Stocks from the consumer staples sector consistently providing dividends

In a time when the interest in artificial intelligence (AI) has led to the derating of the consumer staples sector against the broader market, three prominent companies within this sector stand out as offering attractive long-term opportunities: PepsiCo, Unilever, and Procter & Gamble.

PepsiCo (Nasdaq: PEP), a well-known name in the beverages and snacking industry, has a strong presence in the consumer staples sector. Known for its iconic brands such as Pepsi, Mountain Dew, Gatorade, and its snacking division, Frito-Lay, which includes Lay's and Doritos, PepsiCo is a Dividend Aristocrat, having increased its dividend every year for over 50 years. The most recent dividend increase will be reflected in the upcoming dividend payment scheduled for September 30, 2025, with an ex-dividend date of September 5, 2025. As of the article, PepsiCo yields over 3%.

PepsiCo's snacking division, Frito-Lay, generates close to half of Pepsi's overall earnings despite accounting for less than a third of the company's revenues. The company holds a market share of nearly 40% in the savory snack category. PepsiCo is also expanding its business beyond the US, where there is potential for growth due to the underpenetration of its brands and snacks.

Unilever (LSE: ULVR), a century-old company, is another Dividend Aristocrat with leading brands across personal care, home care, nutrition, and beauty. Unilever offers a dividend yield of just over 3% per annum. The company has a high exposure to faster-growing countries like India, with around 60% of its overall revenues coming from emerging markets. One of Unilever's growth drivers is its beauty division, Unilever Prestige, which has posted 13 consecutive quarters of volume growth.

Procter & Gamble (NYSE: PG), a consumer goods company founded in 1837, is another Dividend Aristocrat with a track record of over 100 years of paying dividends and increasing its payout every year for more than the past 60 years. P&G has a strong focus on innovation, driven by its high expenditure on research and development. Recent innovations include a version of Tide detergent in the form of a tile that uses microfibres, offering superior cleaning power and ease of use at lower wash temperatures.

In conclusion, despite the derating of the consumer staples sector, PepsiCo, Unilever, and Procter & Gamble stand out as companies with strong growth potential, robust dividend histories, and innovative strategies. For investors seeking long-term opportunities, these three companies are worth considering.