Coca-Cola, Hormel, and P&G have all achieved at least 60 annual dividend increases.
Each of the companies operates in the resilient consumer staples sector.
All have above-market yields that could help power your portfolio’s long-term growth.
10 stocks we like better than Coca-Cola ›
If you are looking to build wealth, one easy way to do that is by focusing on reliable dividend stocks. One of the best sectors in which to find such stocks is the consumer staples sector. Coca-Cola (NYSE: KO), Hormel Foods (NYSE: HRL), and Procter & Gamble (NYSE: PG) are three strong consumer staples dividend opportunities today. Here’s what you need to know to get started.
If you like to keep things simple, then you will love consumer staples stocks. To start, these companies sell products that you likely use every day. You won’t have to dig into a company’s annual report to figure out what it does. A walk through your local grocery store will keep you informed about what a company is doing.
Image source: Getty Images.
Second, the products that consumer staples makers sell are generally low-cost necessities that are frequently purchased. That doesn’t change because of a recession or bear market, since products like toilet paper and deodorant aren’t items you are likely to go without to save a little money.
That said, some consumer staples companies have proven more successful over time than others. A quick and easy way to screen for the best companies is to examine the list of Dividend Kings, which are companies that have increased their dividends for at least 50 years. Building a dividend record like that requires a strong business model that is executed well in good times and bad.
Coca-Cola, Hormel, and Procter & Gamble are all on the Dividend King list, and each have at least six decades’ worth of annual increases.
Coca-Cola is the world’s largest non-alcoholic beverage company. It has a dividend yield of 2.9%, which is middle of the road for the stock, historically speaking. The stock’s price-to-sales ratio is roughly in line with its five-year average, as well. However, the price-to-earnings and price-to-book value ratios are both below their five-year averages. All in, the stock looks fairly priced to a little cheap.
A reasonable price for a great business is probably a good option for most investors. That said, the real allure right now is that Coca-Cola is performing well despite cost-conscious consumers and concerns about the healthfulness of packaged food products. Through the first nine months of 2025, the company’s organic sales rose 5% and volume rose 1%. That’s a testament to the brand strength Coca-Cola enjoys.
Story Continues
Procter & Gamble’s dividend yield is also 2.9%. That’s toward the higher end of the recent yield range. The company makes consumer products, like the aforementioned toilet paper and deodorant, that few people will willingly live without. The P/S, P/E, and P/B ratios are all below their five-year averages, suggesting the stock is attractively priced. It isn’t a deep value, but for value-conscious investors, it could be a good, conservative selection.
Like Coca-Cola, P&G is navigating the current retail environment in relative stride. In fiscal 2025, the company’s organic sales rose 2%. It matched that number in the first quarter of fiscal 2026. It would be hard to describe these results as “killing it,” but this is the type of company that doesn’t have blowout quarters very often. Slow and steady is the normal pace, and that’s what investors are getting today, despite the broader industry headwinds. If you like to keep life simple, P&G would be a great complement to food-focused Coca-Cola.
For investors willing to venture into a turnaround story, Hormel’s 4.9% yield could be attractive. That yield is near the highest levels in the company’s history. The stock’s P/S and P/B ratios are below their five-year averages, but the company’s recent struggles have left the P/E above its five-year average. Unlike the two consumer staples stocks above, Hormel is performing relatively weakly, and that has investors worried about the future. Historically speaking, it looks attractively valued.
The big story here, however, is a bit more obscure. The philanthropic Hormel Foundation effectively controls the food maker because it owns nearly 47% of the outstanding shares. The Hormel Foundation uses the dividends it collects from Hormel, the company, to support its philanthropic efforts.
As such, it has a vested interest in a reliable and consistent dividend supported by a slow-growing business. This relationship gives Hormel the leeway to make long-term decisions even when Wall Street would prefer short-term actions that may not be great long-term choices. This is what’s going on today.
Hormel’s board of directors has reinstated a former and well-respected CEO, Jeffrey Ettinger. That CEO is overseeing a business overhaul while simultaneously training his successor. This lends weight to the overhaul while also giving the successor time to earn the respect of the company’s employees and investors. This is a multi-year process, but given the company’s long and successful history, it seems likely that the turnaround approach being taken has a high likelihood of success. More aggressive investors could find this an attractive wealth-building stock.
Even for risk-averse investors considering the modest 1.1% yield on offer from the S&P 500 index, Coca-Cola and Procter & Gamble will both appear very enticing. If you are willing to take on a little more risk for a lot more yield, Hormel’s in-process turnaround effort may be a good fit. Whichever Dividend King you pick, all of them could help you easily build wealth in a fairly reliable segment of the market.
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Reuben Gregg Brewer has positions in Procter & Gamble. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
3 Stocks That Could Be Easy Wealth Builders was originally published by The Motley Fool
