I'd Put $100 Into Each of These 3 Dividend Stocks and Lose the Password
These three consumer goods stocks sell the kind of staples people buy without thinking, which is exactly why they're worth buying and forgetting about.
Investors considering a $300 investment across three consumer goods companies may find little reason to check in on their holdings for years to come. Mondelez International (MDLZ -0.47%) stands out with its portfolio of established brands like Oreo, Cadbury, and Ritz, which are sold in over 150 countries due to ingrained consumer habits.
The company has raised its dividend for 13 consecutive years, with a consistent growth rate of around 10% annually over the past five years. Snacking is a category that doesn't change much from one decade to the next, as snacking locations remain consistent, from checkout aisles to vending machines.
Tyson Foods (TSN +0.41%), established in 1935, processes approximately one-fifth of the meat sold in the United States. The company's scale, with its slaughterhouses, processing plants, and distribution networks, makes it challenging for new entrants to challenge its position. Tyson has increased its dividend for 14 consecutive years, benefiting from population growth and a steadier business that doesn't rely on single product trends.
Kraft Heinz (KHC -0.09%) offers well-known brands like Heinz ketchup, Kraft Mac & Cheese, Oscar Mayer, Philadelphia cream cheese, and Jell-O, which are staples in most American kitchens. The company did lower its dividend in 2019 and settled SEC charges in 2021 for overstating earnings, but it has maintained its quarterly payout for over 27 consecutive quarters. Kraft Heinz's deep brand portfolio and stabilized balance sheet provide a strong foundation for long-term investors.
These three companies focus on selling everyday essentials that people purchase without much thought, making them attractive options for long-term dividend investing. While Kraft has addressed past missteps and strengthened its financial position, Tyson thrives on the consistent demand for meat. Mondelez benefits from its brands' valuable shelf space and consumer loyalty.
Although these stocks may not be particularly exciting, their durable businesses and loyal customer bases could reward patient investors who buy, reinvest dividends, and hold for the long term.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
