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, Procter & Gamble are two examples. Companies like Estee Lauder and Walmart are just a few examples. In addition to their iconic products, consumer staples are generally more stable and have high dividend yields.
General Mills
Consumer staple stocks have a track record of outperforming all other sectors. Some companies are more reliable than others. These companies are often large and stable and can be a great option for your portfolio in times of market volatility or recession. The following companies are good staples. They've also beaten analysts' estimates for earnings per share. Here's why.
First, the stock pays a decent amount of dividends. At 3.21%, it's almost double the dividend yield of the S&P 500. This makes it a desirable stock for income investors. The second component of your total returns will be General Mills' earnings/share (EPS). 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
Consumer staples companies have a strong track record of outperforming industry peers. Some consumer staples companies actually outperform peers in any industry. These three companies have exceeded analyst expectations regarding earnings per share. Each of these stocks has the potential to rank among the best consumer staple stocks. Find out how they can be top performers in each category. Next, choose the one that best suits your investment goals.
Coca-Cola makes a great staple stock that you can consider if your goal is to create a diverse portfolio. Coca-Cola is the world's best-selling soda. Powerade, Dasani water and vitaminwater are also 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 are on the rise over the past 12 months.
Walmart
To get an idea of the best companies to invest in, investors should consider Consumer Staples stocks. Consumer staples companies like Walmart offer a diversified product line and a stable stock price. They can adapt to consumer tastes and preferences. This makes them a solid choice for people looking to invest. However, it is important that investors do not overpay for these stocks.
The company manufactures products under the Great Value label, which provides low-cost alternatives for common consumer staples. These products include paper towels, cleaning supplies, cereals, microwave dinners, and more. Walmart's Equate brand has a large selection of products and medication for people who care about their health. Despite its recent slow growth, the stock continues to be an excellent value.
Estee Lauder
Investors are encouraged by the rise of consumer staples like Estee Lauder. This company sells high-end beauty products all over the globe, including Aveda's Clinique, Michael Kors, Tom Ford Beauty, Tom Ford Beauty, and others. Clinique products are also 25% of Macy's makeup products. This company is well known for its market penetration and international expansion. 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.
Stocks of consumer staples will not be affected by major changes. It will grow modestly over time, but will reward investors with a predictable dividend and low volatility. Consumer staples stocks are generally good buys for long-term investors. These stocks are considered "safe" as they are of high quality and have a history of high earnings growth. These stocks are stable and a good option for long-term investors.
FAQ
How can people lose their money in the stock exchange?
The stock market does not allow you to make money by selling high or buying low. It is a place where you can make money by selling high and buying low.
Stock market is a place for those who are willing and able to take risks. They may buy stocks at lower prices than they actually are and sell them at higher levels.
They believe they will gain from the market's volatility. They might lose everything if they don’t pay attention.
What is an 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 to corporations, except that they don't own goods or property.
What are some advantages of owning stocks?
Stocks are more volatile than bonds. Stocks will lose a lot of value if a company goes bankrupt.
But, shares will increase if the company grows.
To raise capital, companies often issue new shares. This allows investors to buy more shares in the company.
To borrow money, companies can use 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 price rises as the demand for it increases.
As long as the company continues producing products that people love, the stock price should not fall.
Why are marketable Securities Important?
An investment company's main goal is to generate income through investments. It does this through investing its assets in various financial instruments such bonds, stocks, and other securities. These securities have attractive characteristics that investors will find appealing. They may be safe because they are backed with the full faith of the issuer.
What security is considered "marketable" is the most important characteristic. This refers primarily to whether the security can be traded on a stock exchange. A broker charges a commission to purchase securities that are not marketable. Securities cannot be purchased and sold free of charge.
Marketable securities include government and corporate bonds, preferred stocks, common stocks, convertible debentures, unit trusts, real estate investment trusts, money market funds, and exchange-traded funds.
These securities can be invested by investment firms because they are more profitable than those that they invest in equities or shares.
Statistics
- "If all of your money's in one stock, you could potentially lose 50% of it overnight," Moore says. (nerdwallet.com)
- For instance, an individual or entity that owns 100,000 shares of a company with one million outstanding shares would have a 10% ownership stake. (investopedia.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)
- Individuals with very limited financial experience are either terrified by horror stories of average investors losing 50% of their portfolio value or are beguiled by "hot tips" that bear the promise of huge rewards but seldom pay off. (investopedia.com)
External Links
How To
How to Invest Online in Stock Market
One way to make money is by investing in stocks. There are many options for investing in stocks, such as mutual funds, exchange traded funds (ETFs), and hedge funds. The best investment strategy depends on your investment goals, risk tolerance, personal investment style, overall market knowledge, and financial goals.
To be successful in the stock markets, you have to first understand how it works. This involves understanding the various types of investments, their risks, and the potential rewards. Once you are clear about what you want, you can then start to determine which type of investment is best for you.
There are three types of investments available: equity, fixed-income, and options. Equity is the ownership of shares in companies. Fixed income refers to debt instruments such as bonds and treasury notes. Alternatives are commodities, real estate, private capital, and venture capital. Each category has its own pros and cons, so it's up to you to decide which one is right for you.
Once you figure out what kind of investment you want, there are two broad strategies you can use. The first is "buy and keep." This means that you buy a certain amount of security and then you hold it for a set period of time. The second strategy is "diversification". Diversification means buying securities from different classes. By buying 10% of Apple, Microsoft, or General Motors you could diversify into different industries. Multiplying your investments will give you more exposure to many sectors of the economy. It helps protect against losses in one sector because you still own something else in another sector.
Risk management is another important factor in choosing an investment. Risk management will allow you to manage volatility in the portfolio. A low-risk fund would be the best option for you if you only want to take on a 1 percent risk. On the other hand, if you were willing to accept a 5% risk, you could choose a higher-risk fund.
Your money management skills are the last step to becoming a successful investment investor. Managing your money means having a plan for where you want to go financially in the future. A plan should address your short-term and medium-term goals. It also needs to include retirement planning. Then you need to stick to that plan! Don't get distracted by day-to-day fluctuations in the market. Stick to your plan and watch your wealth grow.