Consumer staples such as household and personal products have relatively stable demand over time – people don’t stop cleaning their houses during an economic downturn! This means these staple stocks make for great defensive investments that demonstrate high dividends due to stable cash flows. Today I will share with you my list of high-dividend consumer staples stocks you should consider for your portfolio.
Pental Limited (ASX:PTL)
PTL has an alluring dividend yield of 6.37% and the company has a payout ratio of 75.70% . Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from $0 to $0.0325. The company has a lower PE ratio than the Global Household Products industry, which interested investors would be happy to see. The company’s PE is currently 11.9 while the industry is sitting higher at 26.2.
Gale Pacific Limited (ASX:GAP)
GAP has a great dividend yield of 5.88% and a reasonably sustainable dividend payout ratio , and analysts are expecting the payout ratio in three years to hit 54.99%. Despite some volatility in the yield, DPS has risen in the last 10 years from $0 to $0.02. GAP has an acceptable level of debt, with a debt to equity ratio of 28.38%.
Tamawood Limited (ASX:TWD)
TWD has an appealing dividend yield of 6.77% and is distributing 76.13% of earnings as dividends . The company’s DPS have increased from $0.195 to $0.27 over the last 10 years. The company has been a reliable payer too, not missing a payment during this time. The company outperformed the au consumer durables industry’s earnings growth of 3.70%, reporting an EPS growth of 12.63% over the past 12 months.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.