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Stocks with high dividend yields beat the overall market by an average of 1.36% per year between 1927 and 2009. We like high dividend stocks since they generally perform better and usually increase dividend payments over the succeeding 5 to 10 years. In addition, we encourage the investors to play defensively during the recent market turmoil by investing in high dividend stocks as we are concerned about the Fed’s inflationary monetary policy.

Below we compiled a list of top 14 consumer goods stocks. All companies have a market cap of over $2 billion and a dividend yield of at least 4%. The market data is sourced from finviz.

Ticker

Company

Dividend Yield

YTD Return

AVP

Avon Products Inc.

4.60%

-29.37%

BTI

British American Tobacco plc

4.69%

12.38%

FBR

Fibria Celulose SA

4.39%

-47.95%

IP

International Paper Co.

4.26%

-7.12%

KMB

Kimberly-Clark Corporation

4.05%

13.31%

LEG

Leggett & Platt, Incorporated

5.73%

-10.85%

LO

Lorillard, Inc.

4.88%

35.22%

MO

Altria Group Inc.

6.38%

9.18%

PBI

Pitney Bowes Inc.

8.12%

-20.89%

PHG

Koninklijke Philips Electronics NV

6.60%

-43.28%

PM

Philip Morris International, Inc.

4.74%

13.17%

RAI

Reynolds American Inc.

5.85%

16.11%

UL

Unilever plc

4.05%

1.00%

UN

Unilever NV

4.03%

-0.33%


Here are the top 10 consumer goods stocks with the best performance this year.

Lorillard Inc (LO): Lorillard is the manufacturer of cigarettes in the United States. LO has a dividend yield of 4.88% and returned 35.22% since the beginning of this year. It has a market cap of $14.8B and a P/E ratio of 14.61. Billionaire Jim Simons invested $311 million in LO shares (check out Simons’ top stock picks).

Reynolds American Inc (RAI): Reynolds produces cigarette and smokeless tobacco. RAI has a dividend yield of 5.85% and returned 16.11% since the beginning of this year. It has a market cap of $21.1B and a P/E ratio of 15.77. David Winters and Jim Simons both had over $40 million invested in RAI shares.

Kimberly-Clark Corporation (KMB): Kimberly-Clark is a global company focused on building its personal care and healthcare brands. KMB has a dividend yield of 4.05% and returned 13.31% since the beginning of this year. It has a market cap of $27.1B and a P/E ratio of 16.36. Ric Dillon invested $63 million in KMB shares.

Philip Morris International Inc (PM): PMI is engaged in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States of America. PM has a dividend yield of 4.74% and returned 13.17% since the beginning of this year. It has a market cap of $114B and a P/E ratio of 14.86. Tom Russo invested $543 million in PM stocks. Jim Simons and D.E. Shaw also had nearly $200 million invested in PM (check out Shaw’s top stock picks).

British American Tobacco Plc (BTI): BTI has a dividend yield of 4.69% and returned 12.38% since the beginning of this year. It has a market cap of $82.4B and a P/E ratio of 16.32. Tom Russo invested $179 million in BTI shares.

Altria Group Inc (MO): Altria is engaged in the manufacture and sale of cigarettes and certain smokeless products. MO has a dividend yield of 6.38% and returned 9.18% since the beginning of this year. It has a market cap of $53.2B and a P/E ratio of 15.58. Tom Russo owned $187 million of MO stocks.

Unilever Plc (UL): Unilever PLC is a supplier of fast moving consumer goods. UL has a dividend yield of 4.05% and returned 1.00% since the beginning of this year. It has a market cap of $86.5B and a P/E ratio of 14.35.

Unilever NV (UN): Unilever N.V. is a supplier of fast moving consumer goods. The two parent companies, Unilever NV and PLC, together with their group companies, operate as the Unilever Group. UN has a dividend yield of 4.03% and lost 0.33% since the beginning of this year. It has a market cap of $85.2B and a P/E ratio of 14.4. Ken Fisher invested over $500 million in UN shares (check out Fisher’s top stock picks).

International Paper Co (IP): International Paper is a global paper and packaging company. IP has a dividend yield of 4.26% and lost 7.12% since the beginning of this year. It has a market cap of $10.8B and a P/E ratio of 8.68. David Tepper had $152 million invested in IP shares.

Leggett & Platt, Incorporated (LEG): Leggett & Platt, Incorporated designs and produces a range of engineered components and products found in many homes, offices, retail stores and automobiles. LEG has a dividend yield of 5.73% and lost 10.85% since the beginning of this year. It has a market cap of $2.8B and a P/E ratio of 16.44. Ray Dalio had $28 million invested in LEG.

Source: 14 High Dividend Consumer Stocks