The broader stock market is still near its highs, but volatility increased over the past few weeks. In other words, the ride has gotten a bit bumpy at times, especially in some of the tech stocks that have done so well for most of the past few years.
It's a great reminder that it's always smart to diversify your portfolio, and steady, dividend-paying consumer goods stocks can complement almost any investing strategy. Bonus points for companies that continue to increase their dividend each year!
Here are three prime examples you can buy for a total investment of less than $250. Tuck them into your portfolio, and sleep well at night while the dividend income pours in.
Image source: Getty Images
1. Realty Income
Real estate is a timeless investment. Realty Income (O +0.35%) is a leading real estate investment trust (REIT), sort of like a publicly traded landlord. The company acquires and leases various properties and distributes cash dividends to shareholders. Realty Income owns more than 15,000 commercial properties and rents primarily to consumer-facing businesses, such as stores and restaurants.
NYSE: O
Key Data Points
The stock is an excellent source of immediate income thanks to its 5.3% yield. Realty Income's strong balance sheet and effective leadership have enabled the company to pay a monthly dividend and raise the payout for 112 consecutive quarters. That means navigating recessions, even a pandemic, along the way. It's hard to go wrong here if steady income is the goal.
2. General Mills
Groceries are a high priority for every consumer. Investors will find General Mills (GIS 3.10%) food and pet food products throughout their local stores, from brands such as Cheerios, Betty Crocker, Green Giant, Blue Buffalo, Bisquick, Chex, and more. The company has annual sales of more than $18 billion.
NYSE: GIS
Key Data Points
General Mills has a long dividend history and has raised the payout for the past six years. The stock is in a slump and trades near its 52-week low. Many consumers are struggling, which can weigh on sales of name-brand products as they trade down to generic brands. However, the stock looks like a bargain here at just 12 times earnings and a 5.3% yield, and earnings still easily fund the dividend.
3. Clorox
Clorox (CLX 3.06%) is known for its namesake bleach brand as well as Liquid-Plumr, Kingsford Charcoal, Hidden Valley Ranch, Burt's Bees, and Brita, and it recently announced a $2.25 billion cash acquisition of hand sanitizer brand Purell. Sustained success has made Clorox stock a Dividend King, meaning it has raised its dividend for at least 50 consecutive years.
NYSE: CLX
Key Data Points
The stock is down after some misfortunes in recent years, which has driven its dividend yield well above historical norms, to about 4.4%. Investors may want to lock in that income while they can. Analyst estimates point to earnings per share rising from $5.95 this year to $6.74 next year, so the stock's lull may not last much longer.
