2 Under-the-Radar Consumer Staples Stocks With Big Dividends

Key Points

• In volatile markets, investors gravitate toward consumer staples for their inherent stability and trusted brand portfolios.
• Despite recent earnings weakness, Edgewell benefits from strong global brand recognition and stands to gain from a weaker U.S. dollar.
• Backed by iconic brands and activist interest, Kenvue presents a compelling opportunity for income investors and potential value unlocking.

During volatile markets, investors seek safety and defense in the consumer staples sector as necessities like food, health and hygiene products become the top priorities.

There’s also a psychological element at play: consumers gravitate toward familiar household brands they’ve trusted for years. In unstable times—whether due to weather, tariffs, or geopolitical tension—stability becomes a form of comfort.

Let's take a look at two lesser-known consumer staples stocks that have the inherent stability essential for an income portfolio. Although the company names may not be familiar, their portfolio of iconic brands will be.

Edgewell: Known Products, Underrated Stock

Schick razors, Edge shaving cream, Stayfree and Playtex tampons, and Banana Boat and Hawaiian Tropic sunscreens are a few of the name-brand products in Edgewell Personal Care Co.'s NYSE: EPC portfolio of household goods. The company primarily produces products in three categories: wet shave, feminine care, and sun and skin care.

While their brand portfolio is well known, they also have a thriving private label business creating custom, high-quality products for a wide range of retailers in brick-and-mortar stores and direct-to-consumer (DTC) businesses. Edgewell has over 2,000 global patents and 91% distribution of the top 50 global private-label shave retailers.

Q1 2025 Earnings Report: Weak Results in a Strong Market

Edgewell’s domestic business was soft during a strong market heading into 2025.

The company recently reported fiscal Q1 2025 (or the period ending in calendar year December 31, 2024), including an earnings per share (EPS) of seven cents, which missed consensus analyst estimates by five cents. 

Revenues fell 2.1% year-over-year (YOY) to $478.4 million, falling short of $480.11 million consensus estimates.

While organic net sales fell 1.3%, international market sales rose 2% YOY, driven by price and volume gains in Wet Shave and Sun and Skincare. Gross margin fell 30 basis points to 40.1%, including 140 basis points of negative foreign currency.

Adjusted earnings-before-interest-taxes-depreciation-and-amortization (EBITDA) was $45.9 million, inclusive of $11.2 million in unfavorable currency impact.

Dollar Drop = Revenue Rebound

Edgewell’s 2025 guidance, issued in early February, cited a strong U.S. dollar as a headwind. But since then, the dollar—as tracked by the Invesco DB US Dollar Bullish Fund ETF NYSEARCA: UUP—is down nearly 7%.

That’s a big deal: 20% of Edgewell’s revenue comes from international sales. A 10% drop in the dollar could add $40–$50 million to annual revenue. With full-year EPS forecast between $3.15 and $3.35 (midpoint $3.25 vs. $3.18 consensus), there’s now clear upside.

A weaker dollar increases the USD value of foreign sales, making U.S. goods cheaper for international customers, which can increase demand. It can also offset some of the tariff impacts. While revenues declined in the United States, the company saw a 2% growth in foreign sales.

Even better, the stock pays a 2.01% dividend yield, making it a compelling income play.

Kenvue: Quiet Giant with Big Brands

If Edgewell is low-key, Kenvue Inc. NYSE: KVUE is hiding in plain sight.

Spun off from Johnson & Johnson NYSE: JNJ in 2023, Kenvue is the powerhouse behind Tylenol, Motrin, Listerine, Band-Aid, Neutrogena, and Aveeno. These are category leaders, not just in sales but in trust. Tylenol is the #1 pain reliever recommended by doctors; Band-Aid is the #1 adhesive bandage brand.

Q4 2024 Earnings Report: FX Headwinds, But Just for Now

Kenvue released its most recent earnings report on February 6, 2025, noting a strong U.S. dollar impacted it. Like Edgewell, foreign currency dragged results, and guidance for 2025 factored in continued dollar strength.

The company reported Q4 EPS of 26 cents, which was in line with consensus estimates. Revenues fell 0.1% YOY to $3.55 billion, falling short of the $3.76 billion consensus estimates. Gross profit margin grew 80 basis points to 56.5%. Organic sales rose 1.7% YOY, led by 2.9% growth in Self Care (Tylenol, Motrin, Zyrtec) and 2.6% growth in Skin Health & Beauty (Neutrogena, Aveeno), while Essential Health (Band-Aid, Listerine) saw a decline of 0.7%.

Is Guidance Too Conservative?

Kenvue CEO Thibaut Mongon attributed the softer sales and subsequent guidance to forex headwinds and less demand in Essential Health.

“We're entering 2025 with a challenging external environment, economic uncertainty, geopolitical tensions, and a stronger dollar. In parallel, consumers continue to look for convenience and value but are not compromising on their health," Mongon said.

With 20% of its sales from international markets, Kenvue benefits from a weaker dollar. Since guidance was issued, the U.S. dollar has dropped 7%, potentially flipping FX headwinds into tailwinds.

Kenvue expects 2025 organic sales to grow 2% to 4%, with a 3% headwind from foreign currency translation. The company also anticipates YOY adjusted operating income margin improvement and an adjusted diluted EPS growth of flat to 2% YOY, which includes a mid-single-digit unfavorable impact from foreign currency. The outlook doesn’t include any tariff impacts. 

The dollar drop could soften that drag—or even reverse it. Kenvue also sweetens the deal with a 3.71% dividend yield.

Bonus Catalyst: Activists Are Circling Kenvue

Kenvue is still in the process of fully separating from J&J (expected in 2H 2025), but the sharks are already circling. TOMS Capital Management has built a stake and is pushing for a breakup. Starboard Value recently ended a proxy fight with a win, adding three directors to the board—including CEO Jeff Smith.

The result? Kenvue may become a breakup or acquisition story, offering a second catalyst beyond FX shifts and organic growth.