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I personally love the consumer goods sector because stocks from the sector normally have a low volatility and pay sustainable dividends. The sector has a size of $103.9 trillion and summarizes 38 industries. The highest yielding industries are cigarettes/ tobacco and food, followed by business equipment and toys/games. Tobacco is also the industry with the highest margin.

In an effort to find some stocks from this sector to recommend, I screened mid-cap stocks (more than $10 billion market caps) with a dividend yield of more than 3 percent, as well as a buy or better recommendation from brokerage firms. The recommendation scheme was created by Finviz.com and has a point scale of 1 to 5, with 1 a strong buy rating and 2 a buy. As a result, 10 consumer goods stocks have a buy rating and 4 have a strong buy recommendation. Here are the results sorted by dividend yield:

1. Koninklijke Philips Electronics (NYSE:PHG) has a market capitalization of $17.24 billion. The company employs 124,218 people, generates revenues of $32,223.67 million and has a net income of $1,817.88 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,420.47 million. Because of these figures, the EBITDA margin is 13.72 percent (operating margin 8.12 percent and the net profit margin finally 5.64 percent).

The total debt representing 14.43 percent of the company’s assets and the total debt in relation to the equity amounts to 30.96 percent. Due to the financial situation, a return on equity of 9.76 percent was realized. Twelve trailing months earnings per share reached a value of $-0.57. Last fiscal year, the company paid $0.95 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is not calculable, Price/Sales 0.58 and Price/Book ratio 0.91. Dividend Yield: 6.07 percent. The rating from analysts is 2.5.

2. Lorillard (NYSE:LO) has a market capitalization of $15.27 billion. The company employs 2,700 people, generates revenues of $5,932.00 million and has a net income of $1,029.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,760.00 million. Because of these figures, the EBITDA margin is 29.67 percent (operating margin 29.08 percent and the net profit margin finally 17.35 percent).

The total debt representing 53.67 percent of the company’s assets. Twelve trailing months earnings per share reached a value of $7.43. Last fiscal year, the company paid $4.25 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 15.22, Price/Sales 2.57 and Price/Book ratio is not calculable. Dividend Yield: 4.60 percent. The rating from analysts is 2.5.

3. British American Tobacco (NYSEMKT:BTI) has a market capitalization of $90.50 billion. The company employs 92,285 people, generates revenues of $22,796.27 million and has a net income of $4,809.53 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,385.85 million. Because of these figures, the EBITDA margin is 32.40 percent (operating margin 29.01 percent and the net profit margin finally 21.10 percent).

The total debt representing 36.79 percent of the company’s assets and the total debt in relation to the equity amounts to 111.34 percent. Due to the financial situation, a return on equity of 34.24 percent was realized. Twelve trailing months earnings per share reached a value of $4.96. Last fiscal year, the company paid $3.50 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 18.40, Price/Sales 3.93 and Price/Book ratio 6.47. Dividend Yield: 4.22 percent. The rating from analysts is 1.0.

4. Philip Morris Intl. (NYSE:PM) has a market capitalization of $134.30 billion. The company employs 78,300 people, generates revenues of $67,713.00 million and has a net income of $7,498.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,132.00 million. Because of these figures, the EBITDA margin is 17.92 percent (operating margin 16.54 percent and the net profit margin finally 11.07 percent).

The total debt representing 47.08 percent of the company’s assets and the total debt in relation to the equity amounts to 470.68 percent. Due to the financial situation, a return on equity of 156.71 percent was realized. Twelve trailing months earnings per share reached a value of $4.73. Last fiscal year, the company paid $2.44 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 16.35, Price/Sales 1.98 and Price/Book ratio 39.74. Dividend Yield: 3.98 percent. The rating from analysts is 2.1.

5. Unilever (NYSE:UL) has a market capitalization of $89.08 billion. The company employs 167,000 people, generates revenues of $56,110.95 million and has a net income of $5,626.05 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,091.95 million. Because of these figures, the EBITDA margin is 16.20 percent (operating margin 13.96 percent and the net profit margin finally 10.03 percent).

The total debt representing 22.48 percent of the company’s assets and the total debt in relation to the equity amounts to 63.89 percent. Due to the financial situation, a return on equity of 30.76 percent was realized. Twelve trailing months earnings per share reached a value of $1.96. Last fiscal year, the company paid $1.05 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 16.06, Price/Sales 2.73 and Price/Book ratio 4.82. Dividend Yield: 3.94 percent. The rating from analysts is 2.3.

6. Kimberly Clark (NYSE:KMB) has a market capitalization of $28.65 billion. The company employs 57,000 people, generates revenues of $19,746.00 million and has a net income of $1,762.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,611.00 million. Because of these figures, the EBITDA margin is 18.29 percent (operating margin 14.04 percent and the net profit margin finally 8.92 percent).

The total debt representing 32.78 percent of the company’s assets and the total debt in relation to the equity amounts to 110.04 percent. Due to the financial situation, a return on equity of 32.55 percent was realized. Twelve trailing months earnings per share reached a value of $4.18. Last fiscal year, the company paid $2.64 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 17.38, Price/Sales 1.45 and Price/Book ratio 5.00. Dividend Yield: 3.85 percent. The rating from analysts is 2.5.

7. H.J. Heinz Company (NYSE:HNZ) has a market capitalization of $16.88 billion. The company employs 34,800 people, generates revenues of $10,706.59 million and has a net income of $1,005.95 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,932.42 million. Because of these figures, the EBITDA margin is 18.05 percent (operating margin 15.39 percent and the net profit margin finally 9.40 percent).

