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 close-up of an array of tobacco products, emphasizing the selection and consumer choice.
10. Hormel Foods Corporation (NYSE:HRL)
Hormel Foods makes and sells various food products, including nuts and meats. The end market of the company mainly consists of commercial customers, including food service operators and convenience stores. The stock’s dividend yield is currently hovering around the 4% mark, which is well above the 5-year average of 2.4%.
The stock is also undervalued when one looks at the price-to-book ratio, which currently stands at 2 against a 5-year average of 3.03. In the context of the 2025 guidance that the company announced last month, this price level looks quite attractive.
At the earnings call last month, the company’s management reaffirmed the 2025 guidance despite increasing concerns about inflation and tariffs. It expects about $100 million to $150 million in incremental profits during the fiscal year from the transform and modernize initiative, aimed at improving the supply chain and its product portfolio.
The investment opportunity has arisen because the Q2 performance is expected to be the same as Q1. It is in the second half of the year that the value-added turkey and Planters product line recovery will both act as a tailwind, driving the expected growth for the year.
9. Target Corporation (NYSE:TGT)
Target Corporation is a general merchandise retailer that provides shoes, apparel, accessories, beauty products, and jewelry. The company also offers food and beverage products, electronics, dry and perishable groceries, and luggage. Apart from being a dividend king (50 consecutive years of dividend growth), it offers a healthy dividend yield of 4.31%.
TGT has a track record of increasing its dividend yield for the past 56 years. Its dividend grew at an annualized growth rate of 11.23% over the past 5 years. The company announced its fiscal 2024 financial results last month, reporting a solid performance despite tariff-related concerns. Net sales were slightly lower than the previous year but were in line with estimates.
The decline in sales was partly because fiscal 2023 gained an additional week’s advantage. Investors will be glad to know that the company is constantly improving its gross margins, so the minor reduction in topline isn’t a big deal.
Target Corporation is among the top 10 most oversold stocks within the S&P 500 as per its RSI. This is due to the significant decline in the share price in 2025, as the price fell 23% this year. The dip is a great opportunity for income investors looking at reliable dividend income from a solid business.
8. The Campbell’s Company (NASDAQ:CPB)
The Campbell’s Company is a manufacturer and marketer of food and beverage products. It operates in two segments: Snacks and Meals & Beverages. The company provides Campbell’s condensed and ready-to-serve soups, Campbell’s tomato juice, Prego pasta sauces, frozen products, and other products.
CPB stock price continues to struggle, experiencing a significant decline of 9% so far this year. Due to this price drop, the company now has an attractive dividend yield of 4.10%. This makes CPB a compelling investment opportunity, especially for income-oriented investors.
The Campbell’s Company announced its Q2 2025 results a few days ago and boasted a 9% rise in net sales with a 2% decline in organic sales. The company has now managed to maintain a streak of increasing volume for 4 consecutive quarters.
The company also revised its fiscal 2025 guidance after the recent earnings. It now expects organic net sales to be flat or decline by up to 2% this year, while adjusted EBIT is projected to decrease by 3-5%. This guidance revision does not include the potential tariff and regulatory risks. The management is developing mitigation plans to address these risks.
7. Archer-Daniels-Midland Company (NYSE:ADM)
Archer-Daniels-Midland Company processes, stores, procures, transports, and merchandises agricultural commodities, flavors, ingredients, and solutions. The company operates through Carbohydrate Solutions, Ag Services and Oilseeds, and Nutrition segments. It continues to draw investors’ attention by offering a dividend yield of 4.43%. As a consistent dividend payer, the company has demonstrated its commitment to shareholder returns with an increasing and uninterrupted dividend payment for 53 consecutive years.
The company announced its Q4 results last month, which were below analysts’ estimates. Operating profits fell 32% YoY and cash flows from operations also decreased by 30%. The poor earnings came as a result of sector-wide instability, not company-specific issues.
Based on the results, management expects 1st half of 2025 to be challenging with significantly reduced canola crush and soybean margin. According to ADM CFO Monish Patolawala, cost savings and efficiency improvements will help mitigate some of the market challenges the company is expected to face going forward. After losing a quarter of its share value in the last year, the stock is now at a level where people can buy a Dividend King with their eyes closed and come out on top.
6. General Mills, Inc. (NYSE:GIS)
General Mills, Inc. is a marketer and manufacturer of branded consumer foods worldwide. It operates in International, North America Foodservice, North America Retail, and pet segments. The company provides ready-to-eat cereals, soup, refrigerated yogurt, refrigerated and frozen dough products, grain, and other products. It currently offers a healthy dividend yield of 4.09%.
With a dividend yield of over 4%, the stock is very attractive for dividend-focused investors. Thanks to a downturn since 2023, the dividend yield is at elevated levels compared to the recent past. The company has shown its dedication to shareholder returns by returning $11.1 billion in the form of dividends and share buybacks from FY2019 to FY2024.
