Investors who aren't buying into this recent stock market rally may still want to consider consumer staples stocks. These companies' products are always in demand, no matter what's going on in the economy, allowing cash to roll in consistently.
With what they're making, those companies can not only pass that cash on to investors as dividend payouts but can also reliably increase those payouts.
Two companies that have mastered the art of rewarding shareholders with year-after-year dividend increases are PepsiCo (PEP 1.92%) and Procter & Gamble (PG 0.38%).
Image source: Getty Images.
The beverage and snack master
PepsiCo competes head-to-head with Coca-Cola in the beverage space with sodas, teas, sports drinks, and water. Its large beverage portfolio includes Pepsi, Mountain Dew, Gatorade, and Aquafina.
Unlike Coca-Cola, however, it also has a large snack brand portfolio, which accounted for 58% of its net revenue in 2025. These include Cheetos, Cracker Jack, Rold Gold pretzels, and many others.
The company recently reported its 2026 first-quarter earnings, and it looks to be off to a decent start to the year compared to 2025. Revenue climbed 8.5% to $19.4 billion, operating profit jumped 24% to $3.2 billion, and earnings per share were up 27% to $1.70.
CEO Ramon Laguarta said he was pleased with the results, saying, "As we look ahead, we aim to successfully execute our commercial plans and tightly manage costs to help fund investments to accelerate growth."
For anyone considering investing in PepsiCo, the main benefit will be the dividend, since the stock price has significantly lagged the S&P 500 over the past five years. That's one of the catches with consumer staples stocks: Don't expect them to skyrocket one day like a growth stock. But for investors looking to add portfolio protection through a stable company, Pepsi can easily serve that purpose.
NASDAQ: PEP
Key Data Points
Its dividend currently yields 3.5%, and management confirmed in its recent earnings report that it will increase its payout by 4% in June. When it makes that payout, it will mark 54 years of consecutive dividend increases.
The king of household brands
Procter & Gamble products are staples in many homes, and if you look around, you may see a few in your house. These include Pampers disposable diapers, Tide detergent, Bounty paper towels, Gillette grooming goods, and Crest toothpaste. Even in an economic downturn, people will still need to brush their teeth and wipe up spills.
Selling these essential goods brings in significant revenue, with P&G reporting $1.3 billion in sales in 2025, a 15% increase from 2024. Management projects 2026 will be another good year, with revenue between $1.48 billion and $1.49 billion, around 13% higher than the previous year.
NYSE: PG
Key Data Points
Like PepsiCo, you aren't owning shares of this company for stock price appreciation. Over the last five years, the shares have barely budged higher.
The good news is that the company has been a model of dividend consistency for decades. P&G has increased its payout annually for the last 70 years, and it currently yields slightly below 3%. It also announced on April 14 that it is boosting its dividend by 3%.
Between the two, I prefer PepsiCo because of its higher dividend yield and new focus on growth, but both are reliable companies with consistently increasing dividend payouts.
