Unilever looks like a high-quality but not cheap defensive business with stable revenue and decent profitability. Revenue, operating profit, and net profit remain substantial and generally support the investment case, while operating margin and net margin are above industry benchmarks, indicating the company’s ability to maintain pricing discipline and cost efficiency. At the same time, the valuation based on sales and especially on free cash flow looks high relative to the sector, so the market is already pricing in a significant portion of the business’s stability and quality. The lack of P/E and P/B data makes it impossible to confirm or refute overvaluation based on classic multiples, but the available P/S and P/FCF ratios alone point to a premium versus the industry. Liquidity is weaker than a comfortable level: the current and quick ratios are below one and below the median, which for an investor means limited working capital cushion. Leverage looks moderate, and the debt/equity ratio is formally low, which helps mitigate balance sheet risk. Equity and net assets are substantial, but equity dynamics over the last period were rather restrained, and assets do not show any clear acceleration in growth. Dividend yield remains attractive and is gradually increasing, which supports the stock’s overall income profile. The weak point is the lack of a clear improvement in several capital efficiency metrics, where some measures are either not disclosed or look neutral, so the potential for re-rating is limited. Overall, this is more a story about stability and defensive qualities than about significant upside. For a target valuation, this implies a moderately cautious view: the fundamentals are solid, but premium multiples and weak liquidity do not justify an aggressive upward revision of the forecast.

Unilever PLC

Strong margins and dividends support Unilever, but a high P/S and P/FCF valuation and weak liquidity limit growth potential.

In trading on Tuesday, shares of Unilever plc (Symbol: UL) crossed above their 200 day moving average of $63.77, changing hands as high as $67.05 per share. Unilever plc shares are currently trading up about 9.1% on the day. The chart below shows the one year performance of UL shares, versus its 200 day moving average:
Looking at the chart above, UL's low point in its 52 week range is $54.75 per share, with $74.975 as the 52 week high point — that compares with a last trade of $67.16.
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
Further UL Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Unilever Breaks Above 200-Day Moving Average - Bullish for UL

Key Points
Stanley Black & Decker is a Dividend King that has materially transformed its business for the better.
McCormick is a leader in spices and flavorings, and it is working on a transformative acquisition.
Realty Income is a giant (and boring) net lease REIT with an over 5% yield.
Wall Street is so focused on technology stocks and artificial intelligence right now that it is ignoring great businesses with impressive dividends. And some of those businesses also have great dividend track records. If you are a dividend investor, these three beaten-down stocks could be just what you are looking for to power your income portfolio.
Stanley Black & Decker (NYSE: SWK) is a Dividend King that has rewarded investors with reliable passive income for over 50 years. McCormick (NYSE: MKC) is one of the world's leading spice producers, with a 38-year streak of annual dividend hikes. And Realty Income (NYSE: O) is a net-lease juggernaut with a dividend streak that's up to 31 years. Here's a closer look at each one.
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Stanley Black & Decker is turning things around
Stanley Black & Decker's dividend yield is around 3.7%, which is more than three times the roughly 1.1% yield of the S&P 500 index (SNPINDEX: ^GSPC). As noted, the industrial company is a Dividend King. It primarily makes tools, which are essential for building anything. It also makes fasteners.
The company went through a period in which it made a series of rapid, large acquisitions. That left it bloated, heavily leveraged, and with a poorly focused portfolio. Management has been working to change the narrative, selling assets, slimming down, and recentering on its core tool operations. Notably, net debt to adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) has fallen from 5.9x at the end of 2023 to 3.4x at the end of 2025. The goal is to reach 2.5x by the end of 2026. Leverage is no longer the issue it once was.
On the profitability front, the company's adjusted gross margin continues to improve, nearing the company's target range of 35% to 37%. Adjusted earnings per share guidance for 2026 of between $4.90 and $5.70 will more than cover the $3.32 in dividends per share the company will pay for the year. It looks like the company is back on track, but Wall Street remains downbeat, creating an opportunity for long-term dividend investors.
McCormick is working on a transformational acquisition
McCormick's dividend yield is also around 3.7%. That's historically high for this well-respected consumer staples company. The dividend has been increased annually for 38 years. The company is one of the largest spice producers in the world and has been expanding in the flavors space, as well.
Right now, investors are worried about the company's planned acquisition of Unilever's (NYSE: UL) food business, which consists of Hellmann's mayonnaise and Knorr. Both fit well with McCormick's business, but the deal will roughly double its size. There are material execution risks to consider. However, McCormick has some experience with acquisitions, and Unilever's food business is well run. Unilever is also taking a stake in McCormick, so it has a vested interest in ensuring the deal works out well.
If you don't mind collecting an attractive yield while you wait for this deal to be consummate, McCormick could be a good dividend stock for your portfolio.
