Companies that work in the food, beverage, household items, packaging, and tobacco industries are considered consumer defensive. These are said to be consumer essentials because individuals continue to buy them even when their money is constrained. The consumer defensive sector has valuations that are neither excessively high nor excessively low. The consumer defensive sector is viewed as neutral by Charles Schwab. During inflationary periods, the sector might thrive since higher expenses can be passed on to customers. However, due to tight rivalry within the industry, pricing power is limited.
Insider Monkey selected consumer defensive stocks that have a rich dividend history. Costco Wholesale Corporation is an American retailer of sundries, dry goods, liquor, electronics, health and beauty products, and tools. The corporation has operations in the US, Canada, Mexico, the UK, Japan, South Korea, Taiwan, Australia, Spain, France, Iceland, and China. Dollar General Corporation is a bargain store chain based in the United States. As of April 1, the stock yields 0.97 percent in dividends. From current levels, BMO Capital analyst sees a chance for the business to recover to its 10% EPS CAGR. Lamb Weston Holdings, Inc. is a frozen and packaged food production corporation based in Idaho. The corporation pays out a 1.60 percent dividend yield. The dividend will be paid to company shareholders on June 3rd after the conclusion of business on May 6th. The Archer-Daniels-Midland Company is a food processor that supplies cereal grains and oilseeds for food and animal feed production. On April 1, the company’s dividend yield was 1.75 percent. Bunge Limited reported fourth-quarter earnings of $3.49 per share on February 9, beating analysts’ expectations by $0.62. Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy are the company’s four primary segments. For more details, click 10 Dividend Paying Consumer Defensive Stocks.