We recently published a list of Top 10 High Dividend Yielding Consumer Defensive Stocks To Buy. In this article, we are going to take a look at where The Kraft Heinz Company (NASDAQ:KHC) stands against other top high dividend yielding consumer defensive stocks to buy.
Consumer defensive stocks tend to perform well in uncertain times because they sell essential items such as household products, healthcare items, and food and beverages, among others. Such companies also tend to have a strong pricing power which helps them to easily pass on increasing costs to consumers.
The US market continues to struggle due to concerns over tariffs, geopolitical issues, and politics. In such times, consumer defensive stocks offer a way to protect one’s portfolio from this uncertainty.
When such shares also offer a high dividend yield, it performs a killer combination, loved by defensive investors looking to park their money for reliable passive income. We therefore decided to come up with a list of the top 10 high-dividend-yielding consumer defensive stocks.
To come up with the list of top 10 high-dividend consumer defensive stocks, we only considered stocks from the consumer defensive sector with a market cap of at least $10 billion and a dividend yield of at least 4%.
A closeup of an assembly line worker inspecting a newly produced jar of condiments and sauces.
The Kraft Heinz Company (NASDAQ:KHC)
The Kraft Heinz Company is a marketer and manufacturer of food and beverage products. The company’s products include cheese and dairy products, refreshment beverages, meals, coffee, condiments and sauces, meats, and other grocery products.
KHC currently offers an appealing dividend yield of 5.42% to its shareholders. The company paid $1.9 billion in dividends and bought back shares worth $800 million during the last year. As a consistent dividend payer with an attractive dividend yield, this stock continues to attract income-oriented investors.
KHC announced the launch of Crystal Light Vodka Refreshers at the start of this month. The Vodka Refresher is a low-calorie, zero-sugar beverage. It will be available in the Lemonade and Wild Strawberry flavors with an alcohol content of 3.8% by volume. Crystal Light Vodka Refreshers will be available this month at select retailers in the Northeast U.S., with plans for a wider launch, new flavors, and multipack options in 2026.
Director of Beverage Mixes at Kraft Heinz, Jeremy Kross, shared his thoughts by saying:
“With tens of millions of social media videos showcasing creative ways to mix Crystal Light into cocktails, creating a delicious lower-calorie vodka refresher was a natural step for us.”
The 5-year average dividend yield for KHC is 4.48%, so the stock is currently available at a discount for income investors, with the added benefit of share buybacks.
Overall, KHC ranks 4th on our list of top high dividend yielding consumer defensive stocks to buy. While we acknowledge the potential of KHC as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as KHC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