Realty Income is the net lease giant
Realty Income's dividend yield is 5.1%, backed by a monthly pay dividend that has been increased annually for 31 years. The company is a slow-and-steady dividend tortoise that can provide a reliable, high-yield foundation for any dividend portfolio. Even the most conservative dividend investors will appreciate this real estate investment trust (REIT).
Realty Income owns a portfolio of over 15,500 properties. Most of its assets are single-tenant net-lease properties. This means its tenants have to pay for most property-level costs, materially reducing the REIT's costs and risk. The portfolio is focused on retail assets, but it also owns industrial properties and other, more unique assets, like casinos and data centers. About 80% of its rents come from North America, with the rest derived from Europe. Diversification and safety are key themes, noting that even during the Great Recession, occupancy didn't fall below 96%.
Realty Income's stock still hasn't recovered from the COVID pandemic sell-off. You shouldn't expect massive growth from Realty Income, but it is a reliable dividend payer that still looks underappreciated by Wall Street.
Three solid options for your income portfolio
Wall Street is focused on tech stocks and artificial intelligence today. It is overlooking boring old businesses like Stanley Black & Decker, McCormick, and Realty Income. That's a dividend opportunity for investors who think long term and don't mind venturing into areas other investors ignore.
Should you buy stock in Realty Income right now?
Before you buy stock in Realty Income, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,964!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,272,955!*
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*Stock Advisor returns as of July 17, 2026.
Reuben Gregg Brewer has positions in McCormick, Realty Income, Stanley Black & Decker, and Unilever. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends McCormick and Unilever. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Beaten-Down Stocks Built for Long-Term Passive Income

Key Points
The Kraft Heinz merger didn't work out as well as Warren Buffett had hoped.
Kraft and Heinz were both struggling businesses when they merged.
McCormick is an industry-leading spice and flavor company looking to acquire Uliver's industry-leading food brands.
Greg Abel took over the CEO job at Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) from Warren Buffett at the start of 2026. He's already proven to be a more proactive manager when it comes to the stocks Berkshire Hathaway owns and businesses it buys. One interesting move was his behind-the-scenes push to stop Kraft Heinz (NASDAQ: KHC) from splitting up its business. Despite the troubles Kraft Heinz has faced, Abel should still consider buying into McCormick (NYSE: MKC) and its planned acquisition.
One mistake is not a reason to avoid all consumer staples mergers
The Kraft Heinz merger was backed by Buffett, and it didn't work out well. But there was a problem with the deal from day one. Both Kraft and Heinz were bloated companies struggling to get back on track. The entire purpose of the merger was to simply cut costs, which is fine to a point. However, the consumer staples space is driven by innovation and advertising. Kraft Heinz focused so much on cost-cutting that it stopped being an innovative company. And advertising wasn't spared in the cost-cutting effort, either.
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Despite the less-than-desirable outcome with Kraft Heinz, Abel is pushing the company's new leadership team to right the ship before splitting the business in two again. Two bad companies are no better than one bad company. Despite Kraft Heinz's troubles, Abel should consider buying McCormick, as it is looking to acquire Unilever's (NYSE: UL) food business.
A big deal and a unique opportunity
This is a very large transaction for McCormick, as it will roughly double the company's size. Investors are worried about the transaction, noting that McCormick's stock fell on the news. It rose as investors digested the story, but then tumbled around 15% as the scope of the deal came into focus. While the shares have recovered after a solid quarterly earnings update, the stock has basically gone nowhere since the acquisition announcement.
So there's still time for Abel to buy McCormick while it offers a historically high 3.7% yield and a historically low price-to-earnings ratio of roughly 9x. The big opportunity for Abel is helping to finance the transaction, which could allow him to buy preferred stock, a share type that Buffett used to great effect with Bank of America (NYSE: BAC) when the giant bank needed cash.
The key to the story, however, is that McCormick isn't a struggling consumer staples company. It is an industry leader in spices and flavors. Unilever's food business, which is largely made up of Hellmann's and Knorr, is also well run. Helping two good businesses come together is a far more compelling investment opportunity than merging businesses solely to cut costs.
Abel has plenty of firepower
Berkshire Hathaway ended the first quarter of 2026 with nearly $400 billion in cash on its balance sheet. McCormick's deal with Unilever will require it to raise roughly $16 billion in cash. That's a drop in the bucket for Berkshire Hathaway, but it could get the company into an industry-leading consumer staples business that's on the verge of buying a long-term growth catalyst. Just because Kraft Heinz didn't work out, it doesn't mean McCormick's transformative deal won't be a success.
Should you buy stock in McCormick right now?
