At what age should I start receiving Social Security benefits?
Find the best age to claim Social Security benefits based on calculations and life expectancy. Should I wait or apply early?
If you’re looking to build wealth, one easy way to do so is to focus on reliable dividend stocks. One of the best sectors to find stocks like this is the consumer staples sector. Coca-Cola, Hormel Foods, and Procter & Gamble are three of today’s leading consumer-facing companies with strong dividend opportunities. Here’s what you need to know to get started.
Why staple stocks?
If you want to keep things simple, you’ll love consumer staples stocks. First, these companies sell products that you are likely to use every day. You don’t need to dig into a company’s annual report to understand its contents. A walk through your local grocery store will give you an idea of what companies are doing.
Second, the products sold by consumer staples manufacturers are typically low-priced necessities that are frequently purchased. Products like toilet paper and deodorant are not must-do items to save a little money, and that’s true even in a recession or bear market.
That being said, some consumer staples companies have proven more successful than others over time. A quick and easy way to screen the best companies is to check out our list of Dividend Kings. Dividend Kings are companies that have increased their dividends for at least 50 years. Building a dividend record like this requires a strong business model that executes well through good times and bad.
Coca-Cola, Hormel, and Procter & Gamble are all on the list of Dividend Kings, each with at least 60 years of annual pay increases.
What do you get?
Coca-Cola is the world’s largest non-alcoholic beverage company. The dividend yield is 2.9%, which is historically moderate for this stock. The company’s price-to-sales ratio is also roughly in line with the average over the past five years. However, both the price-to-earnings ratio and the price-to-book ratio are below their averages over the past five years. Overall, the stock looks fairly priced to slightly undervalued.
A reasonable price for a great business is probably a good option for most investors. That said, the real attraction right now is that Coca-Cola is doing well despite cost-conscious consumers and health concerns about packaged foods. Through the first nine months of 2025, the company’s organic sales increased by 5% and sales volume increased by 1%. This is a testament to Coca-Cola’s brand power.
Procter & Gamble’s dividend yield is also 2.9%. This is near the high end of the recent yield range. The company makes consumer products that few people could live without, such as the aforementioned toilet paper and deodorant. The P/S, P/E, and P/B ratios are all below their averages over the past five years, suggesting the stock is attractively priced. This isn’t a deep value, but it could be a good conservative choice for value-conscious investors.
Like Coca-Cola, P&G has weathered the current retail environment relatively well. The company’s organic sales increased by 2% in fiscal 2025. This number was in line with the first quarter of 2026. It may be difficult to describe this result as “catastrophic,” but this is the type of company that doesn’t have many flat quarters. Slow and steady is the normal pace, and that’s what investors are getting today despite industry-wide headwinds. If you want to live a simple life, P&G can be a great complement to food-focused Coca-Cola.
For investors looking to play the turnaround story, Hormel’s 4.9% yield may be attractive. This yield is close to the highest level in the company’s history. Although the company’s P/S and P/B ratios are below the average for the past five years, the company’s recent struggles have caused the P/E ratio to be above the average for the past five years. Unlike the two consumer staples stocks mentioned above, Hormel’s performance has been relatively weak, leaving investors concerned about its future. Historically, it looks attractively valuable.
However, the big story here is a little more vague. The philanthropic Hormel Foundation owns nearly 47% of the outstanding stock, giving it effective control over the food maker. The Hormel Foundation uses dividends collected from Hormel to support charitable causes.
As such, the company has a vested interest in a reliable and consistent dividend backed by a low-growth business. This relationship gives Hormel leeway to make long-term decisions even when Wall Street prefers short-term actions that may not be good choices in the long run. This is what is happening today.
Hormel’s board of directors has reinstated its highly respected former CEO, Jeffrey Ettinger. The CEO is overseeing a review of the business while also training his successor. This puts emphasis on the overhaul while also giving the successor time to earn the respect of employees and investors. This is a process that will take several years, but given the company’s long and successful history, the turnaround approach currently being taken seems likely to be successful. For more aggressive investors, this may seem like an attractive wealth-building stock.
3 high yield options
Even for risk-averse investors, both Coca-Cola and Procter & Gamble will look very attractive given the S&P 500’s modest 1.1% yield. If you’re willing to take some risk for higher yields, Hormel’s in-process regeneration efforts may be for you. No matter which Dividend King you choose, they all help you easily build wealth in a fairly reliable segment of the market.
Reuben Gregg Brewer has a position at Procter & Gamble. The Motley Fool has no position in any stocks mentioned. The Motley Fool has a disclosure policy.
The Motley Fool is a USA TODAY content partner providing financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.
