Consumer defensive companies tend to be non-cyclical, which means their products and services are in constant demand irrespective of the economic cycle. Consumption also tends to sit at a relatively steady level, regardless of price. The sector is not susceptible to business cycles and performs relatively better during bad times, which means it may provide a strong reliable stream of income through dividend payouts. If you’re a buy-and-hold investor, these healthy dividend stocks in the consumer staples industry can generously contribute to your monthly portfolio income.
Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF)
RMCF has a sumptuous dividend yield of 4.17% and the company has a payout ratio of 95.29% . Over the past 10 years, RMCF has increased its dividends from US$0.40 to US$0.48. To the enjoyment of shareholders, the company hasn’t missed a payment during this period. Over the last five years, Rocky Mountain Chocolate Factory has sustained a positive earnings growth rate. Dig deeper into Rocky Mountain Chocolate Factory here.
CSS Industries, Inc. (NYSE:CSS)
CSS has a sumptuous dividend yield of 5.06% and a reasonably sustainable dividend payout ratio . CSS’s DPS have risen to US$0.80 from US$0.60 over a 10 year period. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period. There have been no periods of negative earnings in the last five years for CSS Industries. More on CSS Industries here.
SpartanNash Company (NASDAQ:SPTN)
SPTN has a sumptuous dividend yield of 4.08% and a reasonably sustainable dividend payout ratio , with analysts expecting the payout in three years to be 34.30%. SPTN’s dividends have increased in the last 10 years, with DPS increasing from US$0.20 to US$0.72. To the enjoyment of shareholders, the company hasn’t missed a payment during this period. Continue research on SpartanNash here.
For more solid dividend paying companies to add to your portfolio, explore this 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.