5 Best Consumer Staples Dividend Stocks to Buy Now

In this article, we will discuss 5 best consumer staples dividend stocks to buy now. If you want to read our detailed analysis of the sector and its performance this year, go directly to read 13 Best Consumer Staples Dividend Stocks to Buy Now. 

5. The Procter & Gamble Company (NYSE:PG)

Dividend Yield as of November 8: 2.67%

The Procter & Gamble Company (NYSE:PG) is an American multinational consumer goods company that deals in a wide range of personal care and hygiene products. On October 11, the company declared a quarterly dividend of $0.9133 per share, in line with its previous dividend. The company has been raising its dividends consistently for the past 66 years, which makes it one of the best dividend stocks to buy now. As of November 8, the stock has a dividend yield of 2.67%.

In fiscal Q1 2023, The Procter & Gamble Company (NYSE:PG) reported an operating cash flow of $4.1 billion, and its free cash flow productivity stood at 86%. The company paid $6.3 billion to shareholders during the quarter, $2.3 billion of which represented dividend payments.

In October, Barclays raised its price target on The Procter & Gamble Company (NYSE:PG) to $145 with an Overweight rating on the shares. The firm appreciated the company’s fiscal first-quarter results and its overall fundamentals.

Of the 895 hedge funds tracked by Insider Monkey, 71 funds owned stakes in The Procter & Gamble Company (NYSE:PG) in Q2 2022, compared with 72 a quarter earlier. These stakes hold a consolidated value of over $5.5 billion. Ray Dalio’s Bridgewater Associates was the company’s leading stakeholder in Q2.

4. The Coca-Cola Company (NYSE:KO)

Dividend Yield as of November 8: 2.96%

The Coca-Cola Company (NYSE:KO) is an American multinational manufacturer and marketer of non-alcoholic beverages and syrups. In Q3 2022, the company reported a 3% growth in its global unit case volume. Its operating cash flow came in at $8.1 billion year-to-date and its free cash flow for the period stood at $7.3 billion. The company generated over $11 billion in revenues during the quarter, which showed an 11% growth from the same period last year.

On October 20, The Coca-Cola Company (NYSE:KO) declared a quarterly dividend of $0.44 per share, in line with its previous dividend. The company holds one of the longest dividend growth track records of 60 years, which makes it one of the best dividend stocks on our list. As of November 8, the stock has a dividend yield of 2.96%.

UBS raised its price target on The Coca-Cola Company (NYSE:KO) in October to $68 and maintained a Buy rating on the shares, calling the company’s Q3 earnings ‘impressive’. The firm mentioned that the company has the potential for stronger revenue growth.

At the end of the June quarter, 60 hedge funds in Insider Monkey’s database owned stakes in The Coca-Cola Company (NYSE:KO), down from 64 in the previous quarter. These stakes have a total value of over $28.3 billion. With 400 million shares, Berkshire Hathaway was the company’s leading stakeholder in Q2.

Aristotle Capital Management, LLC mentioned The Coca-Cola Company (NYSE:KO) in its Q2 2022 investor letter. Here is what the firm has to say:

“The Coca-Cola Company (NYSE:KO), the global beverage business, was a leading contributor for the period. Coca-Cola continues to benefit from the refranchising of its bottling operations and realignment of incentives, catalysts we previously identified. These initiatives are demonstrating their strength in an inflationary and supply-chain-challenged environment. Additionally, the company has focused on evolving its customer engagement practices by leveraging digital and social medias for targeted campaigns, such as the design and launch of Coke Byte in the metaverse. Lastly, Coca-Cola has furthered its transformation into a total beverage company, as it debuted its new Jack Daniel’s Tennessee Whiskey and Coca-Cola ready-to-drink premixed cocktail. Although uncertainties surrounding cost pressures, lockdowns and geopolitical conflicts remain, we believe Coca-Cola is uniquely positioned to successfully continue its transition toward a total beverage business.”

