Consumer staples demand are considered to be inelastic which means it doesn’t change much over time as consumers treat these products as necessities. This means these staple stocks make for great defensive investments that demonstrate high dividends due to stable cash flows. I’ve identify the following consumer staples stocks paying high income, which may increase the value of your portfolio.
Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF)
RMCF has a large dividend yield of 4.18% and the company currently pays out 80.70% of its profits as dividends . Over the past 10 years, RMCF has increased its dividends from $0.4 to $0.48. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. When we compare Rocky Mountain Chocolate Factory’s PE ratio with its industry, the company appears favorable. The US Food industry’s average ratio of 21 is above that of Rocky Mountain Chocolate Factory’s (19.3).
Libbey Inc. (AMEX:LBY)
LBY has a enticing dividend yield of 7.47% and a reasonably sustainable dividend payout ratio , with an expected payout of 43.16% in three years. Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from $0.1 to $0.47 over the past 10 years. It also looks like Libbey has some promising growth in store for the next year, with analysts expecting the company’s earnings to increase by 94.26% over the next 12 months.
CSS Industries, Inc. (NYSE:CSS)
CSS has a sizeable dividend yield of 2.92% and pays 35.05% of it’s earnings as dividends . The company’s dividends per share have risen from $0.56 to $0.8 over the last 10 years. The company has been a reliable payer too, not missing a payment during this time. CSS Industries’s earnings growth over the past 12 months has exceeded the us consumer durables industry, with the company reporting an EPS growth of 62.33% while the industry totaled 11.28%.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.