Consumer Staples Stocks Shine With Attractive Yields

The S&P 500's average yield of 1.1% pales in comparison to the attractive yields offered by three consumer staples stocks: Coca-Cola (NYSE: KO), PepsiCo (NASDAQ: PEP), and Procter & Gamble (NYSE: PG).

Coca-Cola, with its massive brand portfolio and strong margins, has increased its dividend for 64 straight years. It currently offers a forward yield of about 2.4% and pays out roughly two-thirds of its earnings. The company's trailing 12-month profit margin has climbed from the low 20s to over 28%, and analysts expect earnings to grow at an annualized rate of 7% in the coming years.

PepsiCo, with its drinks-and-snacks mix, has paid a consistent dividend since 1965. The company currently offers a forward yield of around 4.2% while paying out about three-quarters of earnings. PepsiCo's revenue rose nearly 7% year over year in the first half, supported by balanced unit volume growth across both food and beverages.

Procter & Gamble owns a powerhouse lineup of brands across household, beauty, and personal care, with 70 consecutive years of dividend increases. The stock currently offers a forward yield of about 3% while paying out roughly two-thirds of earnings. P&G has faced higher costs for raw materials, energy, and transportation but countered them with $2.8 billion in realized pretax productivity savings.