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Non-cyclical consumer stocks are defensive stocks that perform relatively well in declining markets. They slightly underperform the market in bull markets, but make up for the loss in bear markets. IShares Dow Jones US Consumer Goods (NYSEARCA:IYK) beat the S&P 500 index by around 20% during the last five years.

We prepared a list of 20 non-cyclical consumer stocks which pay fat dividend checks regularly. All companies in this list have a market capitalization above $1 billion, P/E ratio lower than 25, and dividend yield of at least 3%. These 20 stocks returned 12.5% (including dividends) during the past 12 months, beating the government bonds by a large margin.

1. The Procter & Gamble Company (NYSE:PG): Procter & Gamble is one of the leading consumer goods companies in the world. PG recently traded at $61 and has a 3.2% dividend yield. Its stock price lost around 1% during the past 12 months. The stock has a market cap of $171 Billion and P/E ratio of 16.7. Warren Buffett and Viking Global’s Andreas Halvorsen are among prominent investors with PG positions.

2. The Coca-Cola Company (NYSE:KO): Coca-Cola is also a global company with well-known brands. It is well protected against recessions or a decline in the value of the U.S. dollar. The stock yields 3.1% and has a market cap of $146 Billion. Its PE ratio is 12.6.

3. Philip Morris International Inc. (NYSE:PM): Philip Morris operates outside the United States and has higher growth prospects than Altria (NYSE:MO). The stock returned 25% during the past 12 months and has a dividend yield of 4.1%. PM has a market cap of $113 Billion and P/E ratio of 16.

4. PepsiCo (NYSE:PEP): Pepsico globally sells food, snacks, and beverages. PEP recently traded at $64 and has a 3.1% dividend yield. The stock returned around 0% during the past 12 months. The stock has a market cap of $101 Billion and P/E ratio of 16.4. Bill Miller, Jim Simons, Ray Dalio, and Chase Coleman are among Pepsi investors.

5. Unilever NV (NYSE:UN): Like P&G, Unilever markets consumer goods around the world. UN recently traded at $30 and has a 4.8% dividend yield. The stock returned 5% during the past 12 months. The stock has a market cap of $91 Billion and P/E ratio of 14.7.

6. Companhia de Bebidas das Americas (ABV): ABV markets alcoholic and non-alcoholic beverages in the Americas. ABV recently traded at $27 and has a 3.6% dividend yield. The stock returned 52% during the past 12 months. The stock has a market cap of $84 Billion and P/E ratio of 18.6.

7. Kraft Foods Inc. (KFT): Kraft markets snacks and confectionery around the world. KFT recently traded at $31 and has a 3.8% dividend yield. The stock returned 8% during the past 12 months. The stock has a market cap of $54 Billion and P/E ratio of 21.8. Bill Ackman’s Pershing Square and Warren Buffett are among KFT investors.

8. Altria Group, Inc.: Altria mainly operates inside the U.S. and markets cigarettes and other tobacco products. MO recently traded at $25 and has a 6.3% dividend yield. The stock returned 31% during the past 12 months. The stock has a market cap of $53 Billion and P/E ratio of 13.6.

9. Diageo plc (NYSE:DEO): DEO markets alcoholic beverages around the world. DEO recently traded at $75 and has a 3.5% dividend yield. The stock returned 17% during the past 12 months. The stock has a market cap of $47 Billion and P/E ratio of 15.7.

10. Colgate-Palmolive Company (NYSE:CL): CL markets consumer products around the world. CL recently traded at $78 and has a 3.0% dividend yield. The stock lost 5% during the past 12 months. The stock has a market cap of $39 Billion and P/E ratio of 18.2. Jim Simons’ Renaissance has a large CL position in its portfolio.

11. Kimberly-Clark Corporation (NYSE:KMB): KMB markets various healthcare and consumer products around the world. KMB recently traded at $65 and has a 4.4% dividend yield. The stock returned 8% during the past 12 months. The stock has a market cap of $26 Billion and P/E ratio of 14.7. There were some insider purchases in KMB during the past six months.

12. General Mills, Inc. (NYSE:GIS): GIS markets consumer foods worldwide. GIS recently traded at $37 and has a 3.1% dividend yield. The stock returned 5% during the past 12 months. The stock has a market cap of $23 Billion and P/E ratio of 15.2.

13. Kellogg Company (NYSE:K): Kellogg markets consumer foods around the world. K recently traded at $54 and has a 3% dividend yield. The stock returned 3% during the past 12 months. The stock has a market cap of $20 Billion and P/E ratio of 16.6.

14. Reynolds American, Inc. (NYSE:RAI): RAI markets cigarettes and tobacco products around the world. RAI recently traded at $34 and has a 6.5% dividend yield. The stock returned 35% during the past 12 months. The stock has a market cap of $20 Billion and P/E ratio of 14.9.

15. HJ Heinz Company (NYSE:HNZ): Heinz markets ketchup, condiments and other consumer foods. HNZ recently traded at $48 and has a 3.7% dividend yield. The stock returned 8% during the past 12 months. The stock has a market cap of $16 Billion and P/E ratio of 16.4.

16. Avon Products (NYSE:AVP): Avon markets beauty and personal care products around the world. AVP recently traded at $27 and has a 3.5% dividend yield. The stock lost 13% during the past 12 months. AVP has a market cap of $11.7 Billion and P/E ratio of 8.

17. Campbell Soup Company (NYSE:CPB): Campbell markets convenience food products around the world. CPB recently traded at $34 and has a 3.5% dividend yield. The stock lost 2% during the past 12 months. CPB has a market cap of $10.7 Billion and P/E ratio of 14.4.

18. ConAgra Foods, Inc. (NYSE:CAG): ConAgra is also a global consumer food company. CAG recently traded at $23 and has a 4% dividend yield. The stock lost 8% during the past 12 months. CAG has a market cap of $10 Billion and P/E ratio of 15.

19. Flowers Foods, Inc. (NYSE:FLO): Flowers Foods markets bakery products in the United States. FLO recently traded at $26 and has a 3.1% dividend yield. The stock returned 7% during the past 12 months. The stock has a market cap of $2.4 Billion and P/E ratio of 17.9.

20. Deluxe Corporation (NYSE:DLX): Deluxe markets promotional products and merchandising materials to small businesses in developed countries. DLX recently traded at $26 and has a 4% dividend yield. The stock returned 37% during the past 12 months. The stock has a market cap of $1.4 Billion and P/E ratio of 8.8.

Disclosure: I am long PM.

Source: 20 Non-Cyclical Consumer Stocks for Dividend Lovers