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Americans Slash Spending: 5 High-Yield Dividend Consumer Staples Stocks Are Bulletproof

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U.S. consumer spending collapsed in January, falling to lows not seen in almost four years. Americans cut their spending by 0.2% in January as tariff threats, massive government and tech layoffs, continued to dominate headlines. Data released in late February showed consumers cut their spending by the most since February 2021. The U.S. Department of Commerce also cited the unseasonably cold January weather, which some reports indicated was part of the coldest winter in the United States in 25 years.
While consumer discretionary spending took a beating, consumer staples likely held up better.
Inflation was somewhat tempered, which is a huge positive.
The Federal Reserve likely keeps rates set at current levels for the rest of 2025.
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Consumer staples stocks are shares of companies that sell everyday essentials, such as food, drinks, and household goods. These stocks are considered relatively stable investments because the demand for these products is consistent across economic cycles. One of the benefits to owning consumer staples stocks, especially when market volatility and the stock market weakens, is that they may be more inflation-resistant than other sectors, and quality companies in the sector can provide consistent, reliable growth.
We screened our 24/7 Wall St. consumer staples dividend stocks research database looking for top companies. Five hit our screens. All pay dependable and growing dividends and look to have solid upside to Wall Street’s price targets. In addition, all are rated Buy at top firms that we cover.
Consumer staples dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Here are five of the top stocks in our consumer staples dividend universe.
This tobacco company offers value investors a great entry point and a rich 7.45% dividend. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.
The company provides cigarettes, primarily under the Marlboro brand, as well as:
It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.
Altria used to own over 10% of Anheuser-Busch InBev, the world’s largest brewer. Earlier this year, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.
Warren Buffett owns Diageo PLC (NYSE: DEO), one of the largest producers of alcoholic beverages in the world. The company pays a solid 4.14% dividend.
It offers:
The company’s premium brands comprise Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray, and Guinness.
The reserve brands include:
Johnnie Walker super premium brands:
This consumer staples leader is a safe bet for nervous investors, paying a dependable 3.60% dividend. Kimberly Clark Corp. (NYSE: KMB) and its subsidiaries manufacture and market personal care and consumer tissue products worldwide.
It operates through three segments:
The Personal Care segment offers a diverse range of products, including:
The Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins, and related products under the brand names:
The K-C Professional segment offers wipers, tissues, towels, apparel, soaps, and sanitizers under the Kleenex, Scott, WypAll, Kimtech, and KleenGuard brands.
Warren Buffett also has a sizable position in this company. Even in bad times, everybody has to eat, and this company always stands to benefit while paying a tremendous 5.22% dividend. Kraft Heinz Co. (NYSE: KHC) was formed via the merger of H.J. Heinz and Kraft Foods.
The company is a leading global food company with estimated annual revenues of over $25 billion from well-known brands such as Kraft, Heinz, Oscar Meyer, and Maxwell House.
Kraft Heinz is North America’s third-largest food and beverage manufacturer. It derives 76% of its revenues from that market and 24% from the International segment.
The company’s additional brands include:
This top consumer staples stock posted solid earnings for the fourth quarter that were above expectations. PepsiCo Inc. (NYSE: PEP) is a worldwide food and beverage company. It will continue to supply all the goods for the 2025 March Madness parties and pays a solid 3.57% dividend.
Its Frito-Lay North America segment offers:
The company’s Quaker Foods North America segment provides:
PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:
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