[U.S. Stock Trends] 3 Easy Investment Options for Asset Formation: General Mills [GIS], Clorox Company [CLX], PepsiCo [PEP] | Motley Fool U.S. Stock Information | MoneyCrea Media for Investment Information and Financial Assistance from Monex Securities

Motley Fool U.S. Headquarters – August 3, 2025, from the posted article

A highly reliable large consumer goods company that boasts high dividend yields for many years.

If you aim to build assets, one of the easiest methods is to purchase reliable dividend stocks. One of the best sectors to find such dividend stocks is the consumer staples sector. Currently, some well-known consumer goods stocks such as General Mills [GIS], Clorox Company [CLX], and PepsiCo [PEP] are trading at undervalued price levels. Now, let's take a look at each of these stocks.

1.General Mills [GIS] is facing headwinds, but there should be no issues.

Wall Street tends to focus on very short-term perspectives, but this is good news for investors with a long-term vision. Specifically, General Mills, one of the largest packaged food manufacturers in the world, is experiencing a downturn in its business. Sales for the fourth quarter of fiscal 2025 decreased by 2%. As a result, investors are shying away from this stock, and the dividend yield has risen to a historically high level of 4.8%.

General Mills is a company that does not lag behind its competitors in the business sector. It has a strong brand portfolio, impressive track record of innovation, and top-notch distribution and marketing capabilities. The current performance slump as of 2025 is due to changes in consumer trends and purchasing habits. This is not unusual. The company is accustomed to adjusting to the times. This is why it has continued to pay dividends for 124 years.

Dividends do not increase every year, but they generally show an upward trend in the long term. As long as people do not suddenly stop eating, General Mills will find a way to get back on a growth trajectory. In fact, the company has done so multiple times over the past 100 years.

2. The Clorox Company [CLX] is recovering its profit margins

The Clorox Company (hereafter referred to as Clorox) is somewhat different from General Mills. While General Mills focuses on food products, Clorox concentrates on brands and categories where it believes it can become an industry leader. As a result, it has built a diverse brand portfolio including Burt's Bees, Brita, Glad, Hidden Valley, Fresh Step, Kingsford, and of course, Clorox. In several key niche markets, Clorox is the only branded product within the category, becoming a leading presence in that product category.

This is an attractive business model that has achieved good results over many years. Clorox has increased its dividend for 48 consecutive years and is just 2 years away from earning the title of "Dividend King." The dividend yield is also at a historically high level of around 3.8% as of 2025.

One of Clorox's major challenges was the significant decline in profit margins following the COVID-19 pandemic. However, the management has been working hard to address these headwinds and has achieved significant results. The company's gross profit margin has improved by about 10 points from the lowest level recorded in 2022. Cost reductions, operational efficiencies, and innovations have greatly contributed to this improvement. Clorox is a proven company that has maintained a consistently high dividend yield while striving to recover its profit margins.

3. PepsiCo [PEP] is already exploring new avenues for growth

PepsiCo is a food manufacturer that focuses on beverages (Pepsi) and snack foods (Frito-Lay). It also engages in packaged foods through its Quaker Oats business, but this is a smaller scale operation. Currently, PepsiCo is somewhat out of touch with customer needs, and its growth rate lags behind major competitors like Coca-Cola [KO]. As a result, investors are avoiding PepsiCo stock in favor of its competitors.

Currently, there is a historically high dividend yield of 3.9%, which may be considered a good investment opportunity. Like General Mills and Clorox, PepsiCo is a leading company in the industry in terms of competitiveness. However, even excellent companies face difficult times. The question is what companies do during those challenging periods. In PepsiCo's case, the answer is to "endure patiently and continue with the strategies that have historically succeeded."

PepsiCo's initiatives include innovation, business optimization, and new brand acquisitions for brand portfolio refreshment. These are not particularly novel efforts but rather part of daily operations. However, it is this accumulation that has allowed PepsiCo to continue increasing its dividends annually for over 50 years, earning it the title of "Dividend King."

Even in difficult times, PepsiCo remains steadfast. It continues to operate at a high level. Its past performance indicates that this beverage and snack giant will ultimately return to a growth trajectory. By purchasing this stock now, you can receive a high dividend yield while waiting for a turnaround.

It is not difficult to own excellent companies.

General Mills, Clorox Company, and PepsiCo are facing the challenge of overcoming recent poor performances. To do this, it would be beneficial to focus on how these companies have operated over the long term. This will clarify the reasons for purchasing these historically high-dividend stocks. All that remains is to receive dividends steadily while waiting for improvement. History has shown that given time, these prominent consumer goods manufacturers have provided sufficient returns to investors.

Disclaimer and Disclosure The article is intended solely for general informational purposes and does not constitute investment advice to investors. The original author, Reuben Gregg Brewer, holds shares of Clorox Company, General Mills, and PepsiCo. The Motley Fool's U.S. headquarters does not hold shares in any of the mentioned securities. The Motley Fool has established an information disclosure policy.