The total debt representing 37.72 percent of the company’s assets and the total debt in relation to the equity amounts to 148.38 percent. Due to the financial situation, a return on equity of 39.51 percent was realized. Twelve trailing months earnings per share reached a value of $2.96. Last fiscal year, the company paid $1.80 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 17.82, Price/Sales 1.58 and Price/Book ratio 5.45. Dividend Yield: 3.64 percent. The rating from analysts is 2.4.

8. ConAgra Foods (NYSE:CAG) has a market capitalization of $11.08 billion. The company employs 23,200 people, generates revenues of $12,303.10 million and has a net income of $803.90 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,763.30 million. Because of these figures, the EBITDA margin is 14.33 percent (operating margin 9.96 percent and the net profit margin finally 6.53 percent).

The total debt representing 28.35 percent of the company’s assets and the total debt in relation to the equity amounts to 68.78 percent. Due to the financial situation, a return on equity of 17.18 percent was realized. Twelve trailing months earnings per share reached a value of $1.81. Last fiscal year, the company paid $0.89 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 14.80, Price/Sales 0.90 and Price/Book ratio 2.34. Dividend Yield: 3.58 percent. The rating from analysts is 2.5.

9. International Paper (NYSE:IP) has a market capitalization of $13.76 billion. The company employs 59,500 people, generates revenues of $25,179.00 million and has a net income of $601.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,886.00 million. Because of these figures, the EBITDA margin is 11.46 percent (operating margin 3.26 percent and the net profit margin finally 2.39 percent).

The total debt representing 34.18 percent of the company’s assets and the total debt in relation to the equity amounts to 126.88 percent. Due to the financial situation, a return on equity of 10.02 percent was realized. Twelve trailing months earnings per share reached a value of $3.11. Last fiscal year, the company paid $0.40 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 10.12, Price/Sales 0.55 and Price/Book ratio 2.02. Dividend Yield: 3.33 percent. The rating from analysts is 1.8.

10. PepsiCo (NYSE:PEP) has a market capitalization of $100.68 billion. The company employs 294,000 people, generates revenues of $57,838.00 million and has a net income of $6,338.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10,573.00 million. Because of these figures, the EBITDA margin is 18.28 percent (operating margin 14.41 percent and the net profit margin finally 10.96 percent).

The total debt representing 36.53 percent of the company’s assets and the total debt in relation to the equity amounts to 117.64 percent. Due to the financial situation, a return on equity of 33.07 percent was realized. Twelve trailing months earnings per share reached a value of $3.99. Last fiscal year, the company paid $1.89 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 16.15, Price/Sales 1.74 and Price/Book ratio 4.79. Dividend Yield: 3.20 percent. The rating from analysts is 2.3.

11. Procter & Gamble (NYSE:PG) has a market capitalization of $181.06 billion. The company employs 129,000 people, generates revenues of $82,559.00 million and has a net income of $11,797.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18,656.00 million. Because of these figures, the EBITDA margin is 22.60 percent (operating margin 19.16 percent and the net profit margin finally 14.29 percent).

The total debt representing 23.14 percent of the company’s assets and the total debt in relation to the equity amounts to 47.33 percent. Due to the financial situation, a return on equity of 18.32 percent was realized. Twelve trailing months earnings per share reached a value of $3.94. Last fiscal year, the company paid $1.97 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 16.72, Price/Sales 2.19 and Price/Book ratio 2.74. Dividend Yield: 3.19 percent. The rating from analysts is 1.9.

12. Kraft Foods (KFT) has a market capitalization of $66.73 billion. The company employs 127,000 people, generates revenues of $49,207.00 million and has a net income of $2,495.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,839.00 million. Because of these figures, the EBITDA margin is 13.90 percent (operating margin 11.00 percent and the net profit margin finally 5.07 percent).

The total debt representing 30.14 percent of the company’s assets and the total debt in relation to the equity amounts to 80.16 percent. Due to the financial situation, a return on equity of 8.01 percent was realized. Twelve trailing months earnings per share reached a value of $1.83. Last fiscal year, the company paid $1.16 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 20.63, Price/Sales 1.36 and Price/Book ratio 1.84. Dividend Yield: 3.07 percent. The rating from analysts is 1.8.

13. Diageo (NYSE:DEO) has a market capitalization of $53.40 billion. The company employs 24,020 people, generates revenues of $15,218.96 million and has a net income of $3,089.44 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,454.18 million. Because of these figures, the EBITDA margin is 29.27 percent (operating margin 26.12 percent and the net profit margin finally 20.30 percent).

The total debt representing 42.26 percent of the company’s assets and the total debt in relation to the equity amounts to 159.33 percent. Due to the financial situation, a return on equity of 41.07 percent was realized. Twelve trailing months earnings per share reached a value of $4.67. Last fiscal year, the company paid $2.48 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 18.29, Price/Sales 3.50 and Price/Book ratio 6.65. Dividend Yield: 3.04 percent. The rating from analysts is 2.3.

14. General Mills (NYSE:GIS) has a market capitalization of $26.20 billion. The company employs 35,000 people, generates revenues of $14,880.20 million and has a net income of $1,707.10 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,247.10 million. Because of these figures, the EBITDA margin is 21.82 percent (operating margin 18.65 percent and the net profit margin finally 11.47 percent).

The total debt representing 36.87 percent of the company’s assets and the total debt in relation to the equity amounts to 108.16 percent. Due to the financial situation, a return on equity of 30.56 percent was realized. Twelve trailing months earnings per share reached a value of $2.35. Last fiscal year, the company paid $1.12 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 17.28, Price/Sales 1.76 and Price/Book ratio 4.12. Dividend Yield: 3.00 percent. The rating from analysts is 2.3.

Disclosure: I am long GIS, KFT, PG, PEP, LO, PM, UL, DEO, BTI.

Source: 14 Best Yielding Consumer Stocks With A Buy Or Better Rating