Before you buy stock in McCormick, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and McCormick wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $395,679!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,294,805!*
Now, it’s worth noting Stock Advisor’s total average return is 929% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Bank of America is an advertising partner of Motley Fool Money. Reuben Gregg Brewer has positions in McCormick and Unilever. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Kraft Heinz, McCormick, and Unilever. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This Looks Like the Perfect Stock for Warren Buffett and Greg Abel to Buy Right Now

Key Points
The company's core seasoning business has lost market share over the past few years to cheaper alternatives in the spice aisle.
Unilever Foods brands like Hellmann's and Knorr face less competition from store brands.
Integration will be a challenge, as the deal is not expected to close until at least mid-2027.
The spice aisle will no longer determine McCormick's (NYSE: MKC) fate. In March, the 137-year-old company announced an agreement to merge with Unilever's (NYSE: UL) food division, a business 1.5 times its size, in a $45 billion transaction.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The deal adds established brands like Hellmann's mayonnaise and Knorr bouillon to McCormick's portfolio, alongside household favorites like French's mustard and Frank's RedHot sauce.
The addition of Unilever Foods is an attempt to address the structural weakness that has weighed on the stock over the past few years. The complex nature of the transaction has done little to win over investors.
A strategic shift away from seasonings
The stock has been under pressure from the growth of private-label brands. In its core spice and seasoning category, store brands now command nearly 40% of unit volume, one of the highest penetrations in any grocery aisle.
This has eroded the company's pricing power and contributed to its recent underperformance. The merger is designed to dilute the effect of this challenged category.
Post-merger, the spice business will shrink from over 30% of total sales to less than 15%. In its place, McCormick adds categories like mayonnaise and bouillon, which face less private-label competition due to strong brand loyalty and taste differentiation.
The combined company will be larger, more diversified, and more profitable, with operating margins projected to expand from 17% to 21% post-integration. Yet, some investors see a complex transaction that dilutes current shareholders, adds significant debt, and creates a year-long overhang.
Integration will take time
The transaction is structured as a Reverse Morris Trust, which complicates matters for shareholders of both companies. Existing McCormick shareholders will be heavily diluted, while debt on the balance sheet will increase to 4 times net debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA).
Meanwhile, Unilever shareholders may create selling pressure on the stock after receiving their MKC shares.
The strategic rationale for reducing spice exposure is sound, but the execution risks create uncertainty. The merger is not expected to close until mid-2027 at the earliest, creating an extended overhang.
Currently, with inflation driving shoppers to cheaper alternatives, there's no reason to rush into the stock. As the dust settles on the deal and we get a better sense of the company's integration plans and cost structure, the stock could be worth a closer look.
Should you buy stock in McCormick right now?
Before you buy stock in McCormick, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and McCormick wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,970!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,200,223!*
Now, it’s worth noting Stock Advisor’s total average return is 916% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 7, 2026.
Bryan White has no position in any of the stocks mentioned. The Motley Fool recommends McCormick. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

McCormick Is Shifting From the Spice Rack to the Refrigerator With This $45 Billion Deal

Key Points
Colgate-Palmolive doesn’t depend on the U.S. market to drive sales growth.
The company’s margins are strong, although they have ticked down in recent years.
Colgate-Palmolive is expensive for all the right reasons.
As of market close on July 3, the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq-100 are up 9.3% and 16.2%, respectively, year to date (YTD). This is well ahead of their historical average annual gains. The tech sector, especially semiconductor stocks, has been the driver of broader market returns. But that doesn't mean all value stocks are underperforming the major indexes.
Colgate-Palmolive (NYSE: CL) is up 20.4% YTD. And it's also an ultra-reliable dividend stock that has paid uninterrupted dividends since 1895 and has increased its payout for 63 consecutive years. That streak earns Colgate-Palmolive a spot on the list of Dividend Kings, which are companies that have paid and increased their dividends for at least 50 consecutive years.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Here's why Colgate-Palmolive remains a top buy now even after its recent run-up.
Colgate-Palmolive is at the top of its game
Colgate-Palmolive has been a standout in the household and personal products industry. The company is guiding for 2026 net sales growth of 2% to 6% and organic sales growth of 1% to 4% at a time when many of its peers are experiencing sales declines. And even with margins under pressure, Colgate-Palmolive remains one of the most profitable companies in its industry. By comparison, Unilever, Kenvue, Church & Dwight, Clorox, Kimberly-Clark, and Estee Lauder all have operating margins under 20%.
The industry has been dealing with inflationary pressures and consumer resistance to price increases. But Colgate-Palmolive has done a masterful job of navigating these challenges through its elite brand portfolio, highly efficient supply chain and operations, and geographic diversification.
In addition to its flagship Colgate and Palmolive brands, the company owns Softsoap, Irish Spring, Tom's of Maine, and Speed Stick, among others. One of Colgate-Palmolive's top brands, Hill's Pet Nutrition, made up 23% of total 2025 sales.
