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7 Consumer Stocks Paying Big Dividends

These stocks are tried and true for dividend fans.

There are plenty of investors who fall in love with high-growth technology stocks or innovative biopharmaceutical companies. But it can be hard to find the same enthusiasm for tried-and-true consumer staples stocks. After all, it's not like a breakfast cereal or bath tissue is going to change the world. These products are in the background, comforting and familiar but not incredibly dynamic. Of course, that staying power is precisely what makes a good dividend investment. Reliable revenue and a stable brand can support regular payouts each quarter in a way that a high-risk and high-reward business model simply cannot. Here are seven names to watch that boast dividends of 3 percent or better.

Anheuser-Busch InBev (NYSE: BUD)

While much has been made about the rise of craft brewers and the decline of "Big Beer," it's important to remember that this global conglomerate is the biggest brewer in the world and still accounts for roughly one in every six beers sold in the U.S. That means that this $200 billion beverage giant has a harder path to growth given its dominance, but it also obviously means a strong baseline of sales for the company north of $55 billion annually. That supports a generous and reliable dividend for shareholders.

Current yield: 3.6 percent

Procter & Gamble Co. (PG)

From Gillette razors to Crest toothpaste to Dawn dish soap and Charmin toilet paper, Procter & Gamble owns a wide variety of powerful consumer products. This makes it one of the most reliable consumer names in the space thanks to both its brand power, as well as its diversification across many different parts of a typical family's budget. This consistency is great, but a short-term pop could be on the way as new board member Nelson Peltz offers promise to maximize shareholder value. That could make this a great combination of income potential and share appreciation in the months ahead.

Current yield: 3.2 percent

Altria Group (MO)

While some folks may not view tobacco as a staple like cereal or paper towels, the reality is that cigarettes are a reliable expense in many family budgets. That habit may not be good for a consumer's health, but it is great for an income investor looking for a company with consistent sales. While there's not a lot of growth here, given the health concerns around the product, there is a modest amount of stability and an evolution toward e-cigarettes and smokeless products that will help keep sales and profits steady for many years.

Current yield: 3.8 percent

General Mills (GIS)

With amazing brand power including Cheerios cereal, Betty Crocker baked goods and Green Giant veggies, it's hard to imagine a company like General Mills not having plenty of shelf space in the pantry. And as shoppers consistently check out these products, that means a reliable dividend stream for GIS stock holders. While the share price of this company hasn't seen a lot of upside as growth-oriented names have driven much of the stock market's gains, income investors should be encouraged by the company's history of payouts for more than a century. If you're a long-term investor who cares about dividends, that's a great track record.

Current yield: 3.4 percent

Flowers Foods (FLO)

Though perhaps not as well-known as General Mills, this mid-cap bakery has a great niche carved out with loyal American consumers. Its most popular brands include Sunbeam and Wonder breads, and Tastykake and Mrs. Freshley's baked goods. While top-line metrics haven't quite set the world on fire, it's important to note that Flowers has a very sustainable dividend. It pays out just 68 cents in annual distributions, while it's set to book about 98 cents in annual earnings for fiscal 2018. That's less than 70 percent of total profits, in-line with market norms, and highly sustainable going forward.

Current yield: 3.5 percent

Kimberly Clark Corp. (KMB)

Paper products giant Kimberly Clark is one of those companies that quietly dominates a nice corner of the consumer market. From Huggies diapers to Kleenex tissues, its products are reliably purchased by consumers in good times and bad. That means a dependable business -- and dependable dividends. Kimberly Clark has been in the news lately for the recent announcement that it will close two Wisconsin plants and lay off 600 workers. And while this is tough for the families of those affected, it ultimately may be a good thing for shareholders as this low-growth company continues to focus on efficiency and profit margins going forward.

Current yield: 3.4 percent

Newell Brands (NWL)

One of the most wide-reaching consumer companies out there is Newell Brands, with products that include Rubbermaid storage goods, Sharpie and Paper-Mate office supplies and First Alert smoke detectors. This diversity is a double-edged sword. While the products allow the corporation to tap into different markets, it's difficult to get economies that exist in a company with similar products. Newell is normally the target of activist investors who think they can squeeze more value from shares as a result. But regardless of who's on the board, the dividend will surely always be there given the consistent revenue and strong brands of the company.

Current yield: 3.2 percent



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