Here are the top consumer staple stocks you should consider investing in. Companies that produce universally-popular products are the best stocks within the consumer staple sector. PepsiCo and Procter & Gamble could be examples. There are also companies like Walmart and Estee Lauder. These iconic products are not the only reason consumer staples are so stable. They also have high dividend yields.
General Mills
Over the years, consumer staple stocks have outperformed other sectors. Certain companies have been more reliable than their counterparts. These companies are more reliable than their peers and are a good option to include in your portfolio for periods of market volatility, recession and other economic downturns. The following companies are excellent staples that you can invest in. They beat analyst estimates for earnings-per-share. Here's why.
First, it pays a decent dividend. Its dividend yield is almost double that of S&P 500's at 3.21%. This makes it attractive for income investors. The second component of your total returns will be General Mills' earnings/share (EPS). General Mills' EPS grew from $1.10 in 1928, to $3.08 per Share over the past seven decades, or 6.6% annually. The company's latest earnings-per-share growth is at 3.7%.
Coca-Cola
Companies that make consumer staples have a track record of outperforming peers in their sector. Some consumer staples firms outperform other companies in any sector. Here are three companies whose earnings per share have exceeded analyst expectations. Each stock has the potential of being one of the best consumer staple stocks right now. Continue reading to learn more about their potential as top performers within their respective categories. Decide which one best fits your investment goals.
Coca-Cola can be a great stock to start a portfolio. Coca-Cola is its flagship product and the most loved soda in the world. The company also produces Powerade, Dasani water, vitaminwater, and Fuze tea. While the company's annual revenue is $30 billion, it continues to expand its product range with innovative new products. Coca-Cola shares have been steadily increasing over the past year.
Walmart
Consumer Staples stocks can be a great way to see which companies are reliable. Consumer staples companies like Walmart offer a diversified product line and a stable stock price. These companies are able to adapt to consumers' tastes and preferences, and take advantage of trends. This makes them an attractive choice for investors looking to invest in stocks within this sector. However, investors must be careful not to overpay for these stocks.
Products are produced under the Great Value brand. This brand offers affordable alternatives to commonly used consumer staples. These products include paper towels. cleaning supplies, cereals. microwave dinners. Walmart's Equate Brand sells a variety of medicines and health care products. Its stock continues to be a great value, despite the company's low growth rate in recent years.
Estee Lauder
Investors will be pleased to see the continued growth of consumer staples such Estee Lauder's (NYSE:EL). The company produces and sells prestige products for beauty, such as Aveda and Clinique, Michael Kors and Tom Ford Beauty. In addition, 25% of Macy's beauty products are Clinique products. This company has extensive market penetration and international growth. It also increased its investments in Deciem Beauty Group Inc., from 29% up to 76%, and plans to acquire the rest within three years. Estee Lader should profit from China's growing consumer spending and global ecommerce.
Consumer staples stocks will be very stable. It will grow slightly over time but will return investors with a predictable income and low volatility. The stocks that are primarily consumed by consumers are good buys for investors who want to hold them for the long term. Financial analysts consider these stocks to be "safe" due to their proven track record of high earnings and high quality. They are good long-term investments because they are stable.
FAQ
What are the benefits of stock ownership?
Stocks are more volatile than bonds. The stock market will suffer if a company goes bust.
But, shares will increase if the company grows.
For capital raising, companies will often issue new shares. This allows investors buy more shares.
Companies can borrow money through debt finance. This gives them access to cheap credit, which enables them to grow faster.
People will purchase a product that is good if it's a quality product. The stock will become more expensive as there is more demand.
The stock price should increase as long the company produces the products people want.
Who can trade in stock markets?
The answer is yes. But not all people are equal in this world. Some people have better skills or knowledge than others. So they should be rewarded.
But other factors determine whether someone succeeds or fails in trading stocks. If you don't understand financial reports, you won’t be able take any decisions.
So you need to learn how to read these reports. Understanding the significance of each number is essential. You must also be able to correctly interpret the numbers.
This will allow you to identify trends and patterns in data. This will allow you to decide when to sell or buy shares.
You might even make some money if you are fortunate enough.
How does the stock markets work?
When you buy a share of stock, you are buying ownership rights to part of the company. A shareholder has certain rights. He/she is able to vote on major policy and resolutions. He/she can demand compensation for damages caused by the company. And he/she can sue the company for breach of contract.
A company cannot issue any more shares than its total assets, minus liabilities. It's called 'capital adequacy.'
A company that has a high capital ratio is considered safe. Companies with low capital adequacy ratios are considered risky investments.
What is the purpose of the Securities and Exchange Commission
SEC regulates brokerage-dealers, securities exchanges, investment firms, and any other entities involved with the distribution of securities. It also enforces federal securities law.
What is a REIT?
A real-estate investment trust (REIT), a company that owns income-producing assets such as shopping centers, office buildings and hotels, industrial parks, and other buildings is called a REIT. These publicly traded companies pay dividends rather than paying corporate taxes.
They are similar companies, but they own only property and do not manufacture goods.
How Does Inflation Affect the Stock Market?
Inflation has an impact on the stock market as investors have to spend less dollars each year in order to purchase goods and services. As prices rise, stocks fall. Stocks fall as a result.
What is the difference of a broker versus a financial adviser?
Brokers specialize in helping people and businesses sell and buy stocks and other securities. They handle all paperwork.
Financial advisors can help you make informed decisions about your personal finances. Financial advisors use their knowledge to help clients plan and prepare for financial emergencies and reach their financial goals.
Banks, insurance companies or other institutions might employ financial advisors. They can also be independent, working as fee-only professionals.
Take classes in accounting, marketing, and finance if you're looking to get a job in the financial industry. Additionally, you will need to be familiar with the different types and investment options available.
Statistics
- US resident who opens a new IBKR Pro individual or joint account receives a 0.25% rate reduction on margin loans. (nerdwallet.com)
- "If all of your money's in one stock, you could potentially lose 50% of it overnight," Moore says. (nerdwallet.com)
- Our focus on Main Street investors reflects the fact that American households own $38 trillion worth of equities, more than 59 percent of the U.S. equity market either directly or indirectly through mutual funds, retirement accounts, and other investments. (sec.gov)
- The S&P 500 has grown about 10.5% per year since its establishment in the 1920s. (investopedia.com)
External Links
How To
How to Trade in Stock Market
Stock trading is a process of buying and selling stocks, bonds, commodities, currencies, derivatives, etc. Trading is French for "trading", which means someone who buys or sells. Traders trade securities to make money. They do this by buying and selling them. It is one of oldest forms of financial investing.
There are many ways you can invest in the stock exchange. There are three basic types of investing: passive, active, and hybrid. Passive investors watch their investments grow, while actively traded investors look for winning companies to make a profit. Hybrid investors combine both of these approaches.
Passive investing is done through index funds that track broad indices like the S&P 500 or Dow Jones Industrial Average, etc. This approach is very popular because it allows you to reap the benefits of diversification without having to deal directly with the risk involved. You can just relax and let your investments do the work.
Active investing involves picking specific companies and analyzing their performance. Active investors will look at things such as earnings growth, return on equity, debt ratios, P/E ratio, cash flow, book value, dividend payout, management team, share price history, etc. Then they decide whether to purchase shares in the company or not. If they feel the company is undervalued they will purchase shares in the hope that the price rises. If they feel the company is undervalued, they'll wait for the price to drop before buying stock.
Hybrid investing blends elements of both active and passive investing. One example is that you may want to select a fund which tracks many stocks, but you also want the option to choose from several companies. You would then put a portion of your portfolio in a passively managed fund, and another part in a group of actively managed funds.