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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