3 Dividend Stocks Yielding 3% or More to Buy Right Now for Passive Income

Kimberly-Clark, Hormel Foods and Mondelez each yield at least 3%, with reported yields of roughly 4.7%, above 5% and slightly above 3%, respectively. Kimberly-Clark reported 2025 revenue of $16.4 billion, down 2.1% year over year, and about $2 billion in net income after transferring majority control of its international tissue business for $1.73 billion; Hormel's recent dividends exceeded reported quarterly earnings, partly due to non-cash impairment charges. Mondelez is still absorbing higher cocoa costs locked in through hedges, though management expects relief as 2027 approaches; the article presents the stocks as income options but notes that dividends are not guaranteed.

Analysis

The key distinction is between a durable operating payout and a dividend that looks safer because of a one-time balance-sheet inflow. For KMB, the transaction with Suzano may reduce exposure to international volatility, but also leaves a more concentrated North American tissue business facing retailer private-label pressure. Treat the cash proceeds as a capital-allocation bridge, not recurring dividend coverage; verify how management deploys them and whether the remaining business sustains cash generation. Suzano gains control of the transferred tissue operations, but the economics depend on execution and are not enough here to underwrite a broader earnings step-up.

HRL has the weakest quality signal: impairment-adjusted earnings may tell a better story than reported earnings, but neither brand extensions nor a new CEO establish that cash conversion and dividend coverage are improving. In the next 1–3 months, watch operating cash flow, working capital, and organic volume—not adjusted EPS alone. Over 6–18 months, premiumization only helps if incremental pricing/volume offsets marketing and input costs.

MDLZ offers the clearest potential cost-relief catalyst, but spot cocoa declines do not translate immediately into margins when hedges defer the benefit. Hedge-roll timing, consumer response to smaller packs, and volume trends matter more than the commodity headline. Relief could support margins into 2027, but renewed cocoa inflation or weaker volumes would reverse the setup. The article supplies no valuation or cash-flow detail to justify buying any of these solely for yield; near-term reaction is likely limited absent earnings revisions.

Key Decisions for Investors

• Prefer MDLZ as a conditional watch/accumulate candidate over HRL, but wait for earnings to confirm improving gross margin alongside stable volumes as higher-cost hedges roll off. Falsify the thesis if cocoa costs reaccelerate or volume deterioration offsets margin recovery.
• Do not capitalize KMB’s transaction proceeds as recurring dividend coverage. Before adding, verify post-deal free cash flow, dividend coverage, and the use of proceeds; reassess if the remaining North American business shows sustained volume or margin erosion.
• Keep HRL neutral-to-underweight versus higher-quality staples until reported earnings and operating cash flow support the payout without relying on impairment-adjusted figures. A sustained improvement in cash conversion and volumes would invalidate that cautious stance.
• Avoid a yield-only basket or options trade at this stage: valuation, cash-flow coverage, and current market pricing are missing. Revisit after the next company results, using revisions to margins, volumes, and free cash flow as the decision triggers.