Three dividend stocks outperform XLP ETF in yield and growth, offering better income and value.

The Consumer Staples Select Sector SPDR Fund (XLP) holds many consumer staples stocks but blends very different yield and growth profiles, diluting income potential. Key holdings like Coca-Cola, Procter & Gamble, and Altria offer stronger dividends, growth, and value when owned directly rather than through the ETF. Coca-Cola shows nearly 30% YTD gains with solid dividend growth, Procter & Gamble offers a rare valuation discount with steady dividends, and Altria provides a high 6.27% yield despite regulatory risks. Investors seeking better income and dividend growth may benefit from owning these three stocks directly, though they should consider risks like single-stock exposure and tax implications before swapping out of XLP.