Without factoring in Hill's, Europe, Middle East, and Africa (EMEA), Latin America, and Asia Pacific sales are more than triple those of North America, which has helped make Colgate-Palmolive resistant to U.S.-specific inflationary pressures. In the first quarter of 2026, North America was the only region that reported declining net and organic sales, while Latin America and EMEA posted double-digit growth and total company net sales rose 8.4% year over year.
A dividend you can count on
Colgate-Palmolive is far from cheap -- trading at 25 times forward earnings -- because the stock price has been rising faster than the company's earnings growth. But Colgate-Palmolive deserves its premium valuation because its results are solid despite a difficult operating environment. This resilience is particularly appealing to risk-averse folks seeking a stable passive income stream to help supplement retirement income. If inflationary pressures ease and consumer spending improves, a rising tide will lift the broader household and personal products industry. But Colgate-Palmolive isn't dependent on those factors to drive sales growth.
Colgate-Palmolive yields 2.2%, which is good but not quite high-yield territory. Many of its peers offer higher yields because they distribute the vast majority of their cash flow to shareholders through dividends, whereas Colgate-Palmolive's dividend is highly affordable. Its trailing-12-month free cash flow per share is at an all-time high of $4.66, well over double its $2.06 per-share annualized dividend.
So while Colgate-Palmolive could easily afford to pay a higher dividend, the company prefers a balanced approach of using cash to reinvest in the business, paying a steadily growing (and manageable) dividend, and buying back stock. Colgate-Palmolive has reduced its share count by 10% over the last decade, which has helped make the stock a better value.
Investing in a market leader
Colgate-Palmolive's geographic diversification and portfolio of leading brands across pet nutrition and oral, personal, and home care make it highly recession resistant. The company continues to deliver solid growth through volume and price increases, while many of its peers face a difficult trade-off: either cutting prices to drive volume or keeping prices high at the expense of lower sales volumes.
All told, Colgate-Palmolive stands out as one of the most reliable dividend-paying stocks on the market. It's a top buy for the second half of the year for investors who don't mind paying a premium price for a quality company.
Should you buy stock in Colgate-Palmolive right now?
Before you buy stock in Colgate-Palmolive, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Colgate-Palmolive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $418,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,195,804!*
Now, it’s worth noting Stock Advisor’s total average return is 918% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 7, 2026.
Daniel Foelber has positions in Estée Lauder Companies, Kenvue, and Kimberly Clark. The Motley Fool has positions in and recommends Colgate-Palmolive. The Motley Fool recommends Kenvue and Unilever. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Meet the Dividend King Stock That's Up 20% in 2026. Here's Why It Can Continue Outperforming the S&P 500 and Nasdaq-100 in the Second Half.

Key Points
Costco is one of the world's largest retailers and has grown strongly for years.
The stock's yield is modest, and its valuation is lofty.
I have been watching this other consumer stock for years, and it is finally trading at an attractive level.
There's a difference between a company and its stock. Costco (NASDAQ: COST) is a great example of the dichotomy. It is a well-run company, but the stock is very expensive. Paying too much for a great company can turn it into a bad investment. I just can't see owning Costco for the next decade.
However, McCormick (NYSE: MKC) is a well-run company with an attractive valuation. In fact, I recently initiated a position in the stock. Here's why I think McCormick is a better investment opportunity over the next 10 years than Costco.
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Costco is a great company
There's nothing wrong with Costco as a business. It is one of the world's largest retailers. It operates under a club store model, meaning customers pay an annual fee to shop at Costco stores. That membership fee creates an annuity-like income stream that allows Costco to keep its prices low and service levels high.
As a business, I absolutely love Costco. If someone wanted to buy it, I would be hard-pressed to dissuade them. However, I'm a dividend investor with a value bias. Costco's yield is 0.6%, which is even lower than the 1% yield on offer from the S&P 500 index (SNPINDEX: ^GSPC). That's not enough income to meet my needs.
Meanwhile, the price-to-sales ratio is 1.4x compared to a five-year average of 1.2x. The price-to-earnings ratio is 47x compared to a longer-term average of 45x. And the price-to-book ratio is 12.6x, which is only slightly below its 12.7x five-year average. All in, Costco's stock looks expensive to me. I think growth investors will probably make out well with Costco if they buy and hold for the long term, but that's just not how I invest.
McCormick is right up my alley
McCormick is one of the world's largest producers of spices and flavorings. It has a global reach and a solid history of business growth. Compared to Costco, it looks like a slow-and-steady tortoise, but that's not a problem for me. In fact, I like companies that are boring and sell relatively low-cost products that consumers buy regularly. Consumer staples makers like McCormick tend to be resilient in the face of bear markets and recessions.
Right now, however, McCormick is out of favor. Earnings have been pressured by inflation. Sales haven't been as robust as Wall Street hoped. That's OK, given McCormick's long and successful history as a business, I'm confident the company will muddle through this weak spot and thrive again. Especially when I look out over the next decade.
