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Consumer staples stocks aren’t the first ones you would pick to outperform the stock market. However, these same stocks often have high yields and less volatility than the typical stock. Those parameters make them more suitable for income investors who are approaching retirement. These are three high-yield consumer stocks to buy now.
Procter & Gamble (PG)
Procter & Gamble (NYSE:PG) has been in business since 1837 and has given out dividends for 135 consecutive years. That also includes a stretch of 69 consecutive years of dividend hikes. Procter & Gamble raised its dividend by 5% in April, which indicates they still have plenty of room to boost payouts.
It’s one of the most durable businesses on the stock market and has survived many economic downturns. It comes with a 2.88% yield and has lost about 11% of its value year-to-date. The loss may present a long-term buying opportunity for patient investors who want high cash flow and a reliable company.
Procter & Gamble’s Q3 results show that the company is still growing. Net sales were up by 3% year-over-year, with beauty and grooming products leading the way. Net income jumped by 20% year-over-year, resulting in a 21.2% net profit margin.
Dollar General (DG)
Dollar General (NYSE:DG) shares have taken a beating since 2023, but the long-term drop presented a buying opportunity in 2025 that holds true to this day. The discount store chain offers an alternative for people who have tight budgets. The company had issues with some of its lower-budget consumers pulling back, but revenue and earnings have been on the upswing in recent quarters.
For instance, Q3 results showed that net sales increased by 5.1% year-over-year, with same-store sales up by 2.8% year-over-year. Same-store sales growth is important since it demonstrates existing stores are generating more revenue. It means Dollar General’s customers have been holding strong this year and turning to the discount store retailer for extra space in their budgets.
The turmoil from the past two years has resulted in an attractive 2.36% yield. If Dollar General gets closer to the $150-$200 range it traded at a few years ago, the current price represents a significant opportunity on top of solid cash flow.
Coca-Cola (KO)
Coca-Cola (NYSE:KO) has been producing beverages since 1886, making it one of the longest-lasting American companies. The stock has a 2.88% yield, just like Procter & Gamble, and it is up by 35% over the past five years. It’s one of the few consumer staples stocks that offers a high yield and respectable growth, given that it’s not a high-risk stock.
The company’s growth supports the dividend, as investors saw in Q3 results. During that quarter, Coca-Cola delivered 5% year-over-year revenue growth, with EPS rising by 30% to reach $0.86 per share. Coca-Cola has remained resilient amid a challenging macroeconomic backdrop, rewarding long-term shareholders in the process.
Coca-Cola has reported double-digit revenue growth rates in some international regions. Those markets give Coca-Cola additional runway to keep revenue growth rates within the mid single digits.