This article will help you find the best consumer staples stocks for investing in. The best stocks in the consumer staple sector are companies that produce products that are universally popular. PepsiCo is one example. Estee Lauder, Walmart and others are examples. These iconic products are not the only reason consumer staples are so stable. They also have high dividend yields.
General Mills
Consumer staple stocks have a history of outperforming other sectors. Certain companies have been more reliable than their counterparts. These companies are usually large and stable, which makes them a good option to have in your portfolio during periods of market volatility and recession. These are the top staples you should invest in. They beat analyst estimates for earnings-per-share. Here's why.
First, this stock pays an acceptable dividend. It offers almost twice the dividend yield than the S&P500 at 3.21%. This makes it an attractive investment for income investors. Second, General Mills' earnings per share (EPS) will make up the majority of your total returns. General Mills EPS has grown 6.6% per year over the past seven-years, from $1.10 per shares in 1928 to $2.08 per share in 2013. The company's latest earnings-per-share growth is at 3.7%.
Coca-Cola
The performance of consumer staples companies has been proven to be superior to their peers in the industry. Some consumer staples firms outperform other companies in any sector. Here are three companies whose earnings per share have exceeded analyst expectations. Each of these stocks has the potential to rank among the best consumer staple stocks. You can read on to find out their potential for being top performers in this category. Next, pick the one that meets your investment goals.
Coca-Cola, a staple consumer stock, is worth considering if you're looking to build a diversified portfolio. Coca-Cola, its flagship product, is the most well-known soda in the world. Powerade and Dasani water, as well as vitaminwater and Fuze tea, are all produced by the company. While the company does generate about $30 billion a year in revenue, it continues to expand its portfolio with innovative new products. Coca-Cola shares have been steadily increasing over the past year.
Walmart
Investors should look at Consumer Staples stocks in order to get a general idea of which are the most reliable companies. Walmart, a company in the Consumer Staples sector, offers a variety of products and a stable price. They have the ability to adapt to consumer tastes and preferences and make the most of these trends, making them a good choice for those looking to invest in stocks in this sector. However, it is important that investors do not overpay for these stocks.
Great Value is a brand that produces low-cost products to replace common staples. These products include paper towels, cleaning supplies, cereals, microwave dinners, and more. Walmart's Equate is a brand that sells many health care products and prescriptions. Its stock continues to be a great value, despite the company's low growth rate in recent years.
Estee Lauder
The growth of consumer staples like Estee Lauder (NYSE:EL) is good news for investors. This company manufactures and sells prestige beauty products around the world, including Aveda, Clinique, Michael Kors, Tom Ford Beauty, and many more. Clinique products comprise 25% of Macy's beauty product line. This company has extensive market penetration and international growth. It also increased its investment in Deciem Beauty Group Inc. from 29% to 76%, with plans to buy the rest in three years. Estee Lader should profit from China's growing consumer spending and global ecommerce.
A consumer staples stock will experience very little disruption. The stock will grow slowly over time but investors will be rewarded with a predictable dividend, and low volatility. Long-term investors will generally consider stocks of consumer staples as good investments. These stocks are considered "safe" as they are of high quality and have a history of high earnings growth. They are good long-term investments because they are stable.
FAQ
What are the benefits of stock ownership?
Stocks have a higher volatility than bonds. The value of shares that are bankrupted will plummet dramatically.
However, share prices will rise if a company is growing.
Companies often issue new stock to raise capital. This allows investors to purchase additional shares in the company.
Companies borrow money using debt finance. This gives them cheap credit and allows them grow faster.
When a company has a good product, then people tend to buy it. Stock prices rise with increased demand.
As long as the company continues producing products that people love, the stock price should not fall.
What is the purpose of the Securities and Exchange Commission
The SEC regulates securities exchanges, broker-dealers, investment companies, and other entities involved in the distribution of securities. It also enforces federal securities law.
How do I choose a good investment company?
It is important to find one that charges low fees, provides high-quality administration, and offers a diverse portfolio. Commonly, fees are charged depending on the security that you hold in your account. Some companies don't charge fees to hold cash, while others charge a flat annual fee regardless of the amount that you deposit. Others charge a percentage of your total assets.
You should also find out what kind of performance history they have. Companies with poor performance records might not be right for you. Avoid companies that have low net asset valuation (NAV) or high volatility NAVs.
Finally, it is important to review their investment philosophy. A company that invests in high-return investments should be open to taking risks. If they aren't willing to take risk, they may not meet your expectations.
Statistics
- 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)
- "If all of your money's in one stock, you could potentially lose 50% of it overnight," Moore says. (nerdwallet.com)
- The S&P 500 has grown about 10.5% per year since its establishment in the 1920s. (investopedia.com)
- Even if you find talent for trading stocks, allocating more than 10% of your portfolio to an individual stock can expose your savings to too much volatility. (nerdwallet.com)
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How To
How to create a trading strategy
A trading plan helps you manage your money effectively. This allows you to see how much money you have and what your goals might be.
Before you begin a trading account, you need to think about your goals. You may wish to save money, earn interest, or spend less. If you're saving money, you might decide to invest in shares or bonds. You could save some interest or purchase a home if you are earning it. You might also want to save money by going on vacation or buying yourself something nice.
Once you know your financial goals, you will need to figure out how much you can afford to start. This depends on where you live and whether you have any debts or loans. Consider how much income you have each month or week. Income is the sum of all your earnings after taxes.
Next, save enough money for your expenses. These include rent, bills, food, travel expenses, and everything else that you might need to pay. Your total monthly expenses will include all of these.
You'll also need to determine how much you still have at the end the month. This is your net available income.
You're now able to determine how to spend your money the most efficiently.
You can download one from the internet to get started with a basic trading plan. Ask someone with experience in investing for help.
For example, here's a simple spreadsheet you can open in Microsoft Excel.
This is a summary of all your income so far. This includes your current bank balance, as well an investment portfolio.
And here's another example. This one was designed by a financial planner.
It will help you calculate how much risk you can afford.
Do not try to predict the future. Instead, focus on using your money wisely today.