These high-yield consumer stocks can pay steady dividends for the long term.
These high-yield consumer stocks can pay steady dividends for the long term.
Macroeconomic headwinds have weighed on shares of top consumer brands. For income investors, this weakness is a gift, as lower stock prices have pushed dividend yields to attractive levels.
Here's why Home Depot (HD 1.19%), Hershey (HSY 1.47%), and Diageo (DEO 2.34%) are some of the most attractive dividend stocks to buy right now.
Shares of Home Depot are currently trading 29% below their previous high. Sales growth has been pressured by elevated interest rates, which have made financing home projects more expensive. But this is exactly when you want to invest in Home Depot, because the stock won't offer value like this in a roaring economy.
At the current quarterly payment of $2.33 per share ($9.32 annually), the forward dividend yield is 2.98% -- nearly three times the S&P 500 (^GSPC +0.22%) average. That payout is fully supported by earnings, with a payout ratio of 65%. The yield is also near the high end of the stock's historical range.
In the first quarter, comparable sales increased 0.6% year over year. Adjusted earnings dipped to $3.43 from $3.56 in the year-ago quarter, but steady comp sales are encouraging in this environment. Home Depot is well positioned for faster growth when demand rebounds.
The business is gaining share with professional customers. It's seeing double-digit growth in digital orders and rolling out new artificial intelligence (AI) tools, such as Blueprint Takeoffs, to help Pros plan projects more efficiently.
These new services are helping unlock a larger addressable market, particularly in complex projects, which management estimates to be worth $400 billion. That growth potential, paired with an above-average yield, makes Home Depot one of the best dividend stocks to consider in 2026.
Shares of Hershey are down 29% from their high as the company has dealt with higher cocoa prices and headwinds from more consumers taking weight-loss drugs. Despite the challenges, its brand portfolio -- including Reese's, Skinny Pop, and Dot's Pretzels -- has held up well.
Organic (currency-neutral) sales grew nearly 8% year over year in the first quarter, while adjusted earnings rose 12%. Hershey still looks capable of delivering steady growth for years, since it's highly unlikely people will ever stop buying chocolate. Statista estimates the global confectionery market at $146 billion in 2026, with annual growth of 5% through 2031.
Averytin News Financial update.