Consumer goods companies generally get the majority of their revenue from the consumer, so they can be fickle businesses -- excellent when consumers are spending and not so hot when they're pulling back. But for ones that have segments that sell to both the enterprise and the consumer, revenue growth may not be astronomical, but they're likely mature, meaning they can offer investors protection from steep downturns.
Buying shares of dividend-paying companies in the consumer goods sector, especially ones that have above-average yields, can help investors boast market-beating returns, with a caveat. Oftentimes these companies are either in slow industries or may have seen their stock prices fall sharply, increasing the yield for the wrong reason.
Large companies with plenty of international exposure, including names like Ford Motor (F - Get Report) , B&G Foods (BGS - Get Report) and Pitney Bowes (PBI - Get Report) and others have high-dividend yields that investors should be aware of.
TheStreet has compiled a list of five high-yielding consumer goods companies.
Vector Group (VGR - Get Report) is a publicly traded holding company with subsidiaries like tobacco company Liggett Group, New Valley (the former Western Union) and a plethora of investments and real estate holdings, including 20 Times Square in New York City. But it's the dividend that has investors of this Biscayne Bay, Fla.-based company seeing stars.
It offers a 7.66% yield at current prices, as shares have remained relatively stable over the past year, declining less than 3%.
Vector Group, which was named one of "America's 100 Most Trustworthy Companies" by Forbes, generated $1.2 billion in revenue over the past 12 months and $291.57 in EBITDA.
B&G Foods (BGS - Get Report) , which sells brands such as Pirate's Booty popcorn, Cream of Wheat, Ortega taco shells and more has seen its shares come under pressure over the past 12 months, down nearly 30%. Despite the drop, it still offers investors a healthy dividend.
At 5.4%, investors are getting more than twice the return on a 10-year U.S. Treasury, while also getting exposure to a company that's growing revenues. Quarterly revenue growth year-over-year tops 18% and the company generated $325.4 million in EBITDA over the past 12 months.
Ford Motor (F - Get Report) has undergone a massive change over the past year -- it has changed its CEO and continues to see companies like Waymo, Uber and Tesla (TSLA - Get Report) get more press and adoration.
Despite the 100-year old automaker's lack of adoration from investors, it still offers a rock-solid dividend at 5.3%.
Shares have fallen nearly 15% over the past year, but the company is still healthy, generating enormous amounts of cash, which should provide a buffer to the dividend.
Over the past twelve months, Ford's EBITDA was $13.31 billion on $152 billion in revenue.
Yielding roughly 5% at current prices, the Stamford, Conn.-based company has seen its shares fall 18% over the past year.
Over the past twelve months, Pitney Bowes has generated $3.4 billion in revenue and $747.15 million in EBITDA, though quarterly revenue has started to slide, with the company seeing a 0.9% loss over the past 12 months.
Like its Detroit brethren, General Motors (GM - Get Report) has too struggled to get positive publicity among the Tesla's, the Ubers and the Lyft's of the world. But the company isn't sitting on its laurels.
The Mary Barra-led company has its own ride-sharing unit, known as Maven and is competing with Tesla for mass market dominance in the electric vehicle space, with its Chevy Bolt.
Shares, which are up approximately 17% over the past year, also offer a 4.3% dividend yield, one that could be increased based on the company's financial strength.