10 Best Dividend-Paying Consumer Goods Stocks

I like consumer staple stocks because they have a deep relationship to the customer, irrespective of economic cycles. My favorite stocks produce daily goods like food or toothpaste, beauty or health products. These stocks are often are well diversified and ideally generate more than 50 percent of their revenues outside the United States. In this group are such companies as Procter & Gamble (PG) or ColgatePalmolive (CL), PepsiCo (PEP) and Coca Cola (KO). Each company has raised dividends over the long haul and thus helped to boost my dividend income. Let’s look at the sector and hunt for some bargains.

I screened the sector by the best yielding stocks with a low P/E ratio (value of less than 15). As result, ten stocks remain of which two are high-yields and seven are recommended to buy. The dominant industry in the screen is the auto manufacturing industry. The market sees a high profit slowdown in this sector. For the time being, earnings growth rate for those auto stocks are still attractive. But the situation will change. Also remarkable is the high debt ratios of the car stocks. I personally don’t like those companies and wouldn’t recommend them to buy.

Mattel (MAT) has a market capitalization of $12.18 billion. The company employs 28,000 people, generates revenue of $6.266 billion and has a net income of $768.51 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.202 billion. The EBITDA margin is 19.19 percent (the operating margin is 16.61 percent and the net profit margin 12.26 percent).

Financial Analysis: The total debt represents 27.47 percent of the company’s assets and the total debt in relation to the equity amounts to 59.68 percent. Due to the financial situation, a return on equity of 29.00 percent was realized. Twelve trailing months earnings per share reached a value of $2.41. Last fiscal year, the company paid $0.92 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.73, the P/S ratio is 1.94 and the P/B ratio is finally 4.58. The dividend yield amounts to 3.49 percent and the beta ratio has a value of 0.92.






Mondelez International (MDLZ) has a market capitalization of $45.74 billion. The company employs 126,000 people, generates revenue of $54.365 billion and has a net income of $3.547 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8.142 billion. The EBITDA margin is 14.98 percent (the operating margin is 12.25 percent and the net profit margin 6.52 percent).

Financial Analysis: The total debt represents 28.70 percent of the company’s assets and the total debt in relation to the equity amounts to 76.47 percent. Due to the financial situation, a return on equity of 9.93 percent was realized. Twelve trailing months earnings per share reached a value of $1.86. Last fiscal year, the company paid $1.16 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.82, the P/S ratio is 0.84 and the P/B ratio is finally 1.29. The dividend yield amounts to 2.02 percent and the beta ratio has a value of 0.54.






Bunge Limited (BG) has a market capitalization of $10.52 billion. The company employs 35,000 people, generates revenue of $58.743 billion and has a net income of $896 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.685 billion. The EBITDA margin is 2.87 percent (the operating margin is 1.60 percent and the net profit margin 1.53 percent).

Financial Analysis: The total debt represents 17.53 percent of the company’s assets and the total debt in relation to the equity amounts to 34.86 percent. Due to the financial situation, a return on equity of 8.05 percent was realized. Twelve trailing months earnings per share reached a value of $5.87. Last fiscal year, the company paid $0.98 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.27, the P/S ratio is 0.18 and the P/B ratio is finally 0.95. The dividend yield amounts to 1.50 percent and the beta ratio has a value of 1.18.






Take a closer look at the full table of cheap consumer goods stocks. The average P/E ratio amounts to 12.15 and forward P/E ratio is 10.87. The dividend yield has a value of 2.73 percent. Price to book ratio is 1.75 and price to sales ratio 0.87. The operating margin amounts to 9.92 percent. The average stock has a debt to equity ratio of 1.25. The high leverage is explainable with Fords figure of 5.34. If we exclude this value, the average leverage amounts to 0.74.

Here is the full table with some fundamentals (TTM):


Related stock ticker symbols:
LO, CAJ, MAT, JCI, MDLZ, PCAR, F, HMC, TM, BG