Consumer Staples Sector Bounces Back with Dividend Increases in 2025

After lagging behind the S&P 500 Index in 2023 and 2024, the consumer staples sector is making a strong comeback this year. As of the May 2 close, the S&P 500 Index recorded a total return of approximately -3% for 2025. In contrast, the Consumer Staples Select Sector SPDR Fund (NYSEARCA: XLP) posted a total return of about 4%. Currently, consumer staples rank as the second-best performing sector this year, following utilities.

This sector traditionally performs well during economic downturns primarily because companies often offer attractive dividend yields.

For instance, XLP boasts a dividend yield of roughly 2.6%, more than double the 1.2% yield of the S&P 500. Dividends offer a reliable source of returns, independent of market sentiment at any given moment. Therefore, amid volatile market conditions, dividends lend a sense of stability.

Below are three consumer staples stocks that have recently announced significant dividend increases, enhancing the stability they can offer. All return data and metrics reflect information as of the May 2 close unless noted otherwise.

Anheuser-Busch InBev (BUD) Delivers Impressive Dividend Boost

First on the list is Anheuser-Busch InBev SA/NV (NYSE: BUD). The Belgian brewing company is increasing its dividend by an impressive 20%. The next dividend, just under $1.05 per share, will be paid on June 6 to shareholders of record on May 7. This payment will also apply to holders of the company’s American Depository Receipts (ADRs).

Anheuser-Busch has a unique dividend policy, paying dividends only once per year. Thus, this is the sole opportunity for shareholders to benefit from the company’s payout in 2025. The stock now has a commendable dividend yield of about 1.6%, marking the fourth consecutive year the company has raised its dividend.

In addition, Anheuser-Busch has been active in share buybacks, utilizing nearly $1.4 billion to return capital to shareholders since November 13, 2024. Consequently, the company has reduced its outstanding share count by approximately 1.3%. With over $600 million remaining in buyback capacity, BUD shares have performed exceptionally well in 2025, appreciating around 32%. Following strong earnings results for Q4 2024, the stock climbed 10% in just two days. The next earnings report is scheduled for May 8.

Sysco (SYY) Maintains a Strong Dividend Record

Next is Sysco (NYSE: SYY), which is increasing its dividend by 6%. Although this increase is smaller than that of BUD, it still represents a notable enhancement. Sysco’s next quarterly dividend of $0.53 per share will be payable on July 25 to shareholders of record on July 3. The stock now carries an attractive dividend yield of 3%, benefiting from its solid track record of increases.

With this new dividend raise, Sysco is set to mark its 56th consecutive year of increasing dividends, solidifying its status as a Dividend King. Over the past 12 months, the company has also repurchased over $1.2 billion in shares, which is equivalent to more than 3.4% of its market capitalization a year ago. However, Sysco’s total return in 2025 has not been as strong, currently at -6%.

Unilever (UL) Delivers Substantial Dividend Growth

Finally, Unilever (NYSE: UL), the world’s second-largest company in the personal care products sector, is raising its quarterly dividend by over 11% to approximately $0.52 per share for ADR investors. This dividend will be paid on June 13 to shareholders of record on May 16. Unilever now has a significant dividend yield of nearly 3.3%, along with an active share buyback program valued at approximately $1.7 billion, which the company aims to complete by the first half of 2025.

Despite the relatively modest size of this buyback compared to its market capitalization exceeding $150 billion, Unilever has performed robustly in 2025, with a total return of around 13%.

Overall, it is encouraging to see that companies are prioritizing capital returns to shareholders even in uncertain economic times. The dividend yields from these firms can provide a consistent source of income. In general, the consumer staples sector serves as a reliable defense against market fluctuations.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.