3. The Clorox Company (NYSE:CLX)

Dividend Yield as of November 8: 3.28%

The Clorox Company (NYSE:CLX) is a California-based manufacturer and marketer of consumer and professional goods. The company mainly specializes in bleach and cleaning products. It has a strong dividend history, paying regular dividends to shareholders for the past 50 years. Moreover, the company has raised its payouts consistently for the past 20 years, coming through as one of the best dividend stocks to buy. Currently, it pays a quarterly dividend of $1.18 per share and has a dividend yield of 3.28%, as of November 8.

In fiscal Q1 2023, The Clorox Company (NYSE:CLX) reported revenue of $1.74 billion, which beat estimates by $40 million. The company’s operating cash flow year-to-date came in at $178 million, compared with $41 million during the same period last year. It ended the quarter with $278 million in cash and cash equivalents, up from $183 million in the previous quarter.

In November, DA Davidson lifted its price target on The Clorox Company (NYSE:CLX) to $155 with a Neutral rating on the shares. The firm expects the company’s gross margins to expand on a year-over-year basis.

At the end of Q2 2022, the number of hedge funds tracked by Insider Monkey reported owning stakes in The Clorox Company (NYSE:CLX) grew to 31, from 26 in the previous quarter. These stakes have a total value worth $570.4 million.

2. Philip Morris International Inc. (NYSE:PM)

Dividend Yield as of November 8: 5.53%

Philip Morris International Inc. (NYSE:PM) is a New York-based multinational tobacco company that markets and sells its products in over 180 countries. Morgan Stanley raised its price target on the stock in November to $109 with an Overweight rating on the shares, following the company’s recent agreement with Altria Group.

Philip Morris International Inc. (NYSE:PM) is one of the best dividend stocks on our list as it has been raising its dividends consistently since its IPO in 2008. It currently pays a quarterly dividend of $1.27 per share and has a dividend yield of 5.53%, as of November 8.

At the end of Q2 2022, 56 hedge funds tracked by Insider Monkey owned stakes in Philip Morris International Inc. (NYSE:PM), compared with 55 in the previous quarter. These stakes hold a combined value of $6.8 billion. Fundsmith LLP was one of the company’s most prominent shareholders in Q2.

Artisan Partners mentioned Philip Morris International Inc. (NYSE:PM) in its Q2 2022 investor letter. Here is what the firm has to say:

“On the positive side of the ledger, our top contributor was Swedish Match, a Swedish tobacco and nicotine products maker. The company received an all-cash takeover offer from rival Philip Morris International Inc. (NYSE:PM), which we also held in the portfolio, for SEK 106 per share—a 35% premium to Swedish Match’s prior closing share price. The deal is a good fit for PM as it reduces PM’s dependence on cigarettes—a category in steady decline—and accelerates the company’s transition to smokeless “reduced-risk” products (RRPs)—a category that has experienced rapid growth over the past five years. PM can also leverage its global scale to generate significant revenue synergies from these complementary product sets, as well as quickly gain access to the US market—the world’s largest market for RRPs and one where regulators have embraced RRPs and other less harmful nicotine products. We exited our position in Swedish Match as shares approached the takeout price.”

1. Altria Group, Inc. (NYSE:MO)

Dividend Yield as of November 8: 8.17%

Altria Group, Inc. (NYSE:MO) is one of the world’s largest producers and marketers of tobacco and related products. The company is headquartered in Virginia, US. In the third quarter of 2022, the company’s shareholder return remained strong due to consistent cash flows and a solid balance sheet. It repurchased shares worth $368 million during the quarter. Also, the company paid $1.6 billion in dividends to shareholders, which makes it one of the best dividend stocks to buy.

Altria Group, Inc. (NYSE:MO) pays a quarterly dividend of $0.94 per share and has a dividend yield of 8.17%, as recorded on November 8. In 2022, the company extended its dividend growth streak to 53 years.

In October, Stifel raised its price target on Altria Group, Inc. (NYSE:MO) to $50 with a Buy rating on the shares, highlighting the company’s joint venture with Japan Tobacco.

As of the close of Q2 2022, 48 hedge funds tracked by Insider Monkey reported owning stakes in Altria Group, Inc. (NYSE:MO), up from 47 in the previous quarter. These stakes hold a combined value of over $1.8 billion.

You can also take a look at Goldman Sachs’ Cheap Dividend Stocks and 12 Best Financial Dividend Stocks to Invest In

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