GIS stock has been underperforming recently, mainly due to its weak top-line and bottom-line growth. In Q3 2025, net sales were down by 5% YoY while adjusted diluted EPS also declined by 15%.
The company also updated its fiscal 2025 guidance and now expects a 2% to 1.5% decrease in organic net sales. Adjusted diluted EPS is also forecasted to drop by 8% to 7% in constant currency. There is considerable pessimism among investors when it comes to GIS but people taking a fresh entry in the stock are being presented with a great investing opportunity as a result.
5. Conagra Brands, Inc. (NYSE:CAG)
Conagra Brands, Inc. is a consumer packaged goods food company operating mainly in the US. It operates in Refrigerated & Frozen, food service, Grocery & Snacks, and International segments. The company offers an attractive dividend yield of 5.45%.
There is no denying the fact that the stock has considerable headwinds, which have elevated the dividend yield. Goldman Sachs downgraded the stock last month, bringing the target price to $26, the same level it currently trades at.
CAG recently reduced its FY25 guidance because of supply chain issues. Increasing competition in frozen foods from peers has dented the company’s ability to increase organic sales. To make matters worse, margins are expected to remain under pressure well into 2026 as per Goldman:
“We have observed further increases in several of its key commodities over the past couple of months, which could lead to incremental margin pressure in FY26.”
Unlike many other dividend income stocks, CAG’s yield hasn’t always been this high. Recent challenges have brought it to a level where investors with a slightly higher risk tolerance can invest in the stock. If the yield normalizes back to the 2.5% mark without any dent on the payout amount, there could be significant upside to the stock.
4. 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.
3. Ambev S.A. (NYSE:ABEV)
Ambev S.A. is the producer, distributor, and seller of draft beer, malt and food, beer, carbonated soft drinks, non-alcoholic and non-carbonated products, and other alcoholic beverages.
The company is currently trading at a dividend yield of 5.53%. The company reiterated its resolve to continue this payout last year when it allocated R$2 billion in share repurchases and R$6.7 billion in dividends last year. Moreover, according to 19 different analyst ratings, ABEV has the highest target price of $5, which means it could be more than double from the current levels if the bull thesis plays out.
Moving forward, the company expects the cost of goods sold to grow between 5.5% and 8.5% due to the decrease in the Brazilian Real’s purchasing power and higher aluminum costs. CEO Lisboa said the firm will focus on enhancing pricing strategies to drive margin expansion, though ideally it will want the currency headwinds to subside for a more predictable business performance.
2. Altria Group, Inc. (NYSE:MO)
Altria Group, Inc. is a manufacturer and distributor of oral tobacco and smokeable products. It offers its products under different brand names. The company distributes its products to large retail organizations like chain stores and distributors. The stock’s dividend yield is currently above 7%, offering much higher returns than fixed income assets.
Altria’s latest quarterly earnings surpassed market expectations as the company registered a strong double beat. Revenue growth was recorded at 1.63% YoY while the EPS and gross margins also improved.
At the end of FY2024, the company had a stable financial position, ending with a $3.13 billion total cash balance, higher than the previous quarter. It also managed to improve its net debt position, further adding to the sustainability of its dividend.
Altria also announced a new share buyback program worth $1 billion in 2025, highlighting the company’s focus on shareholder returns. Management expects non-GAAP EPS to grow in a range between 2% to 5% going forward, a rate that should help it sustain an extraordinarily high yield. In case investors are curious, the current yield is still below the 5-year average yield of 7.9%!
1. British American Tobacco p.l.c. (NYSE:BTI)
British American Tobacco p.l.c. is a nicotine and tobacco products maker. The company offers combustible cigarettes; heated, vapour, and modern oral nicotine products; and traditional oral products. It sells its products under different brands, including Rothmans, Natural American Spirit, Lucky Strike, Velo, Vuse, and Camel, among others.
BTI stands out as a compelling investment opportunity in today’s market because of its healthy dividend yield of 7.34%. With its discounted valuation and high dividend yield, the company provides a combination of growth and income generation to investors.
The company’s stock has performed well so far this year after an impressive 2024. The future guidance has a lot to do with this performance. As per the guidance, the expected revenue growth for 2025 is 1% while for 2026 it is 3% to 5%. Adjusted profits from operations are projected to grow by 1.5% to 2.5% in 2025, followed by a 4% to 6% estimated growth in 2026.
CFO Soraya Benchikh echoed similar optimism about the company’s future by saying:
“Having achieved close to GBP 900 million in savings over the last 2 years, we are on track to deliver more than GBP 1.2 billion by year-end… Beyond 2025, we aim to simplify combustibles and drive scale benefits in New Categories, targeting an additional GBP 2 billion in savings by 2030.”
BTI has consistently paid out a high dividend yield with its 5-year average at 7.7%. The buybacks add further shareholder value, making it our top choice for dividend investors.
BTI is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held BTI at the end of the fourth quarter, which was 24 in the previous quarter. While we acknowledge the potential of BTI 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 BTI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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