That said, Wall Street's short-term focus has opened up a buying opportunity. The stock's yield is historically high at roughly 3.6%. The 2x P/S ratio is below its five-year average of 3x. The 9x P/E is below its five-year average of 25x. And the 2x P/B ratio is below its five-year average of 3.8x. A good company trading at a historically high yield and an attractive valuation is hard for me to resist.
There's one big caveat with McCormick. It is about to buy Unilever's (NYSE: UL) food business. It is a big deal for McCormick, noting that Unilever's food business is bigger than McCormick's. McCormick is taking a big risk and will have to add leverage to get the deal done. However, McCormick has successfully integrated other food businesses in recent years. And Unilever's food business, which largely consists of Hellmann's and Knorr, is very well run. This isn't a fixer-upper situation, is a good food company merging with another good food company. I think the risk/reward balance is weighted to reward.
Now is the time to act on McCormick
I've watched McCormick for years, but it has always been too expensive for me to buy. Good companies don't go on sale very often. And when they do, there's usually a reason. With a long-term horizon, I'm jumping on McCormick while I can, even though there's some uncertainty around the business today. Costco is a great company, but the stock is probably best left on the wishlist if you are, like me, a dividend investor with a value bias.
Should you buy stock in Costco Wholesale right now?
Before you buy stock in Costco Wholesale, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Costco Wholesale wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $418,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,195,804!*
Now, it’s worth noting Stock Advisor’s total average return is 918% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 6, 2026.
Reuben Gregg Brewer has positions in McCormick and Unilever. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool recommends McCormick and Unilever. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

When I Try to Imagine the Best Investment Opportunity for the Next 10 Years, Costco Stock Just Doesn't Make the Cut. That's Why I Keep Coming Back to This Stock.

Key Points
The stocks listed here pay between 2.6% and 4.9% in dividends.
These are large, recognizable businesses that have solid fundamentals.
Dividend stocks that have fallen to 52-week lows can be enticing options to buy. When share prices drop, that means the yield you're collecting rises, since it means it costs less to acquire a piece of the business, and thus, the dividend income represents a greater proportion of the money you invest. Plus, at a lower price, there's the potential to profit from a rise in price should the stock rally in the future.
Three dividend stocks that recently hit new lows that you may want to consider buying today include McDonald's (NYSE: MCD), AT&T (NYSE: T), and Unilever (NYSE: UL).
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
McDonald's
Few companies in the world are as iconic as McDonald's. Its golden arches can be a welcome sight for travelers as the fast-food chain often represents a convenient and relatively low-cost option for a quick meal.
While prices have risen in recent years due to inflation, its restaurants still provide consumers with plenty of value, as evidenced by its continued growth. In the quarter ending March 31, McDonald's reported comparable sales growth of 3.8%, with performance broadly similar across international and domestic markets. It's a good sign of continually strong demand for its products.
McDonald's may not be a growth machine, but it is certainly a dependable and stable long-term investment. And, of course, let's not forget the dividend income you can generate from this investment. At 2.6%, its yield is more than double the S&P 500 average of 1%. The stock is down around 8% this year and recently hit a new 52-week low, but with a reasonable price-to-earnings (P/E) multiple of 23, it can be a great pick up today, as this is a top dividend stock you can comfortably hang on to for the long haul.
AT&T
Shares of AT&T have been falling recently as investors grow more concerned that SpaceX and its Starlink business may disrupt the broader telecom market. It's an issue that looks overblown, or at best, premature. Starlink is part of SpaceX's connectivity segment, which generated $11.4 billion in revenue last year. AT&T, by comparison, reported revenue that was 11 times that amount last year -- $125.6 billion.
AT&T is a top telecom provider, and while competition may chip away at some of its market share, the stock's recent decline represents a bit of an overreaction simply due to SpaceX gaining more attention of late as a result of its upcoming IPO. However, AT&T stock isn't exactly tumbling over a cliff; it's down around 9% for the year.
For dividend investors, this could be an opportune time to buy this low-volatility stock, as its yield is up around 4.9% right now. AT&T's stock is trading near its lows, and its valuation is enticing -- its P/E multiple is just seven.
Unilever
Top consumer brand Unilever is another dividend stock that's been struggling of late. Its shares are down 12% this year, making its decline the most significant on this list. The market has been concerned with the news that the company is looking to spin off its food business and the uncertainty that might bring.
While it might make the business smaller, Unilever sees it as an opportunity to be more of a pure play home and personal care company. That can help drive efficiency and allow the company to be more focused in its growth efforts. And although the food segment is a key one for Unilever, it was also its slowest-growing one in its most recent quarter, with management saying that "category conditions remained soft" in developed markets.
