Retirees Take Note: The Consumer Staples ETF Hiding Some of the Market’s Strongest Dividend Growers

Core Viewpoint - Consumer staples stocks are seen as reliable income generators, performing well during economic downturns, and often increasing dividends even in slow growth periods [2] Group 1: Consumer Staples ETF - The iShares Global Consumer Staples ETF (KXI) includes over 100 global consumer staples companies, with a 0.39% expense ratio and a 2.27% dividend yield [2] - The fund has returned 13.57% year-to-date and 18.07% over the past year as of February 24, 2026 [2] Group 2: Economic Indicators - The University of Michigan Consumer Sentiment index is at 56.4, indicating recessionary conditions, while the 10-year Treasury yield is at 4.03% [3] - Macro uncertainty is influencing investor strategies regarding equity exposure [3] Group 3: Company Highlights - Procter & Gamble (PG): - Has a strong dividend history with over 68 consecutive years of increases, currently paying $1.0568 per share, a 5.0% increase from 2024 [4] - Q2 FY2026 revenue was $22.20 billion, below the $22.95 billion estimate, with organic sales flat and operating income down 6.5% year-over-year [4] - FY2026 guidance projects EPS growth of only 1-6% [4] - Costco Wholesale (COST): - Reported Q1 FY2026 EPS of $4.50, exceeding the $4.36 estimate, with net sales up 8.2% and digitally-enabled sales up 20.5% [5] - Membership income grew by 14.0%, and the worldwide renewal rate was 89.7% [5] - The trailing P/E is 53x and forward P/E is 46x, with a modest dividend yield of 0.51% [6] - Philip Morris International (PM): - Generated $17 billion in smoke-free revenue in 2025, accounting for 41.5% of total revenue [7] - Walmart: - Represents 9.94% of KXI's portfolio, with Q4 revenue reaching $190.7 billion and eCommerce growing by 24% [7] - Coca-Cola: - Increased its dividend for the 63rd consecutive year, paying $8.78 billion in dividends during 2025 [7]