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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. When the economy is struggling and cyclical companies begin showing signs of weakness, investors often try to put their money into consumer defensive companies in an effort to protect their portfolio during a downturn. Here are my top dividend stocks in the consumer staples industry that could be valuable additions to your current holdings.
Suga International Holdings Limited (SEHK:912)
912 has a enticing dividend yield of 6.70% and distributes 66.53% of its earnings to shareholders as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from HK$0.027 to HK$0.15. When we compare Suga International Holdings’s PE ratio with its industry, the company appears favorable. The HK Consumer Durables industry’s average ratio of 14.3 is above that of Suga International Holdings’s (9.9). Dig deeper into Suga International Holdings here.
Allan International Holdings Limited (SEHK:684)
684 has a large dividend yield of 5.84% and is distributing 75.14% of earnings as dividends . 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. Allan International Holdings seems reasonably priced when looking at its PE ratio (12.9). The industry average suggests that HK Consumer Durables companies are more expensive on average 14.3. More on Allan International Holdings here.
Vedan International (Holdings) Limited (SEHK:2317)
2317 has a large dividend yield of 7.35% and is distributing 59.92% of earnings as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from US$0.043 to US$0.059. The company has a lower PE ratio than the HK Food industry, which interested investors would be happy to see. The company’s PE is currently 8.1 while the industry is sitting higher at 16.4. Interested in Vedan International (Holdings)? 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.