8 American Mid-Cap Consumer Goods Companies That Currently Yield Over 3%

by: Zvi Bar
As has been discussed by so many, ad nauseum, current interest rates for cash and CDs is next to nothing, as are short term U.S. Treasuries. To get over 3% from a Treasury, you have go out 10 years, even though U.S. debt is being downgraded. Many investors are avoiding the bond markets, fearing potential bond value depreciation, and looking for higher yielding equities that can fill or supplement the fixed income portion of a portfolio.
I recently discussed the ten Dow Jones Industrial Average (DJIA) components that currently yield 3% or more, and the list seemed fairly helpful, since the average dividend within the S&P 500 (NYSEARCA:SPY) is approximately 1.75%, and the Dow Jones Industrial Average (NYSEARCA:DIA) is yielding about 2.4%. The list contained some telecom and pharmaceutical companies, which are commonly touted as dividend darlings, but also a few companies in the consumer good sector that own strong products and brands, with probable pricing power in an inflationary environment.
Some of you might also appreciate a list of mid-cap ($2-10 Billion market capitalization) consumer goods securities that own strong brands and yield over 3%. I therefore filtered the market for domestic mid-cap consumer goods corporations with suitable yields, and my screen revealed only 8 names. While I can make no guarantees about the future performance of any of these companies, most of them do appear to have well-established businesses and brands. Please investigate them further to gauge their suitability with regard to your investment needs.
The following is a list of the eight American Mid-Cap Consumer Goods Companies that currently yield over 3%, listed in alphabetical order, along with their Industry.
  1. Clorox Corporation (NYSE:CLX)
    • Yield: 3.2%
    • Industry: Housewares & Accessories
    • Market Capitalization: $9.53 Billion
  1. ConAgra Foods, Inc. (NYSE:CAG)
    • Yield: 3.8%
    • Industry: Processed & Packaged Foods
    • Market Capitalization: $9.96 Billion
  1. Diebold, Incorporated (NYSE:DBD)
    • Yield: 3.21%
    • Industry: Business Equipment
    • Market Capitalization: $2.41 Billion
  1. Leggett & Platt, Incorporated (NYSE:LEG)
    • Yield: 4.62%
    • Industry: Home Furnishings & Fixtures
    • Market Capitalization: $3.43 Billion
  1. Mattel Inc. (NASDAQ:MAT)
    • Yield: 3.5%
    • Industry: Toys & Games
    • Market Capitalization: $9.4 Billion
  1. MeadWestvaco Corporation (MWV)
    • Yield: 3.2%
    • Industry: Packaging & Containers
    • Market Capitalization: $5.47 Billion
  1. Pitney Bowes Inc. (NYSE:PBI)
    • Yield: 5.9%
    • Industry: Business Equipment
    • Market Capitalization: $5.23 Billion
  1. Sonoco Products Co. (NYSE:SON)
    • Yield: 3.18%
    • Industry: Paper Products
    • Market Capitalization: $3.56 Billion
Several of the above-mentioned corporations are likely familiar to you. You probably have some CLX and CAG products in your home (and MAT ones if you have children), while others make products you likely see at work.
In total, as a supplement to a fixed income portfolio, these eight stocks yield approximately 3.83%, which is similar to the 3.94% average for the 10 highest yielding DJIA stocks. Both lists have an average yield that is above the present 10-year treasury yield, but, unlike a Treasury, these companies are not certain to go down in an environment where interest rates are rising.

Disclosure: Dividend yield is but one consideration in choosing an investment.

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