Consumer defensive companies tend to be non-cyclical, which means their products and services are in constant demand irrespective of the economic cycle. Consumption also tends to sit at a relatively steady level, regardless of price. The sector is not susceptible to business cycles and performs relatively better during bad times, which means it may provide a strong reliable stream of income through dividend payouts. If you’re a buy-and-hold investor, these healthy dividend stocks in the consumer staples industry can generously contribute to your monthly portfolio income.
Best World International Limited (SGX:CGN)
CGN has a substantial dividend yield of 4.03% and is distributing 43.63% of earnings as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from S$0.0087 to S$0.052. Continue research on Best World International here.
First Resources Limited (SGX:EB5)
EB5 has a good-sized dividend yield of 2.18% and their current payout ratio is 29.27% , with the expected payout in three years being 29.74%. While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from US$0.028 to US$0.034. More detail on First Resources here.
Olam International Limited (SGX:O32)
O32 has a solid dividend yield of 3.48% and their current payout ratio is 40.27% . Dividends per share have increased during the past 10 years, but there have been a couple hiccups. However, they have historically always picked up again. The company recorded earnings growth of 64.95% in the past year, comparing favorably with the oceania consumer retailing industry average of 14.19%. Interested in Olam International? Find out more here.
For more solid dividend paying companies to add to your portfolio, explore this 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.