2 Consumer Dividend Stocks to Buy for High-Yield Dividend Growth
The Motley Fool
by newsfeedback@fool.com (Reuben Gregg Brewer)February 26, 2026
AI-Generated Deep Dive Summary
Dividend growth is just as crucial as dividend yield for investors seeking long-term income. While high yields attract attention, they may not hold their value over time if dividends don’t grow. This article highlights two top consumer dividend stocks—PepsiCo (PEP) and Realty Income (O)—that offer a strong mix of high yield and proven growth potential.
PepsiCo has consistently increased its dividends for decades, earning it a place in the S&P 500 Dividend Aristocrats. With a diverse portfolio of essential products like snacks, beverages, and household goods, PepsiCo benefits from steady demand across economic cycles. Its strong financial performance and commitment to dividend growth make it a reliable choice for income investors.
Realty Income (O), known as the “REIT King,” has a long history of delivering consistent dividend increases since 1969. As a real estate investment trust, Realty Income owns and manages a large portfolio of single-tenant retail properties, generating stable cash flow. Its focus on acquiring high-quality assets and maintaining strong tenant relationships ensures steady income for shareholders.
For readers interested in finance and investing, this article emphasizes the importance of balancing yield and growth when building a dividend portfolio. By focusing on companies with track records of consistent dividend increases, investors can secure a sustainable income stream that adapts to inflation and market changes. These two stocks exemplify how diversification across sectors like consumer goods and real estate can provide both stability and growth opportunities for long-term financial goals.
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Originally published on The Motley Fool on 2/26/2026