Hari: 30 November 2022

The rise of the middle class in developing countries has led to increased demand for consumer staples products. The consumer staples sector consists of companies providing basic goods and services. This sector includes food and beverages, personal care, and home appliances. The consumer staples sector is generally considered defensive because consumer demand for basic goods and services is relatively insensitive to economic cycles.

Look for companies with strong balance sheets and a history of profitability. These companies are more likely to weather economic downturns and continue to pay dividends. When assessing a company’s ongoing ability to pay dividends, one factor to consider is its dividend payout ratio, which is measured as a percentage.

Choose your best consumer staples stocks by looking for recognized and essential brands, healthy balance sheets, a proven leadership team and a solid growth history. Those are the qualities of stocks that can make you rich in the long-run. In 2022, the segment managed inflationary pressures well enough to outperform the broader market. The consumer staples segment of the S&P 500 dipped 1%, while the rest of the S&P 500 fell 20%. Year to date, the S&P 500 excluding consumer staples stocks rose 24%, while the makers and sellers of essential goods fell 3%. P&G is currently developing innovative products, including the nontoxic insect repellent Zevo.

1. PepsiCo and Coca-Cola show up in the next two slots of each top-10 list, with Estee Lauder turning up lower down on two of the three lists.
2. P&G is currently developing innovative products, including the nontoxic insect repellent Zevo.
3. What’s more, the payout is less than half of SJM earnings per share, so there’s ample headroom for payouts going forward from one of Wall Street’s best consumer staples stocks.
4. As such, the companies that make these items are said to maintain reliable, steady growth regardless of the economy.
5. Consumer staple ETFs offer investors exposure to a basket of consumer staple stocks, which can provide diversification and reduce risk.

FLO pays a healthy dividend yield of 4.2% and has increased its shareholder payout annually for the last 22 years. LW pays a dividend yield of 1.1%, which equates to annual income of $1.12 per share. People love their frozen French fries, enough to keep buying despite price increases. Over the past year, LW has more than offset cost inflation through pricing actions. In the third quarter, KDP reported year-over-year adjusted sales growth of 4.1% to $3.81 billion. Colgate’s dividend yield of 2.47% produces cash income of $1.92 per share.

When it comes to the best consumer staples stocks, it’s hard to top the international powerhouse that is Coca-Cola (KO, $60.12). With a global scale and more than 120 years of operating history, Coke is among the most recognizable brands on the planet and logs consistent sales in any market environment. With roboforex broker review that in mind, here are nine of the best consumer staples stocks to buy now. All have something different to offer, and many also pay generous dividends on top of the potential for share appreciation. In an uncertain market, the best consumer staples stocks provide consistency and stability to portfolios.

You’ll want to ensure the fund invests in a diversified mix of consumer staples stocks so you’re not too exposed to any company or sector. Past performance is no guarantee of future results, but it can give you an idea of how the fund has performed in different market conditions. Consumer staples stocks tend to trade at a premium to the market, so it is important to find companies that are trading at a reasonable price. Look for companies with a low P/E ratio and a high dividend yield. The other side to this is that a company could have a high P/E ratio and still be a viable investment.

However, Altria has been through a lot in the last 30 years or so and has learned how to operate in the current environment through a focus on margins and shareholder value. For DIY investors, you can use Syfe Trade to invest in specific stocks and ETFs. From now to 31 March 2022, you get to enjoy 5 free trades and super low commissions of US$0.99 per trade thereafter.

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That consistent buying behavior creates benefits for consumer staples stocks and their investors. Among those benefits are predictable revenues and resilience in economic downturns. Combine those features with operational excellence and the best consumer staples stocks deliver slow-and-steady growth in earnings and cash flow over time. There are a few things to consider when choosing a consumer staples stock ETF. A lower expense ratio means more of your investment goes into the actual fund, so choosing an ETF with a low expense ratio is important.

Procter & Gamble (PG)

Another soft drink giant from the south, PepsiCo started in the 1890s in North Carolina. The company went broke during World War I as a result of sugar rationing, but it was later purchased—along with its famous cola recipe—by a holding company. WMT was founded in Bentonville, Ark., by Sam Walton, who was a pioneer in value retail.

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Vanguard, for example, offers VDC, a consumer staples ETF, and a Consumer Staples Index mutual fund. Invesco has PBJ, its dynamic food & beverage ETF, along with a more general S&P SmallCap Consumer Staples ETF. According to Circana data (as reported in STZ’s second quarter report), Modelo and Corona Non-Alcoholic are Top 10 Share Gainers in their categories. Meiomi Bright and Fresca Mix Vodka Spritz also earned honors as top new brands. The company’s higher-end wine portfolio also gained share in the recent quarter, growing faster than the market.

Firms that boosted promotional and advertising spending in 2023 may have an added tailwind. Meanwhile, valuations in the sector have looked compelling versus the broader market and versus sector history. Any decline in interest rates could also boost the attractiveness https://traderoom.info/ of dividend-paying stocks. Like other consumer staples companies, P&G received a healthy boost from the pandemic. Notably, the organic sales gain was driven by a mixture of higher volume, price increases, and selling more higher-priced items.

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Consumer staples stocks can operate in different segments, such as beverages, tobacco, food products or household products. They can also be manufacturers like Coca-Cola (KO) or retailers like Costco (COST). As such, stocks in this sector can be diverse in terms of margins and other financial metrics. Speaking of inflation, that has been the headlining story in consumer staples over the last two years. On the one hand, consumers keep buying essential products even as inflation pushes prices higher.

The company fosters an innovation culture and invests heavily in R&D to ideate new solutions for problems consumers face daily. The result is an ongoing flow of new products and expansions to existing product lines. An example of a product expansion is Dawn Ultra EZ Squeeze, ranked fifth on Circana’s list of the most successful nonfood product launches of 2022. Walmart (WMT) is also seeing spending pattern changes—specifically related to Ozempic and other weight-loss drugs.

In the most recent quarter, acquisitions added $375 million in incremental sales. Looking ahead, the company is working through a major manufacturing upgrade slated to complete next year. Colgate, like Mondelez, owns leading brands and earns the bulk of its sales outside the U.S. The company’s position in emerging markets is attractive, but the big story for Colgate is its evolving business strategy. Costco’s dividend yield is 0.65%, which is the lowest of the stocks on this list.