BZ US Stock Analysis: Perfume, Liquor, Peanut Butter, and Private Schools as Dividend Aristocrats in Economic Downturns

Analysts Believe Consumer Stocks Show Resilience in Economic Downturn

Analysts believe that consumer-oriented stocks exhibit resilience during economic downturns. Regardless of future market performance, many consumer products maintain pricing power, enabling these industries to pass tariff costs onto consumers without encountering significant resistance, thus allowing for profitability. Below are five consumer goods stocks in the U.S. that analysts believe can generate dividend income. This is purely market observation and not an investment recommendation.

Interparfums

Many well-known perfume brands on the market are produced by Interparfums (Interparfums Inc. NASDAQ: IPAR). Headquartered in France, Interparfums manufactures colognes and perfumes for brands such as Donna Karan, Kate Spade, Coach, Guess, Montblanc, and Ferragamo. Interparfums reported sales of $1.45 billion over the past 12 months, with a current market capitalization exceeding $3.5 billion.

IPAR currently has a yield of 2.93%, with a dividend payout ratio (DPR) of 63%, indicating that 63% of profits are allocated to dividend payments. Over 60% of profits are returned to shareholders, though consumer staples are not typically growth-oriented companies and usually distribute a large portion of earnings. IPAR recently increased its quarterly dividend from $0.75 to $0.80 per share and announced a gross margin of 64% in its latest earnings report. These figures illustrate a strong dividend and the ability to absorb short-term tariff pressures. IPAR’s Benzinga Edge Quality score reaches 91.01, and it 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: SJM), which is known for its peanut butter and jelly products and owns renowned brands such as Hostess, Folgers, Cafe Bustelo, Meow Mix, and Milk-Bone.

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

United Breweries Co.

United Breweries Co. (NYSE: CCU) is a Chile-based wine and spirits manufacturer, 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 such as 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 enduring dividends.

CCU’s dividend yield is 3%, with a DPR of 28%, indicating flexibility in dividend payments. As a food and beverage manufacturer, the company also enjoys high profit margins, with the latest earnings report showing a gross margin of 45%. Benzinga Edge rates the stock’s quality at 99.42 and its value rating at 92.45, the highest rating among all companies on this list. The daily chart also looks strong, 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 beverage giant Diageo (Diageo NYSE: DEO) is home to popular brands including Johnny Walker, Crown Royal, Don Julio, Ketel One, Bailey’s, and Smirnoff. During the COVID-19 market crash in 2020, DEO stock performed exceptionally well, rising from a low of $102 in March 2020 to $222 in the first week of 2022, though the stock has since retraced to its 2020 low. Analysts believe this could be a turning point for the struggling beverage manufacturer, presenting potential for a rebound.

Diageo’s stock has risen 7% in the past month, with fundamentals suggesting further upside. The company reported a gross margin of 60% in its latest 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 substantial upside potential.

Strategic Education Inc.

Strategic Education Inc. (NASDAQ: STRA) operates private colleges and universities, including Strayer, Capella, and Torrens, offering online higher education courses. Due to the growing market share of online education, STRA shares surged during the pandemic, but due to declining revenues and shrinking profit margins, the stock fell to multi-year lows in 2022.

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

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