What are we looking for? <\/p>\n
Makers and sellers of consumer products that offer sustainable dividends<\/a> regardless of any continuing pullback in discretionary spending. <\/p>\n The screen <\/p>\n Most defensive stocks are in the consumer sector, meaning they benefit from continuous, habitual use and the steady sales that come from it. That\u2019s especially true for those offering consumer staples \u2013 anything from soap and soup to paper towel and diapers.<\/p>\n Their wares help even out the ups and downs of the economic cycle for these companies. That includes during periods of lingering inflation and muted consumer spending on anything beyond the basics.<\/p>\n (Consumer stocks bring a level of stability to an investor\u2019s portfolio. Still, as our analysts at The Successful Investor<\/a> point out, it pays to diversify your holdings across all five economic sectors: manufacturing and industry, resources and commodities, consumer, finance and utilities. That means resisting the urge to tinker based on predictions about inflation, recession and so on. No one has ever consistently predicted either one, either in timing or degree.)<\/p>\n For this search, we started with an extensive list of dividend-paying stocks, before singling out providers of consumer staples well placed to add defensive characteristics to your portfolio. Our system awards points to a stock based on key factors: <\/p>\n two points if it has raised the payment in the past five years; one point for management\u2019s commitment to dividends; one point for operating in non-cyclical industries; one point for limited exposure to foreign currency rates and freedom from political interference; two points for a strong balance sheet, including manageable debt and adequate cash; two points for a long-term record of positive earnings and cash flow sufficient to cover dividend payments; one point for an industry leader; one point for five years of continuous dividend payments; two points for more than five. <\/p>\n Companies with 10 to 12 points have the most secure dividends, or the highest sustainability. Those with seven to nine points have above average sustainability; average sustainability, four to six points; and below average sustainability, one to three points.<\/p>\n More about TSI Network<\/p>\n TSI Network<\/a> is the online home of The Successful Investor Inc. \u2013 the group of widely followed Canadian investment newsletters by editor and publisher Pat McKeough. They include our award-winning flagship newsletter, The Successful Investor, and the TSI Dividend Advisor<\/a>.<\/a> TSI Network is also affiliated with Successful Investor Wealth Management.<\/p>\n What\u2019s ahead for the job market and household spending in 2026? Eight charts give us a glimpse<\/a><\/p>\n John Heinzl’s 2026 forecast: volatility, nerves and dividends<\/a><\/p>\n What we found<\/p>\n Our TSI Dividend Sustainability Rating System generated seven stocks: <\/p>\n Brampton, Ont.-based Loblaw Cos. Ltd. L-T<\/a>, with its Shoppers Drug Mart chain, plus Montreal\u2019s Metro Inc. MRU-T<\/a>, with its Jean Coutu pharmacies, continue to sell essential food, drugs and more to Canadians. <\/p>\n Chicago-based Conagra Brands Inc. CAG-N<\/a> makes a variety of popular foods, including Chef Boyardee canned pasta, Hunt\u2019s tomato sauce, Orville Redenbacher popcorn and Reddi-wip whipped cream. Mondelez International Inc. MDLZ-Q<\/a>, also headquartered in Chicago, is a world leader in chocolate, biscuits, gum, candy, coffee, powdered beverages and more. General Mills Inc. GIS-N<\/a>, based in Minnesota, has popular brands including Cheerios, Yoplait, Haagen-Dazs and Progresso. <\/p>\n New York-headquartered Colgate-Palmolive Co. CL-N<\/a> is a maker of toiletries and other household products. Its major brands include Ajax, Fab, Murphy, Palmolive cleansers; Colgate toothpaste; Irish Spring, Palmolive, Sanex and Softsoap soaps; Mennen shave cream; and Hill\u2019s pet food brands. <\/p>\n Based in Cincinnati, Ohio, Procter & Gamble Co. PG-N<\/a> is one of the world\u2019s largest makers of household and personal-care goods. Here, major brands include Tide laundry detergent, Pampers diapers, Gillette razors, Crest toothpaste and Vicks cold remedies.<\/p>\n<\/p>\n