Time to Switch to High Dividend Consumer Stocks

In a previous article, we compiled a list of 30 mega-cap U.S. consumer goods stocks and showed that high dividend consumer stocks have over performed the consumer stocks with low dividends since the beginning of this year. Since high dividend stocks usually pay off better and tend to increase their dividend payments over the succeeding 5-10 years, we prefer high dividend stocks over low dividend ones. On the other hand, not all high dividend consumer goods stocks have displayed a stellar performance recently. Defensive investing with high dividend stocks may not yield the best returns in a bull environment. However, investors may need to be more cautious of the upcoming inflationary environment in near future and pick defensive stocks to better protect themselves against inflation. We compiled a list of 38 U.S. consumer goods stocks (the sector classifications are sourced from Finviz) that have a market cap between $4B and... Read more