Don't Give Up on Dividend Stocks. 5 Dividend Kings Down Between 5% and 33% to Buy in November

A 4% dividend yield isn't much when the S&P 500 is on track to gain over 15% for the third consecutive year. But generating a stable and growing stream of passive income can be an excellent way to supplement retirement income or achieve a financial planning goal without relying on rising stock prices.

Yet, dividends are only as reliable as the companies paying them. So companies that combine an extensive track record of dividend growth with a high yield are elite choices for income investors.

There are only 56 or so Dividend Kings -- which are companies that have boosted their payouts for at least 50 consecutive years. Here are five Dividend Kings that are down 5% to 33% year to date to buy in November.

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The consumer staples sector is getting crushed

Dividend Kings PepsiCo (NASDAQ: PEP), Procter & Gamble (NYSE: PG), Colgate-Palmolive (NYSE: CL), Kimberly-Clark (NASDAQ: KMB), and Target (NYSE: TGT) have gradually expanded over the decades, growing their earnings and, in turn, the amount they directly pay shareholders through cash dividends.

However, all five of these Dividend Kings are down big in 2025. In fact, consumer staples is the worst-performing sector year to date. Consumers have been hit hard by rising costs of living, inflationary pressures, mounting credit card debt, relatively high interest rates, and now a weakening job market.

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These factors have reduced foot traffic at Target and impacted demand for Pepsi's snacks (under the Lay's and Quaker Oats brands) and nonalcoholic beverages, as well as household and personal products owned by P&G, Colgate, and Kimberly-Clark.

But there's good reason to think better times may lay ahead for each of the companies.

Navigating the slowdown

PepsiCo

To overcome this period of sluggish growth, Pepsi is working on a portfolio transformation and cost reductions to improve its operations, especially in its supply chain, and responding to increased interest in wellness and healthy snacks. Many of Pepsi's recent acquisitions don't overlap with its existing salty snacks and soda brands.

Over the past year, Pepsi acquired full ownership of the companies that make Sabra and Obela products (emphasis on Mediterranean-inspired dips and spreads), Siete Foods (Mexican-American food products such as sauces, seasonings, and snacks), and prebiotic and juice brand Poppi -- which is perhaps the biggest portfolio diversification for Pepsi in years.

These moves should help Pepsi adapt to changing consumer preferences without damaging its existing brands.

Procter & Gamble

P&G continues to exhibit impeccable pricing power and is forecasting modest earnings growth. The company's international exposure and leading brands across several key categories allow the company to offset weakness in one segment with growth in another.

Right now, its overall skin care business and multiple product categories in Greater China and Latin America are producing solid results, which is helping offset a slowdown in North America.

Colgate-Palmolive

Unlike P&G, which is well-diversified across several consumer categories, Colgate is mainly an oral and home care products company. The Colgate brand is a global leader in toothpaste and toothbrushes.

The brand is immensely valuable, as Colgate is known for its ultra-high operating margin and return on invested capital. Colgate also owns Hill's Pet Nutrition, which is arguably its second-most-valuable brand, behind Colgate. The segment is high-margin and accounted for a whopping 22.6% of Colgate's net sales for the nine months ended Sept. 30.

In this vein, Colgate is one of the most reliable consumer staples companies because its portfolio is built around a few leading brands.

Kimberly-Clark

Kimberly-Clark has gotten hammered as of late, with the stock now hovering around a 10-year low.

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Investors reacted negatively to the company's $48.7 billion deal to acquire Kenvue. The acquisition comes just a little over two years after Kenvue completed its separation from Johnson & Johnson -- forming an independent company focusing on consumer health through leading brands like Band-Aid, Johnson's, Listerine, Neutrogena, Aveeno, and Tylenol.

Part of the negative reaction may be due to claims linking Tylenol usage and autism, as well as cancer claims linked to its baby powder products. Additionally, Kimberly-Clark is a paper products company that produces toilet paper, paper towels, tissues, diapers, adult care, and feminine care products, which is completely different from Kenvue's product portfolio.

With so much going wrong, it's easy to lose sight of the company's strengths. Kimberly-Clark owns Huggies, which is right up there with P&G-owned Pampers as the leading brands in the diaper category. Its Kleenex brand is the leading facial tissue in the world. Scott is a top paper towel and toilet paper brand, and Cottonelle is a leading toilet paper brand.

Kenvue also has many category-leading brands. And a key similarity between Kimberly Clark and Kenvue is that demand for many of their categories tends to hold up well, even during a recession, making Kimberly Clark a highly intriguing value stock for patient investors to consider.

Target

Target can't compete on value with Walmart, Costco Wholesale, or Amazon. Or on grocery prices. Its slight premium across product categories is leading to pressure on sales and margins.

However, Target is turning its business around by playing to its strengths -- such as improving the in-store experience, exclusive partnerships, and e-commerce. Even with declining growth, Target still generates substantially more free cash flow and earnings than is needed to pay its dividend.

These Dividend Kings are dirt cheap

The sell-off across these consumer staples names has pushed their yields up above historic averages and their valuations down -- offering a compelling cost basis for long-term investors.

PEP PE Ratio (Forward) data by YCharts

As you can see in the chart, Pepsi, P&G, and Colgate, in particular, tend to command premium valuations due to their high-quality portfolios. But all three of those stocks fetch highly attractive valuations based on forward earnings projections.

Kimberly-Clark trades at the steepest discount to its historical average, but that valuation should be taken with a grain of salt considering earnings will change dramatically once the acquisition of Kenvue goes through.

Five regal ways to boost your passive income stream

With valuations of many top stocks elevated, investors may want to consider adding shares of quality companies priced for what they are already earning rather than what they could earn years down the line.

Investors looking for high-margin cash cows may want to focus mainly on P&G and Colgate-Palmolive. Pepsi and Target are compelling turnaround plays, and Kimberly-Clark is arguably the best deep value stock of the bunch.

Daniel Foelber has positions in Kenvue, Kimberly Clark, Procter & Gamble, and Target and has the following options: short December 2025 $100 calls on Target. The Motley Fool has positions in and recommends Amazon, Colgate-Palmolive, Costco Wholesale, Kenvue, Target, and Walmart. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2026 $13 calls on Kenvue. The Motley Fool has a disclosure policy.