Looking into the recent economic indicators, we note that retail activity is picking up. Healthy gains can be seen in payrolls and new-home sales. As many as 215,000 jobs were created in July and the unemployment rate is hovering around 5.3%, according to the Bureau of Labor Statistics. The economy is gaining momentum, as is evident from the July retail sales data released by the Commerce Department.

Despite an improved economic picture, many companies in the consumer staples space were hurt by a competitive environment and unfavorable currency impact. Other global issues including potential price wars, political turmoil in Russia, sluggishness in China and Japan, and struggle in Europe adversely impacted the financial health of these companies. Moreover, it seems that the strength in the dollar will persist through the remainder of the year.

The Winning Strategy

In the face of such odds, investors should be very careful about their strategy.

With the U.S. economy picking up steam, investors should venture into dividend stocks. Not only do these stocks offer higher income in the current low-rate environment but also provide a cushion against equity market risks.

Moreover, dividend stocks are historically less volatile and are proven outperformers over the long term. These stocks are a safe bet as dividends generally act as a hedge against economic uncertainty.

3 Dividend Yielding Consumer Stocks to Buy Now

The following stocks are good bets for now all of them offer a dividend yield of above 3% and flaunt a solid Zacks Rank. These consumer staples stocks provide generous dividends and possess upside potential.

Kimberly-Clark Corporation KMB

Delaware-based Kimberly-Clark has a Zacks Rank #2 (Buy) and has a dividend yield of 3.03%. It is one of the leading players in several consumer product categories including diapers, paper goods and female personal care.

The company is cash rich and has a consistent track record of returning cash to shareholders in the form of dividend payments and share buybacks. The company returned $3.3 billion in 2014 and $2.4 billion in 2013 to its shareholders through share repurchases and dividends. In 2015, the company expects to return at least $2 billion through dividends and share repurchases.

The company has increased its annual dividend for 43 consecutive years including 4.8% in 2015, 3.7% in 2014, 9% in 2013, 9.5% in 2012 and 6% in 2011.

The company is seeing solid activity on the estimate revision front as well. In fact, over the past month, current year estimates have risen from $5.76 per share to $5.77 per share.

Altria Group, Inc. MO

Marlboro maker Altria Group is one of the leading manufacturers of cigarettes and smokeless tobacco products in the U.S.

Altria boasts a solid balance sheet and regular shareholder returns. This Zacks Rank #2 company has consistently raised its dividend, since its spin off of Philip Morris International, Inc. PM in 2008. According to Altria's most recent 10-K filing, the company has paid just over $10.9 billion in dividends during the three years ending 2014. Currently, it provides an impressive dividend yield of 3.77%.

The company’s earnings results were impressive as well. Altria impressed with top and bottom line increases of 5.5% and 13.1% year over year, respectively in the recently reported second quarter 2015 results. The company’s cigarette shipments improved 2.4% in the first half driven by retail share gains in its flagship brand Marlboro. Strong pricing power has also supported Altria’s margins since the beginning of the year.

Moreover, Altria raised its 2015 earnings guidance following a better-than-expected first half performance. In fact, over the past month, current year estimates have risen 0.4% to $2.81 per share.

Diageo Plc DEO

London-based brewer Diageo plc is a multinational branded food and drinks company and holds a Zacks Rank #2.

The company has been regularly paying dividends to its shareholders. Recently, Diageo announced its dividend of 34.9 pence per share, which will be paid on Oct 8 to shareholders on the register as of Aug 13. Currently, the beverage company has a dividend yield of 4.97%.

The owner of leading brands like Johnnie Walker, Ciroc and Smirnoff has been expanding fast in the emerging markets. The company acquired full ownership in United Spirits Limited, a leading spirit company of India during fiscal 2015. Further, it gained full control of the tequila brand, Don Julio, in February 2015, in an attempt to boost its presence in the premium tequila category.