Unilever stock currently yields right around 4%, making it another excellent income stock to buy and hold. And with its price declining, the stock's valuation looks attractive, as it trades at a P/E ratio of just over 19.
Should you buy stock in McDonald's right now?
Before you buy stock in McDonald's, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and McDonald's wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,038!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,277,804!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool recommends Unilever and recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Bargain Hunters: These 3 Dividend Stocks Recently Hit New 52-Week Lows

Key Points
McCormick combines a century-long dividend record with transformative merger-driven growth potential.
Clorox's temporary operational challenges have created an attractive high-yield entry point.
Both consumer staples leaders offer a rare mix of income, stability, and discounted valuations.
There are certain kinds of investors who drive themselves bonkers trying to figure out exactly the right moment to buy. I know: I'm that way. You can watch the charts, wait for a dip, panic when it dips too far, and end up holding cash through years of compounding that you will never get back.
The honest answer to the question of "When should I buy?" is usually simpler than anyone wants it to be: When you find a great business at a reasonable price, you buy it, and then you hold it long enough for the dividend to do the work.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The following two companies are not flashy. One makes spices; the other makes cleaning products. But behind those ordinary descriptions are businesses with dividend growth streaks of more than four decades. Their brands sit in virtually every American kitchen and pantry, and their stock prices have been knocked down to levels not seen in years.
1. McCormick
McCormick (NYSE: MKC) has been paying dividends without interruption since 1925 -- which means it kept paying through the Great Depression, World War II, the dot-com crash, the 2008 financial crisis, and a pandemic. That kind of track record does not happen by accident; it's because the underlying business is genuinely hard to disrupt.
McCormick controls the flavor aisle. Its spices and seasonings are in roughly 80% of U.S. kitchens, and the company generates revenue in about 150 countries.
This is a strong company in a permanent sector: People always cook and always will. And when they reach for a bottle of garlic powder or Old Bay, they reach for McCormick.
What makes 2026 particularly interesting is that the stock has been punished for temporary reasons rather than structural ones. Shares have fallen roughly 30% to 40% from their 52-week highs and now sit at their lowest valuation in years, with a dividend yield that has swelled to around 4% -- a level historically associated with McCormick being on sale.
The bigger, less-discussed story with this company is its transformation. In March 2026, McCormick announced a merger with Unilever's foods division -- the business behind Hellmann's, among other brands -- creating a combined company with projected revenue approaching $20 billion.
Unilever is shrinking to grow by shedding food in favor of health and personal care; McCormick is growing by absorbing exactly the kind of globally distributed food brands it has always been built around. The deal is expected to close in mid-2027, and it will transform a great $13 billion company into a flavor giant with truly global reach.
To me, buying McCormick today is buying a 100-year-old dividend grower at a historically low valuation, on the eve of what could be the most transformative deal in the company's history. The income checks are already coming every quarter. The patient part is just waiting for the market to remember why it loved this company in the first place.
2. Clorox: boring name, beautiful business model
A company that has been growing its dividend for 48 consecutive years is, by definition, a business that has survived a lot. Clorox (NYSE: CLX) has done exactly that -- and right now, it is going through one of the rougher stretches in its recent history, which has pushed down its shares to a level that makes the long-term case genuinely compelling.
The near-term pain is real: Clorox has been navigating a messy transition in its enterprise resource planning (ERP) system that has disrupted shipments and caused earnings misses across several quarters. ERP transitions are the corporate equivalent of renovating the plumbing while the family is still living in the house -- necessary, disruptive, and eventually behind you.
The company has said that ERP-related costs are expected to diminish by the fourth quarter of the current fiscal year. That is not speculative -- it is a timeline provided by a management team with 48 years of experience running this business without cutting the dividend.
The more strategic move is the one that got almost no attention: a $2.25 billion acquisition of Gojo Industries, the maker of Purell hand sanitizer, that closed April 1, 2026. Think about what that means for the brand portfolio.
Clorox already owns its range of cleaning products and Pine-Sol, Glad, Hidden Valley salad dressings, Burt's Bees personal-care products, and Kingsford charcoal. Adding Purell puts it directly in the institutional health and hygiene space, giving the company a commercial sales channel it has never had before. Hospitals, schools, airports, office buildings -- these are customers that have been buying Purell products for 30 years and are unlikely to switch.
The stock yields around 5.5% at current prices and is trading at its lowest levels in years, down 37% from its 52-week high at one point in 2026. The dividend has never been cut, with 48 years of consecutive growth. There will be quarters where the numbers look messy while the ERP stabilizes and the Purell integration settles in. That messiness is the price of admission for buying a great consumer goods franchise at a real discount.
This is an easy stock to buy and hold forever.
Should you buy stock in McCormick right now?
Before you buy stock in McCormick, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and McCormick wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,847!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,342,065!*
Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 6, 2026.
Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool recommends McCormick. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Forget Timing the Market: Just Buy These Dividend Stocks and Hold Forever

Key Points
Consumer staples with pricing power are outperforming amid volatility, tariffs, and cautious spending.
Strategic mergers and spinoffs for McCormick and Keurig Dr Pepper are creating hidden value and long-term earnings catalysts.
Temporary market dislocations are offering attractive entry points into durable, global brands.
There's a reshuffling happening in the consumer sector. Market volatility, tariff pressure, and a cash-strapped consumer that's becoming more deliberate about spending have created a unique window. Companies with durable brands and pricing power are trading at levels that may not last.
Here are four stocks worth a serious look right now, this month, in May.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
1. Coca-Cola
When a company operating in nearly every country on earth beats revenue and earnings per share (EPS) estimates and raises its full-year guidance, that's worth noting and potentially buying. Coca-Cola (NYSE: KO) reported first-quarter 2026 results on April 28. It posted revenue of $12.47 billion, up 11.2% year over year, and comparable EPS of $0.86, beating consensus by 5.9%.The company then raised its full-year comparable EPS growth guidance to 8% to 9%, up from a prior range of 7% to 8%.
What's driving it isn't just price hikes. Unit case volume grew 3% globally -- meaning actual demand, not just dollar math, is expanding. For newer investors, unit case volume is the metric that proves pricing hasn't chased away customers. Coca-Cola also gained value share across sparkling beverages, water, sports drinks, coffee, and tea -- a rare broad sweep. Coca-Cola is a solid, slow buy that will only go higher over time.
2. Walmart
Walmart (NASDAQ: WMT) is somewhat of a tariff paradox to me. The company reports its fiscal Q1 2027 results on May 21, and the setup is unusually compelling. Here's the counterintuitive thesis: Tariff anxiety, which has spooked markets broadly, may actually be Walmart's ally. When people feel economic pressure, they trade down -- and they trade down to Walmart. High-income households (those earning over $100,000 annually) have been contributing meaningfully to Walmart's comparable sales gains, shifting from specialty grocers to its private-label brands. That trend is likely to continue as tariff costs seep into everyday prices across retail categories.
Over the last year or so, Walmart has also committed to keeping grocery prices "as low as [it] can," explicitly refusing to let tariff pressure on general merchandise flow through to food. This positioning directly targets the most frequency-driven category in retail.
3. McCormick
McCormick (NYSE: MKC) announced in late March that it will merge with Unilever's (NYSE: UL) foods business -- the division that owns Hellmann's, Knorr, and related brands -- creating a combined company with approximately $20 billion in annual revenue. The deal is expected to be accretive to McCormick's EPS in the first full year, with $600 million in expected annual run rate cost synergies. It significantly expands McCormick's footprint in emerging markets, including Brazil, China, and Europe. McCormick will retain its name, Maryland headquarters, and NYSE listing post-merger.
For a retail investor like me, this sounds kind of boring, but it is a sign that this stock was already inexpensive before the announcement and has now taken on a transformational catalyst that won't close until mid-2027. That timing creates a window. If you look at the stock's one-year price chart, it's not pretty right now, which is why I think now is a good time to start accumulating the stock.
There is a risk here of deal execution. Integrating a food division of this scale is complicated, and leverage will rise temporarily. But the long-term strategic logic -- dominant global spice and condiment brands under one roof -- is hard to argue with.
4. Keurig Dr Pepper
Keurig Dr Pepper (NASDAQ: KDP) closed its acquisition of JDE Peet's on April 1, creating a global coffee powerhouse spanning brands like Peet's, Jacobs, L'Oréal, and Keurig across more than 100 markets. More importantly for investors, the company has announced plans to separate into two independent, U.S.-listed businesses: A North American refreshment beverages company and a pure-play global coffee company, with the coffee spinoff planned for operational readiness by year-end 2026.
The Q1 2026 earnings report, released April 23, beat on both EPS and revenue, and the company reaffirmed full-year guidance for low-double-digit adjusted EPS growth in constant currency. The JDE Peet's deal is expected to be approximately 10% EPS accretive in its first full year. The separation is where the real value unlock lives: Two focused businesses, each with a distinct capital allocation story, attracting different investor bases.
Should you buy stock in Coca-Cola right now?
Before you buy stock in Coca-Cola, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $473,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,204,650!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of May 6, 2026.
Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool recommends McCormick and Unilever. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Best Stocks to Buy Right Now for May

Key Points
Procter & Gamble’s high margins and cash-flow support its growing payout.
The company is well positioned to weather an industry-wide slowdown.
Procter & Gamble’s valuation is at multiyear lows.
