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Like Income? 3 Consumer Staples Stocks Worth a Look

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Currently, the Zacks Consumer Staples sector is ranked #1 out of all 16 Zacks Sectors, indicating that companies within have witnessed positive earnings estimate revisions.

Stocks in the sector carry a defensive nature, as these companies’ products have an advantageous ability to generate consistent demand in the face of many economic situations.

In addition, many also pay dividends, providing the cherry on top for those seeking an income stream.

Three stocks from the realm – Procter & Gamble (PG - Free Report) , The Coca-Cola Company (KO - Free Report) , and Altria (MO - Free Report) – could all be considerations for those looking to reap a steady income stream paired with decreased volatility.

In addition, all three sport a favorable Zacks Rank. Let’s take a closer look at each one.

The Coca-Cola Company

Coca-Cola is an American multinational corporation best known for its flagship Coca-Cola beverage. The company’s earnings outlook has drifted higher as of late, helping land KO into a Zacks Rank #2 (Buy).

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Impressively, KO is a Dividend King, showing an unparalleled commitment to shareholders through 50+ consecutive years of increased dividend payouts.

The company’s annual dividend presently sits at 2.9%, modestly above its Zacks Consumer Staples sector average.

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Image Source: Zacks Investment Research

In addition, KO’s 42.3% trailing twelve-month return on equity (ROE) is well above the Zacks sector average of 23.5%, reflecting a higher level of efficiency in generating profit from existing assets compared to peers.

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Image Source: Zacks Investment Research

Procter & Gamble

Procter & Gamble (often called P&G) is a branded consumer products company that markets its products primarily through mass merchandisers, grocery stores, membership club stores, and others. PG is currently a Zacks Rank #2 (Buy).

For those seeking income, PG’s got that covered; the company’s annual dividend currently yields a solid 2.6%, a few ticks above the Zacks Consumer Staples sector average.

In addition, Procter & Gamble has been committed to increasingly rewarding its shareholders, growing its payout by 6.4% over the last five years.  

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Image Source: Zacks Investment Research

Altria

Altria Group is a world-leading producer and marketer of cigarettes, tobacco, and other similar products. Like the stocks above, MO sports a Zacks Rank #2 (Buy), seeing its earnings outlook drift higher across all timeframes.

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Image Source: Zacks Investment Research

Altria’s annual dividend currently stands tall at a sizable 7.9%, crushing the Zacks sector average. Impressively, the company has grown its payout by more than 5% over the last five years.

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Image Source: Zacks Investment Research

Further, MO’s forward earnings multiple of 9.4X isn’t expensive, sitting below the 10.5X five-year median and Zacks sector average.

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Image Source: Zacks Investment Research

Altria carries a Style Score of “C” for Value.

Bottom Line

Adding Consumer Staples stocks is a way that investors can increase their portfolio’s defense, as many of these companies are well-established in nature and carry the ability to weather dark fiscal clouds better than most.

And, of course, many in the sector pay dividends, providing a passive income stream and a cushion against the impacts of drawdowns.

All three stocks above – Procter & Gamble (PG - Free Report) , The Coca-Cola Company (KO - Free Report) , and Altria (MO - Free Report) – could be considerations for those looking to heighten their income-generating abilities.

All three are low-beta, pay dividends, and carry a favorable Zacks Rank.


See More Zacks Research for These Tickers


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CocaCola Company (The) (KO) - free report >>

Procter & Gamble Company (The) (PG) - free report >>

Altria Group, Inc. (MO) - free report >>

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