5 Long-term discretionary consumer dividend stocks


Building a dividend portfolio? You’ll want to make consumer discretionary dividend stocks a cornerstone of your holdings. Why? Because this sector is home to some of the strongest and most prolific state-owned enterprises. Plus, they offer some of the best dividend prospects. Dividend payers in this industry are the definition of “blue chip” investments and will be lifelong additions to your portfolio, regardless of the state of the economy.

Before getting into the five strongest consumer discretionary dividend stocks on the market, it’s important to explain Why these are such strong recommendations. Several of them are dividend aristocrats. They have increased or maintained their dividend for at least 25 consecutive years! The other two on this list have paid healthy dividends for over a decade.

These recommendations aren’t just solid companies – they’re the safest and strongest paying dividends. Each of them deserves special attention in your long-term, forward-looking dividend portfolio.

Best consumer discretionary dividend stocks

1. Johnson & Johnson (NYSE: JNJ)

Dividend yield: 3.2%

It’s hard to compete with Johnson & Johnson when the conversation turns to dividends. Although it is technically listed as a healthcare company, its roots are in fact the consumer discretionary sector. Today, it still produces a substantial line of consumer products that make it more than applicable to a portfolio focused on discretionary consumers. With everyday brands like Tylenol and Neutrogena under its belt, alongside Splenda, Listerine and dozens of others, Johnson & Johnson is in almost every American home.

JNJ not only pays a healthy dividend, it has been paying it for over 55 consecutive years! If you are looking for long-term stability in your dividend portfolio, this action is a definite addition. More importantly, its prospects for the coming years are bright thanks to its involvement in the COVID-19 vaccine, its investments in skin care products and its incredible track record.

2. McDonalds (NYSE: MCD)

Dividend yield: 3.1%

McDonalds is one of the few dividend-paying stocks that many experts consider “recession-resistant.” History has shown us that no matter what the tough times, people will always have a few dollars in their pockets for a burger. This is why McDonalds has been able to pay dividends consecutively for over 40 years. That’s the definition of a consumer discretionary stock – and lucrative, too!

McDonalds is not only a high performing stock, it is also a protection against national economic turmoil. McDonalds has sites in more than 100 countries, which makes it perhaps the most diverse company in the world. Today, it is also helped by the rise in fast food delivery trends, as well as its diverse menu. Burgers, chicken, salads, coffee, and more are all high-margin products that people can’t get enough of. Your wallet won’t be able to get enough of it either!

3. Home Depot (NYSE: HD)

Dividend yield: 3.2%

Home Depot faces very few large-scale competitors outside of Lowes (NYSE: LOW). This moat has made it the destination of choice for everyone, from carpenters and electricians to gardeners and painters. And although it holds a significant inventory, the company is at the forefront of omnichannel inventory management. He is able to maintain a strong physical presence, while providing smooth in-store and customer delivery experiences. HD wins because it follows long term trends.

Home Depot benefits from aging housing stock in the United States, as well as inflated house values. Fewer homes built each year means more maintenance and renovations for the aging inventory. Contractors and DIY enthusiasts alike are heading to their local Home Depot for tools, supplies, and resources. Home Depot may not be a dividend aristocrat, but it is on the right track. It deserves significant consideration for a defensive dividend-focused consumer discretionary portfolio.

4. PepsiCo (NASDAQ: PEP)

Dividend yield: 3.3%

If you think PepsiCo is just a soft drink brand, guess again. This dividend aristocrat has paid a dividend for nearly 50 consecutive years because of his adaptability. Today it owns dozens of subsidiary brands including Lays, Gatorade, Tostitos and more. PepsiCo dominates several aisles in the grocery store, making it the epitome of a consumer discretionary brand. That said, it keeps prices low and a constant stream of innovation, encouraging customers to make this stock a winner year after year.

Although consumers are moving sharply away from sugary treats and carbonated drinks, PepsiCo is already ahead of the curve. The company’s investments in healthy foods and new formulations have kept it performing well even in the face of headwinds. PepsiCo and its juggernaut compatriot Coca-Cola Co. (NYSE: KO) are both safe long-term dividend stocks representing consumer staples.

5. Nike (NYSE: NKE)

Dividend yield: 1.4%

Few brands compete with Nike in the world of consumer discretionary business, and none come close in apparel. Nike’s presence is global, which means it welcomes revenue from all over the world. It is synonymous with athletics and athletic fashion, and has brand ambassadors in all of the major sports around the world. This main brand strength has helped the company in both bearish and bullish markets, to make it a stable long-term investment.

Surprising for a company of its size, Nike actually has room to run (pun intended). China is a major growth market, and Nike is already seeing major traction. The company has also grown in adjacent apparel markets, including tech and healthcare, with strong partnerships that could propel it for another decade. It’s a long-term catch that will continue to pay dividends.

The long-term benefit of discretionary consumer dividends

Dividends are a great way to create passive income to prepare for retirement. And Wealthy Retirement’s Marc Lichtenfeld provides daily updates on stocks and the dividend breakdown to help you retire on your own terms. Therefore, register for the Rich retirement e-letter below.

Consumer discretionary dividend stocks are among the largest contributors of dividends in all sectors. Whether you’re building a dividend portfolio or diversifying into the industry, one of the five companies above deserves a place. While there is no sure thing about investing, these companies are about as close as they get. You’ll love their long-term outlook for your portfolio.




About Catherine Wilson

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