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. Although this sector may not produce spectacular growth, they do provide a strong reliable stream of constant income which is a great diversifier during economic downturns. If you’re a long term investor, these high-dividend consumer staples stocks can boost your monthly portfolio income.
Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF)
RMCF has a nice dividend yield of 3.85% and has a payout ratio of 87.41% . RMCF’s dividends have increased in the last 10 years, with DPS increasing from $0.4 to $0.48. It should comfort existing and potential future shareholders to know that RMCF hasn’t missed a payment during this time. The company has not experienced any significant earnings growth decline in the last five years, sustaining positive EPS growth during this period. More on Rocky Mountain Chocolate Factory here.
Libbey Inc. (AMEX:LBY)
LBY has a juicy dividend yield of 7.97% and a reasonably sustainable dividend payout ratio , with an expected payout of 43.16% in three years. Despite there being some hiccups, dividends per share have increased during 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. Continue research on Libbey here.
CSS Industries, Inc. (NYSE:CSS)
CSS has an appealing dividend yield of 4.04% and a reasonably sustainable dividend payout ratio . In the last 10 years, shareholders would have been happy to see the company increase its dividend from $0.56 to $0.8. To the enjoyment of shareholders, the company hasn’t missed a payment during this period. During the previous five year period, the company has maintained a positive earnings growth. Although it has not been exceptional growth, investors should take confidence in the fact that the company has not experienced significant earnings growth downturn. Continue research on CSS Industries here.
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.