Top 3 Consumer Staples Dividend Stocks for Reliable Income in 2026

Source The Motley Fool

Key Points

  • Consumer staples makers provide necessities that people regularly buy.

  • Coca-Cola and Hormel are both Dividend King consumer staples makers, but they will interest different kinds of investors.

  • Federal Realty is the only Dividend King REIT, and most of its properties have a grocery component.

  • 10 stocks we like better than Coca-Cola ›

There is no way to predict the future, but in some cases, the past can be an important guide. Dividend Kings are a prime example, as a 50-year history of annual dividend increases clearly shows that income investors can likely rely on these stocks to keep paying dividends. Still, you need to do your homework, since even Dividend Kings sometimes cut their dividends.

If you are looking for reliable income stocks in 2026, consumer staple Dividend Kings Coca-Cola (NYSE: KO) and Hormel Foods (NYSE: HRL) should be on your short list. And so should real estate investment trust (REIT) Federal Realty (NYSE: FRT) for a similar reason. Here's a look at each one.

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Coca-Cola is doing well in a tough market

Consumers are worried about rising costs and are tightening their budgets. But beverage giant Coca-Cola is continuing to perform very well as a business. Notably, organic sales rose 5% in 2025 despite the industrywide headwinds. More fundamentally, the company competes well with any of its peers with regard to its brand, distribution, marketing, and product development strengths. There's a reason why Motley Fool research identifies Coca-Cola as one of the world's largest consumer staples companies.

A person and a child looking at a food box in a grocery store.

Image source: Getty Images.

The stock is rarely cheap, as you might expect. But right now the price-to-earnings ratio is slightly below its five-year average, suggesting that Coca-Cola is reasonably priced. Add in a well-above-market dividend yield of 2.6%, and even the most conservative investors may want to take a look at this Dividend King.

Hormel is in turnaround mode

At the other end of the spectrum is Hormel, which hasn't been hitting on all cylinders of late. The company's food focus on protein, however, is aligned well with consumer eating trends. With a recent CEO change, the company has been working on a turnaround. And the business is starting to show some progress, having strung together five quarters of organic sales growth. Granted, the increases have mostly been in the low single digits, but the consumer staples maker is moving in the right direction.

Despite the headwinds Hormel has faced in recent years, the company has continued to reward shareholders with dividend increases. The most recent dividend hike came at the end of 2025 and was a token 1%. That increased the annual streak to 60 years. The stock's dividend yield is a historically high 5%, which may attract more aggressive investors willing to step into a turnaround situation.

Federal Realty has a grocery focus

Consumer staples makers like Coca-Cola and Hormel are attractive because they basically make life necessities (beverages and food). Consumers continue to buy such products even during recessions and bear markets. Dividend King real estate investment trust Federal Realty benefits from this dynamic, too, since the vast majority of its strip malls and mixed-use assets include a grocery component.

Federal Realty is the only REIT that has achieved Dividend King status. Meanwhile, its 4.2% dividend yield will fit well in most income-focused portfolios. As a business, the company focuses on quality over quantity, with a relatively small portfolio of around 100 properties. And it is an active portfolio manager, regularly buying, selling, and redeveloping properties to ensure its assets are top-tier. It is a quality business that even the most conservative of investors could love.

Lean in to necessities for reliable income

If you are looking for stocks that can consistently pay dividends over the long term, you should focus on necessity-based businesses. Coca-Cola and Hormel make necessities. Federal Realty's properties house businesses that sell necessities. All are Dividend Kings, and all have above-market dividend yields. It is likely that one or more will find their way into your portfolio if you are looking for a reliable dividend stock in 2026.

Should you buy stock in Coca-Cola right now?

Before you buy stock in Coca-Cola, consider this:

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Reuben Gregg Brewer has positions in Federal Realty Investment Trust and Hormel Foods. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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