2 Consumer Dividend Stocks to Buy for High-Yield Dividend Growth

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Reuben Gregg Brewer, The Motley FoolThu, February 26, 2026 at 9:45 AM GMT+1 3 min readDividend investors often get too focused on dividend yield, forgetting that dividend growth is important, too.Indeed, if your dividends don't keep up with inflation, their buying power will actually shrink over time. A solid combination of yield and proven dividend growth can be had with PepsiCo (NASDAQ: PEP) and Realty Income (NYSE: O).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 »Image source: Getty Images.With more than five decades of dividend increases behind it, PepsiCo is on the highly elite Dividend Kings list. Its 3.3% dividend yield is three times larger than the 1.1% yield on offer from the S&P 500 (SNPINDEX: ^GSPC). That's a great start, but now add in average annualized dividend growth of 7%, and you complete the picture.The business behind all those dividend stats is equally compelling. PepsiCo is one of the world's largest consumer staples companies, with leading positions in beverages, salty snacks, and packaged food products. It stands toe-to-toe with its competitors in innovation, distribution, and marketing.Right now, the business is struggling a little bit as it adjusts to changing consumer tastes and increasingly cost-conscious buyers. Given PepsiCo's long and successful history, dividend growth lovers should probably give management the benefit of the doubt.Realty Income is the largest net lease real estate investment trust (REIT), with more than 15,500 properties. Roughly 80% of its rents come from single-tenant retail assets. While it isn't exactly a consumer business, since its customers are retailers, its rents are tied directly to consumers.That said, the big draw here will be the REIT's lofty 4.8% dividend yield. That yield is backed by three decades of annual dividend increases. Dividend growth has averaged around 4% or so over that span, which slightly outpaces the long-term growth rate of inflation over time.Given the REIT's scale, slow and steady growth in the business and the dividend is likely to be the norm for the foreseeable future. That remains true even as Realty Income expands into new business lines to bolster its growth profile. So you are basically giving up a little dividend growth in exchange for maximizing the income your portfolio generates.PepsiCo is clearly the more growth-oriented dividend stock, but Realty Income's larger yield is still very enticing. The best option might actually be to buy both, giving you access to income today and dividend growth for even more income tomorrow.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,848.68 -60.18 (-0.87%)Dow 3048,821.05 -678.15 (-1.37%)Nasdaq22,575.09 -303.29 (-1.33%)Russell 20002,617.30 -59.99 (-2.24%)VIX20.87 +2.24 (+12.02%)Gold5,242.60 +48.40 (+0.93%)Trending tickersNFLX Netflix, Inc. 95.08 +10.47 (+12.38%)DELL Dell Technologies Inc. 147.69 +26.24 (+21.61%)XYZ Block, Inc. 62.60 +8.07 (+14.80%)NBIS Nebius Group N.V. 90.18 -14.70 (-14.02%)BTC-USD Bitcoin USD 65,626.74 -1,576.33 (-2.35%)PortfolioSign in to access your portfolioSign inTop gainersAAOI Applied Optoelectronics, Inc. 77.62 +23.93 (+44.57%)BWIN The Baldwin Insurance Group, Inc. 22.96 +4.47 (+24.18%)FIGS FIGS, Inc. 15.42 +2.95 (+23.66%)PSKY Paramount Skydance Corporation 13.80 +2.62 (+23.43%)DELL Dell Technologies Inc. 148.21 +26.76 (+22.03%)Top losersRUN Sunrun Inc. 12.72 -7.70 (-37.68%)FIGR Figure Technology Solutions, Inc. 25.98 -8.07 (-23.69%)CRWV CoreWeave, Inc. 78.17 -19.46 (-19.93%)AMBA Ambarella, Inc. 57.78 -13.12 (-18.51%)DUOL Duolingo, Inc. 96.94 -20.51 (-17.46%)Most activeNVDA NVIDIA Corporation 178.90 -5.99 (-3.24%)NFLX Netflix, Inc. 95.05 +10.44 (+12.34%)PLUG Plug Power Inc. 1.7850 -0.1250 (-6.54%)MARA MARA Holdings, Inc. 9.29 +0.84 (+9.90%)SOFI SoFi Technologies, Inc. 17.58 -1.52 (-7.98%)Top economic eventsEarnings eventsMy earnings eventsEarnings events