KXI Is Anchored by Dividend Kings That Quietly Returned 18% This Year

Core Viewpoint - The KXI ETF, which focuses on consumer staples, has delivered an 18.1% total return over the past year, supported by strong dividend growth from its underlying holdings, particularly from Dividend Kings and Aristocrats [1]. Group 1: Performance and Yield - KXI has a dividend yield of 2.27% and has returned 18.1% over the past year, with a year-to-date increase of 13.6% as of February 24, 2026 [1]. - The ETF's income primarily comes from companies with a long history of dividend growth, providing a solid income foundation for investors [1]. Group 2: Key Holdings - Walmart and Costco make up nearly 19% of KXI's portfolio but contribute minimal income, with yields of approximately 0.8% and under 1% respectively [1]. - Philip Morris International has a 3.1% yield and raised its dividend by 8.9% in 2025, with smoke-free products generating 41.5% of its revenue [1]. - Coca-Cola has a 2.6% yield and a 67% payout ratio, with a projected free cash flow of about $12.2 billion for 2026, supporting its dividend [1]. - Procter & Gamble has over 60 consecutive years of dividend increases and a 61.7% earnings payout ratio, indicating room for continued growth [1]. - PepsiCo has raised its dividend for over 50 years, recently increasing it by 5.0% to an annualized $5.69, although it carries significant debt that could impact future growth [1]. Group 3: Investment Considerations - The total return profile of KXI, combining the 2.27% yield with the 18.1% price return, offers a more attractive investment case than the yield alone suggests [1]. - Global diversification within KXI helps mitigate concentration risk in any single economy, although it may introduce some foreign exchange drag [1].