CCA Industries, (CAW), currently has the highest dividend yield in the Consumer Staples industry sector in our High Dividend Stocks tables. CAW, founded in 1983, sells health and beauty aid products, mainly in the US and Canada.

CCA just reported a 40%-plus jump in third quarter earnings per share, and a 5%-plus jump in revenue.

CCA’s board of directors declared a $0.07 cash dividend payable to all shareholders of record November 2, 2009 payable on December 2, 2009, the twenty-second consecutive dividend paid by the company.

The 7-cent quarterly dividend appears to be well covered by CAW’s 16-cents earnings per share this quarter, giving CAW a conservative dividend payout ratio.

CAW is virtually debt-free, and has a quick ratio of 1.72, vs. an industry average of only .57.

It also looks undervalued, when compared to its peers’ averages for P/E, Price/Book, and Price/Free Cash Flow/Share.

Although there are no options available for CAW, it appears to be one of the best stocks to buy in its sector, which isn’t known for high dividend paying stocks.  You can increase your returns on this stock via dividend reinvestment, which, as we’ve written about previously, is a very powerful tool, when coupled with compound interest. (See our article, “Einstein and the Rule of 72″).