Consumer Staples Stocks Shine Amid Market Volatility: 3 Stocks with Dividend Hikes

Consumer staples stocks are outperforming the S&P 500 Index in 2025, driven by high dividend yields. Three stocks - Anheuser-Busch InBev SA/NV (BUD), Sysco (SYY), and PepsiCo (PEP) - recently announced significant increases to their dividends, providing stability and return for investors. BUD is upping its dividend by 20% and now has a 1.6% dividend yield, while SYY raised its dividend by 6% and now has a 3% yield. PEP raised its dividend by 6.6% and now has a 2.9% yield.

Consumer staples stocks have been outperforming the S&P 500 Index in 2025, driven by high dividend yields. Three notable companies—Anheuser-Busch InBev SA/NV (BUD), Sysco (SYY), and PepsiCo (PEP)—have recently announced significant increases to their dividends, providing stability and return for investors.

Anheuser-Busch InBev (BUD) increased its dividend by 20%, bringing its yield to 1.6%. Sysco (SYY) raised its dividend by 6%, resulting in a 3% yield. PepsiCo (PEP) boosted its dividend by 6.6%, achieving a 2.9% yield [1].

These dividend increases come as consumer staples stocks continue to attract investors seeking steady, predictable cash flows. The sector's mature, established businesses offer a hedge against market volatility and provide a consistent source of income. The high yields from these stocks have been particularly appealing to passive income investors, who are seeking diversification in their portfolios.

Philip Morris International (PM) was also highlighted as a top consumer staples stock by Morgan Stanley, with analyst Dara Mohsenian noting its strong long-term growth profile and defensive portfolio. The tobacco giant's smoke-free business accounted for 42% of total net revenue in Q1 2025, with significant growth in shipment volumes and net revenues [2].

Verizon Communications (VZ), Enterprise Products Partners (EPD), and Rio Tinto (RIO) are among the high-yield dividend stocks that passive income investors may like. Verizon offers a 6.8% dividend yield, Enterprise Products Partners provides a 6.7% yield, and Rio Tinto delivers a 6.04% yield [3].

These dividend-paying companies typically belong to various sectors like utilities, real estate, telecommunications, and consumer staples, offering diversification to a growth-heavy portfolio. The combination of income and growth potential makes these stocks attractive choices for conservative investors.

In conclusion, the consumer staples sector's high dividend yields have driven investor interest and outperformed the S&P 500 Index in 2025. Companies like Anheuser-Busch InBev, Sysco, and PepsiCo have provided stability and return for investors through significant dividend increases. As passive income investors seek diversification, high-yield dividend stocks in this sector continue to be a popular choice.

References:
[1] https://www.marketwatch.com/story/murphy-usa-raises-dividend-2-for-second-increase-this-year-a3f98b1c
[2] https://seekingalpha.com/news/4442317-philip-morris-is-named-a-top-consumer-staples-stock-by-morgan-stanley
[3] https://www.tradingview.com/news/barchart:6553ca417094b:0-3-high-yield-dividend-stocks-to-buy-in-2025-for-passive-income/