Investors searching for reliable income in their portfolio may want to consider several consumer-focused companies that offer enticing dividend yields while also having promisng earnings outlooks and reasonable valuations.
These consumer-oriented businesses often benefit from resilient demand trends, established brands, and steady cash flows that support shareholder returns.
Furthermore, with interest rates still expected to gradually ease, consumer-centric stocks that pay dividends can provide a compelling combination of income and upside potential.
That said, here are three top-rated consumer dividend stocks that have yields above 3% and have made their way onto the coveted Zacks Rank #1 (Strong Buy) list thanks to a favorable trend of positive EPS revisions.
Hasbro – HAS: Toy Industry Leader With Growing Profitability
Stock Price: $84
Hasbro HAS) is one of the world's largest toy and entertainment companies, owning iconic brands such as Monopoly, Nerf, Play-Doh, Magic: The Gathering, and Peppa Pig.
Hasbro has been transforming its business model by focusing on higher-margin franchises, digital gaming initiatives, and licensing opportunities. Magic: The Gathering, a popular globally traded card game (TCG), continues to be a major growth driver, helping to offset broader industry challenges and supporting stronger profitability.
Hasbro's cost-cutting efforts and portfolio optimization initiatives have improved earnings performance, while management remains focused on expanding operating margins and generating healthy free cash flow.
HAS currently offers a 3.33% annual dividend yield, making it attractive for income-oriented investors. Furthermore, improving earnings expectations and a recognized global brand portfolio make Hasbro an appealing opportunity for both yield and growth potential.
Kenvue – KVUE: Defensive Consumer Health Giant
Stock Price: $16
Kenvue KVUE is a leading consumer health company that was spun off from Johnson & Johnson JNJ) in 2023 and owns a portfolio of trusted brands including Tylenol, Neutrogena, Listerine, Band-Aid, and Aveeno.
Kenvue operates in categories that tend to remain resilient across economic cycles, providing a defensive investment profile. Demand for over-the-counter medications, personal care products, and health essentials generally remains stable regardless of broader economic conditions.
On top of that, Kenvue continues to focus on innovation, brand investment, and productivity improvements to drive earnings growth. Its strong market positions and broad global footprint provide competitive advantages that can support long-term revenue stability.
With a dividend yield at nearly 5%, Kenvue offers investors a combination of dependable income and defensive characteristics at a very affordable price tag of under $20 a share. And as a relatively new standalone company, Kenvue also has opportunities to unlock additional operational efficiencies and shareholder value.
Movado Group – MOV: High Yield Meets Strong Balance Sheet
Stock Price: $37
Movado Group MOV) designs, manufactures, and distributes watches and luxury accessories under its own brands including Movado, Concord, Ebel, Olivia Burton, and MVMT, as well as licensed brands for PVH’s PVH) Calvin Klein and Tommy Hilfiger brands, Tapestry’s TPR) Coach brand, and Hugo Boss among others.
While luxury and discretionary spending can fluctuate with economic conditions, Movado's strong balance sheet and disciplined capital allocation have helped the company navigate industry cycles effectively. To that point, Movado has historically maintained a conservative financial profile, providing flexibility during periods of softer demand.
Movado has also benefited from its diversified brand portfolio and international presence. Management has focused on inventory discipline and operational efficiency while returning capital to shareholders through its nearly 4% dividend yield.
Being one of the higher-yielding names in the consumer discretionary space, Movado’s attractive valuation, healthy balance sheet, and shareholder-friendly capital return strategy may appeal to value and income investors alike.
Bottom Line
For investors seeking income without sacrificing exposure to consumer-focused businesses, Hasbro, Kenvue, and Movado Group deserve consideration. Each stock currently offers a dividend yield above 3%, maintains recognizable consumer brands, and possesses catalysts that have supported future earnings growth.
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Hasbro, Inc. (HAS): Free Stock Analysis Report
Movado Group Inc. (MOV): Free Stock Analysis Report
Kenvue Inc. (KVUE): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
PVH Corp. (PVH): Free Stock Analysis Report
Tapestry, Inc. (TPR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).