernstein said.
Bank of America analysts also see room for Dollar General Corporation (NYSE:DG) to gain traction, especially as larger-than-expected tax refunds could support results in the first quarter. In a January 2 report cited by CNBC, the bank said it is leaning toward stocks trading at fair value or at a discount, even as the S&P 500 becomes more expensive. In a recent research note, BofA pointed out that many stocks are now trading at a premium, making attractive opportunities harder to find. The bank said Dollar General’s efforts to streamline operations and rein in inventory are starting to show results. Those changes should support margins and lift the bottom line in the coming quarter. BofA has a Buy rating on the stock with a $160 price target. Shares are up more than 100% over the past 12 months.
Dollar General Corporation (NYSE:DG) operates as a discount retailer, selling a mix of consumables, seasonal goods, home products, and apparel.
4. Colgate-Palmolive Company (NYSE:CL)
Number of Hedge Fund Holders: 56
Dividend Yield as of January 7: 2.56%
Colgate-Palmolive Company (NYSE:CL) is among the best dividend stocks to invest in.
On January 7, Piper Sandler upgraded Colgate-Palmolive Company (NYSE:CL) to Overweight from Neutral and raised its price target to $88 from $82. The firm said the company saw continued softness in Q4, but that weakness is already reflected in the stock. Piper believes Colgate’s growth can pick up in 2026. The analyst also pointed to early signs of improvement in emerging markets. If that momentum builds, Colgate’s current valuation looks attractive, Piper said. The firm also likes Colgate’s lower reliance on the “stretched U.S.,” given its exposure to emerging economies.
Back in October, Colgate cut its annual sales forecast, signaling that rising economic uncertainty was starting to curb spending on higher-priced products. That pullback showed up even in everyday categories like oral and personal care. The company has raised prices in most markets to offset the impact of US tariffs, a move that has pushed some consumers toward cheaper options. Prices increased 2.3% in the third quarter, while volumes fell 1.9% from a year earlier.
CEO Noel Wallace said on the post-earnings call that consumers remain relatively weak across North America. He noted that discount-seeking is rising, Hispanic traffic is still down, and US household products performance in September came in softer than expected and weaker than prior months. Colgate-Palmolive Company (NYSE:CL) also flagged pressure in Canada tied to the “Buy Canadian” movement, along with weaker demand in Colombia, Central America, and India. The company continues to expect roughly $75 million in tariff-related costs. It imports raw materials such as vitamins and amino acids and manufactures toothpaste for the U.S. market in Mexico.
Colgate-Palmolive Company (NYSE:CL) is positioned as a growth company, with operations centered on Oral Care, Personal Care, Home Care, and Pet Nutrition.
3. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 68
Dividend Yield as of January 7: 4.07%
PepsiCo, Inc. (NASDAQ:PEP) is among the best dividend stocks in the consumer staples sector.
On January 6, PepsiCo, Inc. (NASDAQ:PEP) shared plans for a multi-year collaboration with Siemens and NVIDIA aimed at modernizing its plants and supply chain through digital twin technology and AI. The company described the effort as an industry first, with a global consumer packaged goods business using digital twins to rethink how manufacturing and warehousing sites are tested and planned. Early pilots are already running in the US.
Demand for production and distribution capacity keeps climbing, and PepsiCo is responding by leaning into AI-driven simulations and digital design tools. The goal is to rework its existing facilities rather than rely on traditional expansion, which can be slow, expensive, and hard to scale when consumer needs are changing. Ramon Laguarta, Chairman and CEO of PepsiCo, made the following statement:
“The scale and complexity of PepsiCo’s business, from farm to shelf, is massive—and we are embedding AI throughout our operations to better meet the increasing demands of our consumers and customers. Our work with Siemens and NVIDIA will help accelerate our continued journey of becoming a future-fit company, operating with agility and foresight.”
