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Top Analysts Highlight 3 Defensive Stocks With Impressive Dividend Yields

MarketDash Editorial Team
1 hour ago
When markets get choppy, dividend-paying consumer staples stocks become investor favorites. Here's what Wall Street's most accurate analysts are saying about three high-yielding defensive plays in the sector, including their latest price targets and earnings updates.

When the market gets rocky, investors typically flock to stocks that pay reliable dividends. These companies usually generate strong free cash flow and return cash to shareholders through consistent payouts, making them attractive defensive plays during uncertain times.

The consumer staples sector is home to some of the most dependable dividend payers on Wall Street. These are the companies making products people buy regardless of economic conditions—toothpaste, snacks, soft drinks, and household essentials. Let's look at what Wall Street's most accurate analysts are saying about three high-yielding stocks in this space.

Procter & Gamble: Household Giant With 3% Yield

Procter & Gamble Co (PG) currently offers a dividend yield of 3.03%, making it an attractive option for income-focused investors seeking stability.

Olivia Tong from Raymond James maintained an Outperform rating on the stock in October, though she trimmed her price target from $185 to $175. This analyst has built an impressive 64% accuracy rate over time.

Meanwhile, Barclays analyst Lauren Lieberman took a more neutral stance, maintaining an Equal-Weight rating while cutting her price target from $164 to $153 on October 1. Lieberman's track record shows a 61% accuracy rate.

The company's recent earnings provided some positive news. On October 24, Procter & Gamble reported first-quarter adjusted earnings per share of $1.99, representing a 3% year-over-year increase and beating the analyst consensus estimate of $1.90. Not a massive beat, but solid execution in a challenging environment.

PepsiCo: Activist-Driven Changes and Nearly 4% Yield

PepsiCo Inc (PEP) offers the highest dividend yield among these three stocks at 3.93%, which is particularly attractive in today's rate environment.

Michael Lavery from Piper Sandler showed confidence in the beverage and snack giant, maintaining an Overweight rating and raising his price target from $161 to $172 on December 9. Lavery has demonstrated a 66% accuracy rate in his calls.

Barclays' Lauren Lieberman again took a more cautious approach, maintaining an Equal-Weight rating and lowering her price target from $144 to $140 on October 3.

The interesting story here isn't just the dividend—it's the operational shake-up. On December 8, PepsiCo announced a series of operational changes backed by activist investor Elliott Investment Management. The moves include a comprehensive supply chain review and a streamlined product lineup. Activist involvement often signals meaningful changes ahead, and investors are watching to see if these initiatives can reignite growth and improve margins.

Mondelez: Snack Food Player With 3.7% Yield

Mondelez International Inc (MDLZ), the company behind brands like Oreo and Cadbury, offers a 3.70% dividend yield.

Piper Sandler's Michael Lavery maintained a Neutral rating on the stock while making a modest price target adjustment from $63 to $62 on November 21. As mentioned earlier, this analyst carries a 63% accuracy rate.

JP Morgan analyst Ken Goldman showed more optimism, maintaining an Overweight rating while trimming his price target from $75 to $74 on October 17. Goldman boasts the highest accuracy rate among the analysts covered here at 73%, making his views particularly worth noting.

On October 28, Mondelez delivered a mixed bag of news. The company posted better-than-expected third-quarter earnings, which sounds great until you hear the second part: management lowered its full-year 2025 adjusted EPS guidance. The earnings beat shows the business is executing well in the near term, but the guidance cut suggests headwinds ahead—whether from input costs, foreign exchange pressures, or demand concerns.

Why These Stocks Matter Now

The appeal of these consumer staples stocks goes beyond just their dividend yields. They represent defensive positioning—companies that produce everyday products with pricing power and established market positions. When investors get nervous about economic growth or market volatility, these are the names that tend to hold up better than high-flying growth stocks.

The analyst ratings here tell an interesting story. You're seeing a mix of cautious optimism and neutral stances, with price target adjustments both up and down. That's actually fairly typical for mature, large-cap consumer staples companies. They're not expected to deliver explosive growth, but they're valued for consistency, cash generation, and shareholder returns.

For investors weighing these options, the key considerations are straightforward: dividend sustainability, valuation at current levels, and near-term catalysts like the PepsiCo operational review or Mondelez's path back to raising guidance. With yields ranging from 3% to nearly 4%, these stocks offer income that's hard to find elsewhere in the current market while providing exposure to stable, cash-generative businesses.

