Industry Overview - Consumer staples underperformed in 2025, with the S&P 500 Consumer Staples index gaining about 3%, while the overall S&P 500 rose more than 16% [1] - The underperformance was attributed to investor focus shifting towards AI-driven growth stocks, leaving defensive names behind, alongside changing consumer behavior and concerns regarding GLP-1 weight-loss drugs affecting demand for certain foods and beverages [2] Future Outlook - The outlook for the consumer staples sector appears more favorable moving forward, with expectations of benefiting from lower interest rates and easing headwinds [3] - The One Big Beautiful Bill Act, passed in July, is anticipated to increase incomes for middle-income consumers, potentially supporting discretionary spending [3] Sector Challenges - Specific challenges in the sector, such as the pullback in alcohol consumption and the pace of GLP-1 adoption, seem to be stabilizing, reducing risks for alcohol-exposed businesses and easing pressure on parts of the food and beverage space [4] Investment Opportunities - A steadier environment for consumer staples is expected in 2026, with fewer disruptive forces and a more stable consumer spending backdrop, prompting a review of the best consumer staples dividend stocks to invest in [5] Company Highlights - **The Clorox Company (NYSE:CLX)**: - Number of hedge fund holders: 37 - Dividend yield as of January 7: 4.87% - Reported adjusted earnings of $0.85 per share, beating estimates of $0.79, despite a 19% revenue drop to $1.43 billion [9][11][12] - Maintained full-year outlook with expected sales decline of 6% to 10% and adjusted earnings projected at $5.95 to $6.30 per share [13] - **Kimberly-Clark Corporation (NASDAQ:KMB)**: - Number of hedge fund holders: 42 - Dividend yield as of January 7: 5.17% - Stock dropped over 22% in 2025 due to challenges in core categories, particularly in the diaper business [15][16] - Planned acquisition of Kenvue for $48.7 billion may reshape the business mix and improve income profile [17] - **Church & Dwight Co., Inc. (NYSE:CHD)**: - Number of hedge fund holders: 44 - Dividend yield as of January 7: 1.41% - Completed a strategic review and announced the sale of its vitamins, minerals, and supplements business, which is expected to have a limited impact on overall business [19][20][21]

Group 1 - Church & Dwight Co., Inc. (NYSE:CHD) is recognized as one of the 14 Best Dividend Aristocrats to invest in heading into 2026 [1] - Citi upgraded Church & Dwight from Sell to Neutral, raising its price target from $85 to $87, citing improved sales outlook for 2026 as year-over-year comparisons become easier [2] - The company completed a strategic review of its vitamins, minerals, and supplements business, announcing the sale of the VitaFusion and L'il Critters brands to Piping Rock Health Products [3] Group 2 - The sale includes the brands, related trademarks and licenses, and manufacturing and distribution facilities in Vancouver and Ridgefield, Washington, with closing expected before year-end, subject to standard conditions [4] - The VMS brands account for less than 5% of expected 2025 net sales, and Church & Dwight anticipates a one-time, after-tax charge of $40 million to $45 million in Q4 2025 [4] - Founded in 1846, Church & Dwight is the leading US producer of sodium bicarbonate and offers a diverse range of personal care, household, and specialty products under well-known brand names [5]

Core Points - Church & Dwight Co., Inc. will webcast a discussion of its third quarter earnings results on October 31, 2025, at 10:00 a.m. ET [1] - The live audio webcast will be accessible to media and investors, with a replay option available [1] - Church & Dwight Co., Inc. is the leading U.S. producer of sodium bicarbonate, commonly known as baking soda, and has been in operation since 1846 [1]