PepsiCo, Inc. (NASDAQ:PEP) is shifting toward a digital-first planning model. Teams are using physics-based digital twins and AI agents as co-design partners, testing and refining layouts on screen before committing to physical builds. It’s a way to spot issues early and move faster with more confidence.
As part of the rollout, PepsiCo is using Siemens Digital Twin Composer, built on NVIDIA Omniverse libraries, to simulate upgrades at US facilities. The company plans to take this approach global over time.
PepsiCo, Inc. (NASDAQ:PEP) is one of the largest names in food and beverages, producing and selling a wide range of snacks, drinks, and convenient foods under many well-known brands.
2. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 88
Dividend Yield as of January 7: 0.56%
Costco Wholesale Corporation (NASDAQ:COST) is among the best dividend stocks to invest in.
Mizuho sees Costco’s recent pullback as overdone. The bank added the wholesale retailer to its top picks list and upgraded the stock to Outperform from Neutral. It also raised its price target to $1,000 from $950.
Costco Wholesale Corporation (NASDAQ:COST) shares fell about 6% in 2025, while the S&P 500 gained more than 16%. Mizuho said that the gap looks concerning at first glance, but it is not unusual for Costco. The firm pointed back to mid-2017, when the stock also pulled back as store traffic ran hot and membership growth began to slow. That period was followed by a reacceleration across key metrics once unit growth settled, analyst David Bellinger wrote. He further made the following comment:
“Shares have corrected ~20% on concerns that both membership and comp sales growth are slowing as part of some underlying change within the COST model. We push back with: 1) A proprietary store-level analysis indicating roughly half of recent U.S. warehouse openings are ‘fill-ins,’ siphoning demand from high-volume locations and therefore temporarily weighing on membership growth; 2) Trade-up activity is accelerating with Q1 premium member adds 2-3x that of total membership; 3) Domestic renewal rates remain exceptionally high at > 90% and above the 10-year running average.”
Bellinger said current investor worries are understandable, but they largely come down to “having arguably too much consumer demand.” He also highlighted Costco’s wage growth, which is beginning to normalize after a strong stretch. Another potential catalyst could be ahead, with the analyst pointing to the possibility of a special dividend.
Costco Wholesale Corporation (NASDAQ:COST) operates membership-based warehouses and e-commerce platforms, offering both national brands and private-label products across a wide range of categories.
1. Walmart Inc. (NASDAQ:WMT)
Number of Hedge Fund Holders: 104
Dividend Yield as of January 7: 0.82%
On January 5, Bernstein raised its price target on Walmart Inc. (NASDAQ:WMT) to $129 from $122 and kept an Outperform rating. From a broader macro view, the firm expects middle- to high-income consumers to be in a stronger position in 2026. Inflation remains elevated, and the labor market is starting to soften, which has continued to pressure the real spending power of lower-income shoppers. Bernstein also said incremental tax refunds tied to the OBBBA are likely to skew toward middle- and high-income groups.
Walmart Inc. (NASDAQ:WMT) shares are up more than 23% over the past year. In 2025, the company had to absorb tariffs and higher costs, many of which were passed along to consumers. Even so, Walmart handled that stretch better than most. Its third-quarter results came in solid, given the backdrop it was dealing with at the time.
The business itself remains hard to shake. Roughly 90% of the US population lives within 10 miles of a Walmart store. That footprint matters, especially when prices are under pressure. The company has also stayed disciplined on pricing, keeping its low-price promise relative to competitors even when costs rise. That combination showed its value again in 2025.
The company also made a notable move on the technology front, striking a deal with OpenAI that will allow consumers to browse and purchase Walmart items through a shopping and checkout feature integrated into ChatGPT. Adapting to change is nothing new for the company. While many retailers struggled or disappeared as e-commerce gained ground, Walmart kept investing and adjusting. It now ranks among the largest online retailers in the US, alongside its massive physical presence.
Walmart Inc. (NASDAQ:WMT) operates as a technology-powered omnichannel retailer, running retail and wholesale stores and clubs, along with e-commerce websites and mobile apps.
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