Back to News

Top Analysts Highlight 3 Defensive Stocks With Impressive Dividend Yields

MarketDash Editorial Team
1 hour ago
When markets get choppy, dividend-paying consumer staples stocks become investor favorites. Here's what Wall Street's most accurate analysts are saying about three high-yielding defensive plays in the sector, including their latest price targets and earnings updates.

When the market gets rocky, investors typically flock to stocks that pay reliable dividends. These companies usually generate strong free cash flow and return cash to shareholders through consistent payouts, making them attractive defensive plays during uncertain times.

The consumer staples sector is home to some of the most dependable dividend payers on Wall Street. These are the companies making products people buy regardless of economic conditions—toothpaste, snacks, soft drinks, and household essentials. Let's look at what Wall Street's most accurate analysts are saying about three high-yielding stocks in this space.

Procter & Gamble: Household Giant With 3% Yield

Procter & Gamble Co (PG) currently offers a dividend yield of 3.03%, making it an attractive option for income-focused investors seeking stability.

Olivia Tong from Raymond James maintained an Outperform rating on the stock in October, though she trimmed her price target from $185 to $175. This analyst has built an impressive 64% accuracy rate over time.

Meanwhile, Barclays analyst Lauren Lieberman took a more neutral stance, maintaining an Equal-Weight rating while cutting her price target from $164 to $153 on October 1. Lieberman's track record shows a 61% accuracy rate.

The company's recent earnings provided some positive news. On October 24, Procter & Gamble reported first-quarter adjusted earnings per share of $1.99, representing a 3% year-over-year increase and beating the analyst consensus estimate of $1.90. Not a massive beat, but solid execution in a challenging environment.

PepsiCo: Activist-Driven Changes and Nearly 4% Yield

PepsiCo Inc (PEP) offers the highest dividend yield among these three stocks at 3.93%, which is particularly attractive in today's rate environment.

Michael Lavery from Piper Sandler showed confidence in the beverage and snack giant, maintaining an Overweight rating and raising his price target from $161 to $172 on December 9. Lavery has demonstrated a 66% accuracy rate in his calls.

Barclays' Lauren Lieberman again took a more cautious approach, maintaining an Equal-Weight rating and lowering her price target from $144 to $140 on October 3.

The interesting story here isn't just the dividend—it's the operational shake-up. On December 8, PepsiCo announced a series of operational changes backed by activist investor Elliott Investment Management. The moves include a comprehensive supply chain review and a streamlined product lineup. Activist involvement often signals meaningful changes ahead, and investors are watching to see if these initiatives can reignite growth and improve margins.

Mondelez: Snack Food Player With 3.7% Yield

Mondelez International Inc (MDLZ), the company behind brands like Oreo and Cadbury, offers a 3.70% dividend yield.

Piper Sandler's Michael Lavery maintained a Neutral rating on the stock while making a modest price target adjustment from $63 to $62 on November 21. As mentioned earlier, this analyst carries a 63% accuracy rate.

JP Morgan analyst Ken Goldman showed more optimism, maintaining an Overweight rating while trimming his price target from $75 to $74 on October 17. Goldman boasts the highest accuracy rate among the analysts covered here at 73%, making his views particularly worth noting.

On October 28, Mondelez delivered a mixed bag of news. The company posted better-than-expected third-quarter earnings, which sounds great until you hear the second part: management lowered its full-year 2025 adjusted EPS guidance. The earnings beat shows the business is executing well in the near term, but the guidance cut suggests headwinds ahead—whether from input costs, foreign exchange pressures, or demand concerns.

Why These Stocks Matter Now

The appeal of these consumer staples stocks goes beyond just their dividend yields. They represent defensive positioning—companies that produce everyday products with pricing power and established market positions. When investors get nervous about economic growth or market volatility, these are the names that tend to hold up better than high-flying growth stocks.

The analyst ratings here tell an interesting story. You're seeing a mix of cautious optimism and neutral stances, with price target adjustments both up and down. That's actually fairly typical for mature, large-cap consumer staples companies. They're not expected to deliver explosive growth, but they're valued for consistency, cash generation, and shareholder returns.

For investors weighing these options, the key considerations are straightforward: dividend sustainability, valuation at current levels, and near-term catalysts like the PepsiCo operational review or Mondelez's path back to raising guidance. With yields ranging from 3% to nearly 4%, these stocks offer income that's hard to find elsewhere in the current market while providing exposure to stable, cash-generative businesses.