Dividend Growth Investor: The Illusion of Choice in Consumer Goods

Investors have the ability to invest in any number of great brands. A brand tends to have buying power, in that they sell for slightly higher than a generic equivalent. And when inflation trends higher, these brands can raise their prices. That allows them to stay profitable in any environment.

Today, a dozen companies own over 550 of the world’s leading food and beverage brands. This limits total consumer choice, but it also creates a potential basket of great investments.

It’s no surprise that many of these companies tend to also be great long-term holdings. They offer steady growth combined with a history of dividend growth.

For instance, beverage and snack giant PepsiCo (PEP) has now increased its dividend for the past 51 years.

Plus, it has a 10-year dividend growth rate of 8.1%. With a current yield of 3%, investors can likely see further growth in that payout in the decades ahead.

Another consumer goods giant is Mondelez International (MDLZ). They’ve grown their dividend every year since they were spun off 12 years ago.

Shares pay a lower 2.5% yield. But the growth story is far better, with an 11.3% increase on average over the past 10 years.

With a dozen names to choose from, most of these companies pay dividends above the market average. But even better, they grow them at a faster rate.

To view the full list of consumer brand giants, click here.