In this article, we discuss 5 dividend paying consumer defensive stocks. If you want to see more consumer defensive stocks that pay dividends, check out 10 Dividend Paying Consumer Defensive Stocks.
5. Anheuser-Busch InBev SA/NV (NYSE:BUD)
Dividend Yield as of April 1: 1.91%
Number of Hedge Fund Holders: 17
Anheuser-Busch InBev SA/NV (NYSE:BUD) was founded in 1366 and is headquartered in Leuven, Belgium. The company manufactures and distributes alcoholic beverages and soft drinks worldwide. Some of the global beer brands under Anheuser-Busch InBev SA/NV (NYSE:BUD) include Budweiser, Corona, and Stella Artois.
On February 26, 2021 Anheuser-Busch InBev SA/NV (NYSE:BUD) declared a €0.50 per share annual dividend. The dividend was paid to shareholders on June 3 last year. Anheuser-Busch InBev SA/NV (NYSE:BUD)’s dividend yield stood at 1.91% as of April 1.
Barclays analyst Laurence Whyatt on March 14 maintained an Overweight rating on Anheuser-Busch InBev SA/NV (NYSE:BUD) and raised the price target on the shares to €83 from €82.
According to Insider Monkey’s Q4 data, Fisher Asset Management is the largest stakeholder of Anheuser-Busch InBev SA/NV (NYSE:BUD), with 8.2 million shares worth approximately $502 million. Overall, 17 hedge funds were bullish on the stock at the end of December 2021, up from 11 funds in the earlier quarter.
Here is what Broyhill Asset Management has to say about Anheuser-Busch InBev SA/NV (NYSE:BUD) in its Q4 2021 investor letter:
“Shares of ABI struggled to buck the double-digit decline in emerging market indices in the second half of the year. Consensus concerns around commodity cost headwinds certainly didn’t help matters, but beyond short term margin pressures, both businesses continue to grow their profits as well as their economic moats. ABI controls over a quarter of the nearly $600 billion global beer market, based on Euromonitor data, and remains well positioned for a rebound in post-pandemic industry sales.”
4. Dole plc (NYSE:DOLE)
Dividend Yield as of April 1: 2.52%
Number of Hedge Fund Holders: 16
Dole plc (NYSE:DOLE) is headquartered in Dublin, Ireland. The company supplies fresh fruits and vegetables to retailers and wholesalers worldwide. Dole plc (NYSE:DOLE)’s dividend yield on April 1 stood at 2.52%.
Dole plc (NYSE:DOLE) posted its fourth quarter results on March 15, announcing earnings per share of $0.14, beating estimates by $0.04. Revenue for the period amounted to $2.24 billion, surpassing market consensus by $66.20 million.
On March 8, Deutsche Bank analyst Christopher Barnes reiterated a Buy recommendation on Dole plc (NYSE:DOLE) but lowered the price target to $17 from $19. The company is unlikely to avoid feeling pressure from inflation, supply chain bottlenecks, and volatile supply/demand headwinds, the analyst told investors in a research note.
According to the fourth quarter database of Insider Monkey, 16 hedge funds held stakes worth $151 million in Dole plc (NYSE:DOLE). Ian Simm’s Impax Asset Management is the biggest shareholder of the company, with 3.4 million shares worth $45.7 million.
3. The Coca-Cola Company (NYSE:KO)
Dividend Yield as of April 1: 2.80%
Number of Hedge Fund Holders: 70
The Coca-Cola Company (NYSE:KO), a multinational beverage corporation, is one of the most notable dividend paying consumer defensive stocks. The Coca-Cola Company (NYSE:KO) is a significant dividend king, with 60 years of consecutive dividend increases under its belt.
On February 17, The Coca-Cola Company (NYSE:KO) declared a $0.44 per share quarterly dividend, a 4.8% increase from its prior dividend of $0.42. The dividend was distributed on April 1, to shareholders of the company as of March 15. The stock delivers a yield of 2.80% as of April 1.
Guggenheim analyst Laurent Grandet on April 1 raised the price target on The Coca-Cola Company (NYSE:KO) to $68 from $67 and kept a Buy rating on the shares. The analyst made the bull case for The Coca-Cola Company (NYSE:KO) given its plan to acquire Monster Beverage Corporation (NASDAQ:MNST), as its valuation is now approaching an all-time low.
Among the hedge funds tracked by Insider Monkey, 70 funds were bullish on The Coca-Cola Company (NYSE:KO), compared to 61 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the biggest shareholder of the company, owning 400 million shares worth $23.6 billion.
2. Kellogg Company (NYSE:K)
Dividend Yield as of April 1: 3.54%
Number of Hedge Fund Holders: 31
Kellogg Company (NYSE:K) is a Michigan-based multinational food manufacturing corporation that markets and sells cereals, crackers, toaster pastries, cereal bars, snacks, frozen waffles, and vegetarian foods. Kellogg Company (NYSE:K)’s dividend yield on April 1 came in at 3.54%.
On February 18, Kellogg Company (NYSE:K) declared a quarterly dividend of $0.58 per share, in line with previous. The dividend was distributed on March 15, to shareholders of the company as of March 1.
The company published its fourth quarter earnings on February 10, posting an EPS of $0.83, beating estimates by $0.04. The Q4 revenue came in at $3.42 billion, outperforming analysts’ predictions by $28.64 million.
UBS analyst Cody Ross initiated coverage of Kellogg Company (NYSE:K) on March 30 with a Buy rating and a $73 price target. The analyst noted that Kellogg Company (NYSE:K)’s consumers are currently “the healthiest they have been in some time”, with record high net worth and increasing wages. In this macro environment, the analyst prefers companies with greater pricing power. Margin expansion is also driven by investment in innovation and a strong brand equity, he added.
According to the Q4 database of Insider Monkey, 31 hedge funds were bullish on Kellogg Company (NYSE:K), up from 22 funds in the prior quarter. Renaissance Technologies is the biggest shareholder of the company, with 2.1 million shares worth $139.2 million.
1. Newell Brands Inc. (NASDAQ:NWL)
Dividend Yield as of April 1: 4.30%
Number of Hedge Fund Holders: 26
Newell Brands Inc. (NASDAQ:NWL) is a Georgia-based producer of consumer and commercial products. The company operates via five segments – Commercial Solutions, Home Appliances, Home Solutions, Learning and Development, and Outdoor and Recreation.
On February 3, Newell Brands Inc. (NASDAQ:NWL) declared a quarterly dividend of $0.23 per share. The dividend was paid on March 15, to shareholders of record on February 28. The stock delivers a dividend yield of 4.30% as of April 1.
JPMorgan analyst Andrea Teixeira on March 30 maintained an Overweight rating on Newell Brands Inc. (NASDAQ:NWL) but lowered the price target on the shares to $26 from $29. With the ongoing Russia/Ukraine conflict and its impact on commodities prices, the analyst expects demand to remain resilient, noting that consumers continue to prefer brands over private labels.
The Q4 database of Insider Monkey suggests that 26 hedge funds were bullish on Newell Brands Inc. (NASDAQ:NWL), with collective stakes worth $1.75 billion. Carl Icahn’s Icahn Capital LP held the biggest position in the company, owning 43.70 million shares worth $954.5 million.
You can also take a look at Top 10 Blue Chip Stocks to Buy in 2022 and 10 Best High Dividend Stocks to Buy Now.
