BZ US stock analysis: Perfumes, wine, peanut butter and private schools are dividend aristocrats in a downturn

Analysts believe that consumer staples stocks have resilience during economic downturns, and many consumer products still maintain pricing power regardless of future market economic performance, allowing these industries to transfer tariff costs to consumers without significant resistance and continue to generate profits. Below are five consumer goods stocks that analysts believe can provide dividend income. Pure market observation, not any investment advice.

Interparfums

Many common perfume brands on the market are produced by Interparfums (Interparfums Inc. NASDAQ ticker: IPAR). Interparfums is headquartered in France and produces cologne and perfumes for brands like Donna Karan, Kate Spade, Coach, Guess, Montblanc, and Ferragamo. Interparfums reports sales of $1.45 billion over the past 12 months, with a current market capitalization of over $3.5 billion.

IPAR currently has a yield of 2.93%, with a dividend payout ratio (DPR) of 63%, meaning 63% of profits are distributed as dividends. Over 60% of profits are used for dividends, but consumer staples are not growth-oriented companies and typically return a significant portion of earnings to shareholders. IPAR recently raised its quarterly dividend from $0.75 to $0.80 per share and reported a 64% gross margin in its latest earnings report. These figures demonstrate strong dividend potential and the ability to absorb short-term tariff pressures. IPAR has a Benzinga Edge Quality score of 91.01 and announced Q1 2025 earnings on May 5.

J.M. Smucker

Uncrustables, a popular sandwich snack among children, comes from food giant J.M. Smucker (NYSE ticker: SJM), a company known for peanut butter and jelly, owning brands like Hostess, Folgers, Cafe Bustelo, Meow Mix, and Milk-Bone.

SJM currently has a yield of 3.72% and is a dividend aristocrat, having increased dividends for 27 consecutive years. SJM reported a 36% gross margin in its recent conference call.

United Breweries Co.

United Breweries Co. (NYSE ticker: CCU) is a wine and spirits manufacturer headquartered in Chile, known in South America as Compañía Cervecerias Unidas (hence the stock ticker CCU). The company primarily operates in South America, producing alcoholic and non-alcoholic beverages for its own brands and well-known brands like Heineken, Guinness, Pepsi, and Keurig. CCU does not need to worry about tariffs as it does not export products to the United States. However, U.S. investors can still benefit from its sustained dividends.

CCU's dividend yield is 3%, with a DPR of 28%, indicating flexible dividend payments. As a food and beverage manufacturer, the company has high-profit margins, with the latest earnings report showing a gross margin of 45%. Benzinga Edge rates the stock with a quality score of 99.42 and a value score of 92.45, the highest among all companies on this list. The daily chart looks attractive, with prices solidly above the 50-day and 200-day simple moving averages (SMA), and the relative strength index (RSI) remains well below the 70 overbought threshold.

Diageo plc ADR

British spirits giant Diageo (NYSE ticker: DEO) owns popular brands including Johnny Walker, Crown Royal, Don Julio, Ketel One, Bailey's, and Smirnoff. During the 2020 COVID-19 pandemic stock market crash, DEO performed best, rising from a low of $102 in March 2020 to $222 in the first week of 2022, but has since fallen back to 2020 levels. Analysts believe this could be a turning point for the struggling beverage manufacturer, with potential for a future rebound.

Diageo's stock has risen 7% in the past month, with fundamentals suggesting potential further increases. Diageo reported a gross margin of 60% in its recent earnings report, with a stock yield of 3.7% and a DPR of 46%. Analysts have rated the stock as a buy, with an average target price of $180, indicating significant upside potential.

Strategic Education Inc.

Strategic Education Inc. (NASDAQ ticker: STRA) operates private colleges and universities, including Strayer, Capella, and Torrens, and provides online higher education courses. Due to increased online education market share, STRA's stock price rose significantly during the pandemic but fell to multi-year lows in 2022 due to declining revenue and shrinking profit margins.

Strategic Education Inc. has a dividend yield of 2.94%, with a DPR of 51%, and the company has grown revenue for four consecutive quarters. Additionally, profit margins have recovered to over 9% for the first time since the pandemic began, with a gross margin of 47% and a price-to-earnings ratio of 17 times.