Yahoo Finance 4 Consumer-Related US Growth Stocks Paying Out Higher Dividends
The consumer sector has seen a strong rebound with the opening of global economies.
Investors who are looking for dependable names should look for companies with recognisable brand names, long track records, and consistent dividend payouts.
One good place to search for such stocks is in the US market which boasts a long list of consumer-related companies with global reach.
Not only are these companies posting healthy growth, but they are also declaring higher dividends, too.
Here are four such names that you can consider adding to your buy watchlist.
Tractor Supply Company (NASDAQ: TSCO)
Tractor Supply Company is the largest rural retailer in the US with 2,216 Tractor Supply stores located in 49 states.
The company hires around 50,000 staff and operates 198 Petsense pet stores in 23 states as of 30 December 2023.
The retailer posted a respectable set of earnings for 2023.
Revenue increased by 2.5% year on year to US$14.6 billion while operating profit improved by 3.1% year on year to US$1.5 billion.
Net profit inched up 1.7% year on year to US$1.1 billion.
Comparable store sales remained flat year on year with Tractor Supply opening 70 new Tractor Supply stores and 13 new Petsense stores in 2023.
The retailer increased its dividend by 12% year on year to US$4.12 per share for 2023.
Free cash flow generation remained healthy at US$580 million for the year, in line with the previous year’s US$583.6 million.
For 2024, Tractor Supply expects to open 80 stores and continue with its Project Fusion and garden centre transformations as well as complete its 10th distribution centre.
Comparable store sales are projected to come in between negative 1% to positive 1.5% for this year.
Kimberly-Clark (NYSE: KMB)
Kimberly-Clark is a consumer company selling baby, adult and body care products that distributes its products in more than 175 countries.
Some of its famous brands include Huggies, Kleenex, Scott, and Kotex.
For 2023, Kimberly-Clark delivered a stellar set of results.
Revenue edged up 1.3% year on year to US$20.4 billion.
Operating profit excluding an impairment loss increased by 12% year on year to US$3 billion.
Net profit excluding exceptional items jumped 25.2% year on year to US$2.4 billion.
The consumer giant also generated a positive free cash flow of US$2.8 billion for 2023, up nearly 50% year on year.
A quarterly dividend of US$1.22 was declared, 3.4% higher than the previous payout, representing Kimberly-Clark’s 52nd consecutive dividend increase.
For 2024, the company expects to deliver a low to mid-single-digit year on year increase in organic net sales.
Coca-Cola (NYSE: KO)
Coca-Cola is a global beverage company that sells its trademark cola drink in more than 200 countries.
It also owns a portfolio of soft drink brands such as Sprite and Fanta as well as water, sports, and coffee brands such as Dasani, Powerade, and Ayataka.
Coca-Cola reported healthy growth for 2023 with revenue increasing by 6% year on year to US$45.8 billion.
Operating profit increased by 4% year on year to US$11.3 billion with net profit rising by 12% year on year to US$10.7 billion.
The beverage behemoth also generated a positive free cash flow of US$9.7 billion for 2023, 2.2% higher than the US$9.5 billion churned out a year ago.
Coca-Cola has an even longer track record of dividend increases compared with Kimberly-Clark.
Its recent quarterly dividend was raised by around 5.4% year on year to US$0.485 and is its 62nd consecutive increase.
For its 2024 outlook, Coca-Cola expects organic growth of between 6% to 7% with its earnings per share growing by between 8% to 10%.
WD-40 (NASDAQ: WDFC)
WD-40 develops and sells products that solve problems in workshops, factories, and homes.
The company manufactures and distributes a range of maintenance, cleaning and home care products under brands such as Solvol, WD-40, and Spot Shot.
WD-40 demonstrated healthy growth for both its top and bottom lines for its fiscal 2024 first quarter ending 30 November 2023.
Sales improved by 12.4% year on year to US$140.4 million while operating profit climbed 29.5% year on year to US$24.2 million.
Net profit increased by 25% year on year to US$17.5 billion.
As for cash flow, the business generated a positive free cash flow of US$26.1 million which was nearly triple the US$9 billion that was generated in the prior period.
The consumer products company paid out a quarterly dividend of US$0.88, 6% higher than the US$0.83 that was paid a year ago.
The company has guided that sales growth for fiscal 2024 will be between 6% to 12%.
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Disclosure: Royston Yang owns shares of Tractor Supply Company.
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