Procter & Gamble (NYSE: PG) just announced its 70th consecutive annual dividend raise, boosting its quarterly payout from $1.0568 per share to $1.0885 per share, or $4.354 per year -- good for a forward yield of 3% based on the share price at the time of this writing.
The dividend increase makes P&G one of the longest-tenured Dividend Kings, which are companies that have increased their payouts for at least 50 consecutive years. There are 57 Dividend Kings -- but only five of them have increased their dividends for at least 70 consecutive years.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Here's why P&G is a top dividend-paying value stock to buy now.
P&G is in a league of its own
Procter & Gamble is the largest household and personal products company in the world and the third-largest U.S. consumer staples company by market cap -- behind Walmart and Costco Wholesale, but ahead of Coca-Cola.
P&G has a portfolio of leading brands across everyday-use categories spanning:
Diapers (led by Pampers)
Paper towels (Bounty)
Toilet paper (Charmin)
Tissues (Puffs)
Feminine products (led by Always)
Grooming and hair care (Gillette, Old Spice, Pantene, and Head & Shoulders, among others)
Cleaning products (Dawn, Cascade, Febreze, etc.)
Laundry detergents (Tide, Gain, and others)
Oral and personal healthcare products (Crest, Oral-B, Vicks, etc.)
Skin and personal care (Olay, SK-II, etc.)
P&G's international brand recognition, elite supply chain and marketing, and sheer size across categories give it impeccable pricing power and negotiating leverage with retailers. These advantages allow P&G to consistently generate operating margins above 20% -- often ahead of its peers.
Despite its competitive advantages, P&G's growth slowed in recent years due to consumer spending challenges driven by higher living costs and inflationary pressures, including higher everyday expenses and now elevated oil prices. P&G is generally considered a recession-proof business because demand for its products remains consistent across economic cycles. But consumers can change their behavior when budgets are strained and may opt to buy a private-label brand like Costco's Kirkland Signature diapers, for example, instead of Pampers to stretch their dollars.
A measured dividend increase
Given the state of P&G's business and the slowdown in the broader household and personal products industry, it's unsurprising that P&G's latest dividend raise was just a 3% increase. Historically, it's far more common to see P&G raise its dividend by mid-to-high single digits. But it's not unheard of for P&G to announce a low-single-digit raise.
The most recent example was 2023, when P&G coincidentally also raised its dividend by just 3%. This made sense at the time, given that P&G was coming off years of price increases and inflationary pressures were on the rise post-pandemic.
Maintaining a 70-year streak of dividend increases means P&G has to consistently grow its earnings and avoid outsized raises during particularly good years, because the last thing P&G wants is for the dividend expense to get so large that it gobbles up all its free cash flow (FCF).
P&G's dividend expense is still at a healthy level. Its trailing-12-month earnings per share of $6.75 and $6.09 in FCF per share easily cover its dividend, even after the latest raise. And the payout ratio of 61.9% is rock solid for a consumer staples company.
P&G is a uniquely flexible conglomerate
Aside from high margins, earnings, and FCF, what makes P&G such an elite dividend stock is its ability to take what the market gives it by leaning into whatever product categories and geographic regions are doing well.
For example, in P&G's latest quarter, which was the second quarter of fiscal 2026, Latin America and Europe helped offset weak performance in North America. Hair care was P&G's best category, and skin and personal care, personal healthcare, home care, and oral care also helped pick up the slack from weak performances in grooming, fabric care, baby care, feminine care, and daily care.
P&G doesn't rely too heavily on any particular region or product category. And even within specific categories, it can retain a customer sale even during spending pullbacks. For example, a customer may pivot from Tide to a generally less expensive detergent brand like Gain to cut costs, or from Pampers to Luvs. But P&G still lands the sale because it owns both the premium-priced category option and a more budget-friendly choice.
A top stock to buy and hold
P&G is one of the most reliable dividend stocks for value investors to buy and hold. But P&G rarely trades at a discount to the S&P 500 (SNPINDEX: ^GSPC), given its quality.
Now is an incredible opportunity for investors to buy P&G on sale. The sell-off in the stock has pushed its yield to around a five-year high and the valuation down to a five-year low. P&G sports a price-to-earnings (P/E) ratio of just 21.4 and a forward P/E of 20.8 compared to 20.3 for the S&P 500.
Add it all up, and P&G checks all the boxes of a dividend stock that can anchor a passive income portfolio.
Should you buy stock in Procter & Gamble right now?
Before you buy stock in Procter & Gamble, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Procter & Gamble wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $581,304!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,215,992!*
Now, it’s worth noting Stock Advisor’s total average return is 1,016% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Daniel Foelber has positions in Estée Lauder Companies, Kenvue, Kimberly-Clark, and Procter & Gamble. The Motley Fool has positions in and recommends Colgate-Palmolive, Costco Wholesale, Kenvue, and Walmart. The Motley Fool recommends Unilever. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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