A stable source of income for investors.

There are few things that are certain on Wall Street, but one part of the market many investors have learned to rely on are consumer staples stocks. These companies make personal care products, foods or household goods that remain in strong demand in any environment. The stability of staples stocks offer a great way to reduce the risk profile of your portfolio. However, the consistent revenue also can fuel steady dividends for income-oriented investors who are looking for a reliable stream of cash from their holdings. Here are nine picks for investors interested in low-risk staples stocks with nice dividends.

Next:Coty (ticker: COTY) Credit

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Coty (ticker: COTY)

Though share prices are down from their 2015 peak, beauty giant Coty remains one of the safest bets on Wall Street thanks to its broad portfolio of makeup, skin care and hair products across several labels including well-known names like Cover Girl, Clairol, OPI and Philosophy. Growth has been difficult for the company amid fierce competition lately, but sales remain consistently solid as loyal consumers keep these products in strong demand. And despite top-line challenges, COTY stock remains incredibly profitable and its dividend is very sustainable at around 70% of next year's projected earnings.

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Current yield: 4.5%

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A stable source of income for investors.

There are few things that are certain on Wall Street, but one part of the market many investors have learned to rely on are consumer staples stocks. These companies make personal care products, foods or household goods that remain in strong demand in any environment. The stability of staples stocks offer a great way to reduce the risk profile of your portfolio. However, the consistent revenue also can fuel steady dividends for income-oriented investors who are looking for a reliable stream of cash from their holdings. Here are nine picks for investors interested in low-risk staples stocks with nice dividends.

Coty (ticker: COTY)

Though share prices are down from their 2015 peak, beauty giant Coty remains one of the safest bets on Wall Street thanks to its broad portfolio of makeup, skin care and hair products across several labels including well-known names like Cover Girl, Clairol, OPI and Philosophy. Growth has been difficult for the company amid fierce competition lately, but sales remain consistently solid as loyal consumers keep these products in strong demand. And despite top-line challenges, COTY stock remains incredibly profitable and its dividend is very sustainable at around 70% of next year's projected earnings.

Current yield: 4.5%

General Mills (GIS)

One of the most iconic staples brands on the planet, General Mills is behind go-to grocery favorites including Cheerios and Cinnamon Toast Crunch cereals, and Yoplait yogurt. These aren't glamorous brands with massive margins or big growth ahead of them, but they remain very popular with consumers and thus deliver the reliable revenue that low-risk income investors crave. Furthermore, these steady sales in good times and bad support a consistent and generous dividend. GIS just offered up its 15th consecutive dividend increase in April, and has paid some form of dividend for a staggering 120 straight years. That's income you can rely on in any economic environment.

Current yield: 3.7%

Ambev (ABEV)

While many U.S. investors haven't heard of Brazil-based Ambev, they have assuredly heard of the beers and soft drinks it's licensed to sell all across Latin America – Bud Light, Corona, Gatorade and Pepsi. It also produces local beverages such as coconut water and juices. The margins aren't great since ABEV has to pay a cut to the big companies behind these brands like PepsiCo (PEP). However, changing consumer tastes in Latin America and a growing middle class mean this stock is a targeted play on growth that doesn't show up in massive multinationals like Pepsi. Revenue is slowly rising, along with profits, and the dividend is more generous than Pepsi to boot.

Current yield: 4.6%

Flowers Foods (FLO)

While you may not know the baked goods brand of Flowers, you've assuredly seen the items that make up its portfolio. These include Nature's Own multigrain breads, Tastykake snacks and the iconic Wonder white bread. It also produces frozen and prepared breads for foodservice customers nationwide. Flowers may never set the world on fire with product innovation since its business is literally as old as sliced bread. However, even in the age of low carbohydrate diets, there is consistent demand for the products in its portfolio. Although FLO increased its dividend again this year, its payouts remain comfortably sustainable at around 70% of earnings.

Current yield: 3.2%

Hanesbrands (HBI)

Moving away from foods, Hanesbrands is a staple company that is best known for its Hanes undershirts, Playtex and Maidenform bras and Champion athletic wear. This is not a premium fashion company, nor is it a performance athletics brand like Nike (NKE). Instead, it's a reliable source of clothing that appears in wardrobes regardless of body type, age or income level. The business is as comfortably profitable as an old pair of sweatpants. Hanes pays out roughly a third of its profits via dividends and at a generous rate that is nearly double that of the typical dividend payer in the S&P 500.

Current yield: 3.7%

Philip Morris International (PM)

While the risks of smoking are well known, that doesn't mean that smoking is a thing of the past, and PM brands including Marlboro, Chesterfield and Parliament are among the most popular cigarettes on the planet. Furthermore, the company is researching smokeless alternatives that include electronic cigarettes and related accessories to cash in on the growing "vaping" trend as the desire for nicotine stays strong around the world. With lawsuits against big tobacco companies well in the past and the fundamentals of PM quite strong, shareholders have enjoyed steady revenue and slowly improving profits thanks to efficiencies and a generous stock buyback program to support its share price and earnings metrics.

Current yield: 5.3%

Campbell Soup Co. (CPB)

Soup is hardly the most interesting consumer item, but it's a common item on shopping lists. Whether you're looking for quick meal or using broth in a fancy recipe, chances are that one of Campbell's items will find a way into your cart at the grocery store. But dividend aristocrat CPB is more than that, with brands that include Cape Cod chips, Pepperidge Farm, Goldfish and Prego pasta sauce. Collectively, these foodstuffs make up quite a portfolio that makes revenue to the parent company incredibly consistent. That helps make the dividends – and dividend growth – consistent too, with 57 straight years where the payout by CPB has increased.

Current yield: 3.4%

J.M. Smucker Co. (SJM)

Once again, here’s a big food conglomerate that is more than just its headline brand of Smucker jams and jellies. There's Jif peanut butter, Folgers coffee and Pillsbury baked goods that fall under the broad SJM umbrella. That gives this family of foodstuffs a common place in cupboards around the U.S., as well as around the world. Smucker stock also enjoys a comfortable profit margin, which allows it to pay out a generous dividend while still only forking over about 40% of its total earnings. That means the payouts are sustainable and could be ripe for future growth, too.

Current yield: 3.1%

Kimberly-Clark Corp. (KMB)

Paper products giant Kimberly-Clark is the company behind Huggies diapers, Kleenex tissues, Cottonelle toilet paper and a host of other household and hygiene products. No matter what happens to the global economy, investors can be confident that households will not be cutting back on the purchase of these products. The stability of revenue at this consumer staples stock naturally lends itself to stability in dividends, too. At the end of 2018, KMB raised its dividend payments for the 46th consecutive year – and chances are very good that later this year, shareholders will see another bump in the company’s quarterly payout.

Current yield: 3%

Consumer stocks to buy for dividends:

Coty (COTY)General Mills (GIS)Ambev (ABEV)Flowers Foods (FLO)Hanesbrands (HBI)Philip Morris International (PM)Campbell Soup Co. (CPB)J.M. Smucker Co. (SJM)Kimberly-Clark Corp. (KMB)1 of 12

Jeff Reeves, Contributor

A veteran journalist with extensive capital markets experience, Jeff Reeves began writing for ...  Read more

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