Most consumer stocks might not draw as much attention as the hottest tech companies. But many compensate for this with long-term income potential.

Some consumer stocks have increased their dividends often enough to achieve Dividend Aristocrat status. Some also pay well above the average S&P 500 dividend yield of 1.5%, and offer the promise of future increases. Hence, investors looking for generous, growing income streams in the consumer sector might want to consider Target (TGT -0.70%) and Walgreens Boots Alliance (WBA -1.33%), which generate about $500 each of yearly passive income with an approximate $29,400 investment.

1. Target

Although retailing remains a competitive business, Target has developed an edge with dividend investors. It recently approved a 20% dividend increase, and at its current annual level of $4.32 per share, it yields about 2.6%. Moreover, with 51 consecutive yearly dividend increases, it has moved beyond Aristocrat status to become one of the few Dividend Kings. At this price, buying 116 shares for just under $19,400 would take an investor just beyond halfway to $1,000 in annual passive income .

Nonetheless, investors might have to act on faith, at least for now. The need to unload excess inventory has crushed free cash flow. In the first six months of 2022, Target reported negative cash flow of $2.6 billion and a dividend expense of $842 million. Since liquidity has fallen to $1.1 billion, negative free cash flow could lead to worries about the payout.

But surrendering Dividend King status would probably harm a stock's reputation. For this reason, such companies tend to maintain annual payout hikes if possible. So it's unlikely Target would have raised its dividend 20% if such an increase threatened the stability of the payout.

Moreover, it has built a decades-long history of prospering amid competitive challenges from Amazon, Costco, Walmart, and others. Its presence in all 50 states; selection of affordable, higher-scale products, and adoption of omnichannel retailing have helped it maintain growth.

The company reported revenue of just over $50 billion in the first two quarters of 2022, a year-over-year increase of 4%. And it earned $1.2 billion in net income despite the inventory crisis, though earnings fell 70% over the same period a year ago.

The inventory crisis led to a sell-off in the stock, taking its price-to-earnings (P/E) ratio to 15. With Walmart's P/E of 30, Target stock could also make some gains as the inventory crisis abates, and its valuation catches up to that of Walmart.

2. Walgreens Boots Alliance

Amid its industry challenges, Walgreens has become one of the more stable dividend stocks. It recently approved its 47th consecutive annual dividend increase, taking its yearly payout to $1.92 per share. At current prices, this takes the cash yield to about 5%, dramatically outperforming archival CVS's 2.1% return. And Walgreens's current yield means an investment of about $10,000 would earn $500 in passive income.

In the first nine months of fiscal 2022, Walgreens generated $2.6 billion in free cash flow. It paid out $1.25 billion in dividends during the same period, which should lessen concerns about any danger lurking for its payout.

Walgreens remains a force in its industry, even amid considerable competition that extends well beyond CVS to prominent players such as Walmart, Costco, and Amazon.

This has pressured its stock considerably: It lost about half of its value over the last five years. That compares poorly to CVS, which rose by 34% over the same period.

Despite these struggles, a partnership with VillageMD will offer access to doctors at 500 to 700 stores, a service that should give it a competitive advantage. And its U.K.-based Boots pharmacy helped its international segment grow revenue by 11%. While making up only 18% of revenue, that segment significantly boosted Walgreens as its U.S. sales registered barely 1% growth.

Overall, net sales for the first nine months of fiscal 2022 came in at $100 billion, a 2% increase compared with the same period in fiscal 2021. Adjusted net income also rose by about 2%, to just under $3.7 billion.

Still, the stock sells for just seven times earnings, well under CVS' 17 earnings multiple. Between that valuation and the dividend yield, Walgreens seems poised to deliver returns for income investors.