Key Points
- With chaos damaging markets lately, the consumer staples sector has provided a much-needed safe haven.
- These consumer staples giants are increasing their dividends by 5% to 20%, demonstrating their commitment to returning capital.
- Two of these names are absolutely crushing the broader market in 2025 with their stellar performance.
After greatly underperforming the S&P 500 Index in 2023 and 2024, the consumer staples sector is punching back this year. As of the May 2 close, the S&P 500 Index had provided a total return of approximately -3% in 2025. Conversely, the Consumer Staples Select Sector SPDR Fund (NYSEARCA: XLP) has a total return of around 4%. At this point, consumer staples are the second-best performing sector of the year, only behind utilities.
Consumer staples stocks often do well in tough times. This is partly because these companies usually offer high dividend yields.
For example, XLP has a dividend yield of around 2.6%, over twice the 1.2% yield of the S&P 500. Dividends represent a consistent source of return that is not dependent on market sentiment at any one point in time. Thus, at a time when markets have swung back and forth wildly, dividends provide a welcome well of stability.
Below are three consumer staples stocks that recently announced significant increases to their dividends, helping increase the level of stability they can offer. All return data and other metrics use information as of the May 2 close unless otherwise indicated.
Investors Raise Their Glasses on BUD’s 2025 Performance & Dividend Boost
First up is Anheuser-Busch InBev SA/NV (NYSE: BUD). The Belgian company is upping its dividend by a massive 20%. The company’s next dividend of just under $1.05 per share will be payable on June 6 to shareholders of record on May 7. This payment date applies to the company’s American Depository Receipt (ADR) holders.
Notably, Anheuser-Busch only pays dividends once per year, making this the only occasion to participate in the company’s payout in 2025. The stock now has a solid dividend yield of around 1.6%, which represents the fourth year in a row that the company has boosted its dividend.
Anheuser-Busch has also been using share buybacks extensively to return capital to shareholders in recent months. Since Nov. 13, 2024, the company has reported share repurchase spending equal to nearly $1.4 billion. This has led to the firm reducing its outstanding share count by almost 1.3%.
It still has over $600 million in buyback capacity remaining. Lastly, BUD stock has performed spectacularly in 2025, up around 32%. The company crushed its earnings expectations for Q4 2024, sending shares up 10% in the two days after. The company reports again on May 8.
SYY: Dividend King's Yield Hits 3%
Next up is Sysco (NYSE: SYY). The company is raising its dividend by 6%. This is decidedly less impressive than BUD, but still represents a notable increase. The next quarterly $0.53 per share dividend is payable on July 25 to shareholders of record on July 3. Two areas where this dividend stock has an advantage over BUD are its overall yield and track record of increases. The stock now has an indicated dividend yield of 3%.
Additionally, with this dividend increase, the company’s fiscal year 2026 is now expected to be the 56th year in which it has raised dividends.
The Dividend King has also bought back a large number of its shares over the last 12 months. Its spending is over $1.2 billion, equal to over 3.4% of its market cap a year ago. Unfortunately, Sysco's total return in 2025 hasn’t been as impressive, at -6%.
UL: Solid Dividend Growth and Performance in 2025
Last up is Unilever (NYSE: UL), the world’s second-largest stock in the personal care products industry. The company is raising its quarterly dividend by over 11% to approximately $0.52 per share for investors in its ADR. This dividend will be payable next on June 13 to shareholders of record on May 16. Now, the stock has a very sizable indicated dividend yield of nearly 3.3%. The company also has a buyback program that it is quickly working to execute.
It is worth approximately $1.7 billion, and the company claims it will complete the project within the first half of 2025. However, that program is relatively small compared to the company’s over $150 billion market capitalization. Unilever has performed very well in 2025, with a total return of around 13%.
Overall, it's good to see that companies continue to prioritize returning capital to shareholders even in uncertain times. These companies' dividend yields can help provide a repeatable source of return. In general, the consumer staples sector offers a sturdy shield against market fluctuations.
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Companies Mentioned in This Article:| Company | Current Price | Price Change | Dividend Yield | P/E Ratio | Consensus Rating | Consensus Price Target |
|---|
| Unilever (UL) | $61.17 | -1.5% | 3.37% | 17.53 | Moderate Buy | $70.67 |
| Anheuser-Busch InBev SA/NV (BUD) | $71.18 | +0.3% | 1.19% | 20.63 | Buy | $71.50 |
| Sysco (SYY) | $74.71 | +1.0% | 2.73% | 19.35 | Moderate Buy | $83.00 |
About Leo Miller
Experience
Leo Miller has been a contributing writer for DividendStocks.com since 2024.
- Professional Background: Leo Miller is a financial writer with a background in investment research and market analysis. He has held roles as an investment research associate at Laird Norton Wetherby and as a research analyst at Sungarden Investment Publishing, where he gained hands-on experience evaluating equities and portfolio strategies.
- Credentials: He holds a Bachelor of Business Administration in Finance from the University of Washington’s Foster School of Business, a top-ranked public business school. He has passed the CFA Level II exam.
- Finance Experience: Leo began researching and investing in gold mining stocks in 2019 and started writing about finance and investing in 2021. He joined DividendStocks.com as a contributing writer in 2024, where he covers both stocks and ETFs. A strong research foundation and direct exposure to financial markets shape his perspectives.
- Writing Focus: He specializes in tech stocks, dividend-paying companies, ETFs, and value-oriented opportunities. His work emphasizes clarity, actionable insights, and education for investors at all levels.
- Investment Approach: Leo follows a disciplined, long-term investing strategy rooted in fundamental analysis, with a strong focus on economics, sector and industry research, and passive investing principles.
- Inspiration: Leo finds the stock market endlessly compelling and enjoys the challenge of separating meaningful data from noise. He’s passionate about analyzing what makes businesses stand out—and sharing those insights to guide informed investment decisions. As he puts it, “Performing strong analysis requires separating the wheat from the chaff.”
- Fun Fact: Leo credits his grandfather for sparking his interest in investing and is a lifelong animal lover.
- Areas of Expertise: Fundamental analysis, economics, industry and sector analysis
Education
Bachelor in Business Administration, Finance, Foster School of Business at University of Washington