It’s a good time to be a consumer staples investor. Many of the biggest names are trading at or near their 52-week lows, and several companies are offering their highest starting yields in years.

Here are three dividend dogs worth highlighting.

Long-time subscribers may be sick of hearing me talk about Abbott Laboratories, but this is a blue-chip healthcare company that has delivered strong long-term returns despite repeated bouts of short-term volatility.

Abbott develops and sells healthcare products to both retail consumers and medical professionals. The company’s portfolio includes Ensure nutrition shakes and Pedialyte electrolyte drinks, as well as clinical products such as diagnostic tests and pacemakers.

The company is a Dividend Centenarian, having paid uninterrupted quarterly dividends since 1924. Abbott has also raised its dividend for 54 consecutive years.

Every so often, Abbott shares sell off, with the stock frequently dipping into the $90 range.

This happened in 2023, only for Abbott to rebound into the $110 range by 2024.

Another sell-off is occurring right now, with Abbott trading at a multiyear low and a price to earnings ratio of just 16.62. Shares offer a starting yield of 2.77%, backed by a 5-year compound annual dividend growth rate of 8.54% and a well-covered payout ratio of 46.83%.

This is a well-established blue-chip healthcare staple offering one of its highest starting yields in recent years, and Abbott continues to grow its payout at a rate that outpaces inflation.

I’ve been buying this stock almost every month since the sell-off began.

If you’re looking for an established healthcare player that sells to both consumers and medical institutions, Abbott is 100% worth a look.

A distant third in the “Big Three” pantheon of soda companies.

Despite producing a cola that is, in my opinion, far superior to Coke or Pepsi, Keurig Dr Pepper never seems to get much investor attention.

This is a multibillion-dollar beverage conglomerate that produces coffee, tea, coffee makers, soft drinks, and flavored waters. Its brands include 7UP, A&W Root Beer, Cactus Cooler, Dr Pepper, Peñafiel, Snapple, and Hawaiian Punch.

Keurig Dr Pepper is in the process of acquiring JDE Peet’s, after which the company will split into two separate publicly traded entities. “Global Coffee Co.” will focus on coffee, while “Beverage Co.” will include Dr Pepper, Canada Dry, Mott’s, A&W, Peñafiel, GHOST, 7UP, Snapple, Clamato, and other brands.

The stock sold off hard following this announcement. Keurig Dr Pepper now trades at a price to earnings ratio of 12.79 while offering a 3.15% starting yield, backed by a 5-year compound annual dividend growth rate of 8.92% and a payout ratio of 45.54%.

Keurig Dr Pepper owns a large portfolio of popular beverages, and the upcoming business split should create two more clearly defined companies. This could provide a catalyst for capital appreciation. In the meantime, investors can collect a 3%+ yield supported by a history of inflation-beating dividend growth.

A long-time holding of mine, based on the classic Peter Lynch adage to “invest in what you like.” McCormick makes spices, seasonings, condiments, and other culinary products. Its portfolio includes recognizable brands such as French’s, Frank’s RedHot, Lawry’s, and OLD BAY, alongside its flagship McCormick brand.

Selling spices and seasonings may sound like a simple business, but McCormick shares are surprisingly volatile.

The stock is down on news of an upcoming acquisition. The company plans to buy Unilever’s food division, which would add brands such as Hellmann’s, Knorr, and Maille.

Investors are not happy, and McCormick stock has dropped nearly 25% year-to-date.

The company now trades at a price to earnings ratio of 16.63 while offering a 3.73% starting yield, backed by a 5-year compound annual dividend growth rate of 7.43% and a safe payout ratio of 59.80%.

McCormick has paid quarterly dividends every year since 1925 and has raised its dividend for 40 consecutive years.

This is a blue-chip consumer staple that has rewarded shareholders for over a century, and I’m happy to buy more shares. If you’re looking for a food-sector stock that consistently raises its dividend at a rate that outpaces inflation while maintaining a payout ratio under 60%, McCormick is worth a look.

The consumer staples sector is seeing an uptick in mergers this year, and that’s putting pressure on stock prices across several blue-chip names.

Kimberly-Clark is down on news of its Kenvue acquisition. Keurig Dr Pepper is down due to its acquisition and separation plans. McCormick is down on its acquisition strategy.

And Abbott?

That one is simply down due to lower-than-expected earnings.

Either way, there are plenty of opportunities in the sector right now. Consumer staples are starting to remind me of utilities a few years ago, when nobody wanted to own functional, shareholder-friendly companies that consistently paid and raised dividends.

Utility stocks eventually came roaring back, and the Vanguard Utilities Index Fund ETF ($VPU) is now outperforming the Vanguard 500 Index Fund ETF ($VOO) year-to-date.

Will the same thing happen with consumer staples once sentiment reverses?

Maybe. In the meantime, investors can lock in 3%+ starting yields on quality blue-chip businesses that consistently pay and raise their dividends.

In 2018, Brandon and Jennifer Robinson licensed a single mini-golf pub. They had a hunch people wanted more than just a bar. They wanted an experience.

They were more than right.

Five locations later, Tipsy Putt is boasting 5,188 active members and 22x revenue growth.

Over 10,000 people have downloaded Tipsy Putt’s app. The company has been featured on the Dan Patrick Show, and celebrity guests keep walking through the doors.

This is a proven, operating brand with a loyal fanbase and momentum that keeps compounding.

Now the Robinsons are opening their San Francisco flagship, and retail investors can own shares in the location before the 2027 grand opening.

Invest in Tipsy Putt’s SF location.

I’m Ready to Invest

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Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.