The Consumer Staples Sector includes companies that sell everyday products such as food, beverages, household products, personal care items, alcohol, and tobacco. These are items that consumers keep buying even when times are tough, making the sector one of the most defensive and reliable areas for dividend growth investors.
Consumers may cut back on restaurants or vacations, but they still need groceries, toothpaste, and cleaning supplies. So while this sector is similar to the consumer discretionary sector in that it relies on consumer spending for profits, this “stickiness” in demand supports consistent earnings and some of the longest dividend growth streaks in the market.
I consider Consumer Staples (along with Utilities and Healthcare) a core sector in any well-diversified DGI portfolio. The combination of defensive characteristics and long histories of dividend increases makes it ideal for building reliable retirement income over decades.
Updated Consumer Staples Watch List – June 2026
Here is my current watch list for the Consumer Staples sector (data as of June 18, 2026). I’ve refreshed it with the latest available information on dividend growth streaks, yields, and recent performance.
Download a PDF of the full updated watch list HERE.
Key Highlights from the June 2026 Update
- Longest streaks: Coca-Cola (KO) (64 years), Kimberly-Clark (KMB) (64 years), and several others with 50+ consecutive dividend increases — excellent for compounding.
- Attractive yields: Names like Altria Group (MO) (around 6.1-6.3%) and Clorox (CLX) stand out for higher current income while maintaining dividend growth.
- Value opportunities: Several stocks are trading well below their 52-week highs, potentially offering better entry points for building yield on cost.
- Balanced mix: Tobacco and household products for defense + retail/beverage leaders for growth.
This list aligns with my overall portfolio approach — I continue to hold several of these names (including MO, PM, and others) while opportunistically rebalancing toward higher total-return opportunities in other sectors.
How I Use This Watch List
I look for companies with:
- Strong brand moats and pricing power
- Reasonable payout ratios that leave room for future growth
- History of consistent dividend increases
- Attractive valuations for long-term holding
Many of these staples pair beautifully with higher-growth ideas from my other watch lists and the High Growth Dividend Stocks page.
My Approach to Consumer Staples in a DGI Portfolio
These stocks provide ballast and reliable income that helps smooth out volatility from growth-oriented holdings. Even lower-yielding names like Costco (COST) or Walmart (WMT) can deliver excellent long-term results through a combination of dividend growth and capital appreciation.
I generally prefer quality over the absolute highest yields and focus on businesses that can grow earnings and dividends for decades.
Previous Analysis
For historical context, here are earlier articles where I shared top picks and projections at the time:
- Consumer Staples: Finding Value In An Expensive Sector (2016)
- Top 10 Consumer Staple Stocks For Dividend Growth And Income (2015)
The methodology remains useful, even though prices and specific rankings have changed.
Return to the full Watch Lists page.
Data is for informational purposes only. Always do your own research and consider your personal financial situation. Past performance does not guarantee future results.