Consumer staples stocks are the stocks of the companies that produce goods that are essential for basic living. Such companies, products, and their stocks are always in demand and not impacted by the economic environment. They do well even in recessionary times.
The consumer staples sector includes stocks of companies in the business of food, beverages, alcohol, tobacco, personal products, meat products, consumer products, discount stores, and houseware. Together, they have a market capitalization of over $3 trillion.
|COST||Costco Wholesale Corporation||$605.35||23.88%||268.0B|
|DG||Dollar General Corporation||$133.39||-45.76%||29.3B|
|JNJ||Johnson & Johnson||$158.55||-11.32%||381.7B|
|PG||The Procter & Gamble Company||$146.76||-1.56%||345.9B|
|EL||The Estee Lauder Companies Inc.||$132.17||-42.90%||47.3B|
|ENR||Energizer Holdings, Inc.||$30.74||-11.82%||2.2B|
|KO||The Coca-Cola Company||$58.66||-7.58%||253.6B|
|CPB||Campbell Soup Company||$40.37||-24.26%||12.0B|
|GIS||General Mills, Inc.||$64.52||-25.24%||37.5B|
|MKC||McCormick & Company, Incorporated||$66.65||-20.70%||17.9B|
|HSY||The Hershey Company||$187.93||-19.43%||38.4B|
|MDLZ||Mondelez International, Inc.||$70.68||4.82%||96.2B|
|BUD||Anheuser-Busch InBev SA/NV||$63.17||6.26%||110.3B|
|STZ||Constellation Brands, Inc.||$236.66||-7.14%||43.5B|
|MO||Altria Group, Inc.||$42.57||-9.79%||75.3B|
|PM||Philip Morris International Inc.||$92.54||-10.57%||143.7B|
|BTI||British American Tobacco p.l.c.||$31.54||-25.53%||70.8B|
|UL||The Unilever Group||$47.74||-6.37%||120.2B|
|HLF||Herbalife Nutrition Ltd.||$13.00||-25.76%||1.3B|
|NUS||Nu Skin Enterprises, Inc.||$17.19||-58.70%||849.3M|
|SPB||Spectrum Brands Holdings, Inc.||$71.38||14.78%||2.5B|
|IPAR||Inter Parfums, Inc.||$131.53||32.99%||4.2B|
|EPC||Edgewell Personal Care Company||$34.16||-18.06%||1.7B|
|TSN||Tyson Foods, Inc.||$49.94||-22.90%||17.7B|
|HRL||Hormel Foods Corporation||$31.34||-33.59%||17.1B|
|KDP||Keurig Dr Pepper Inc||$32.03||-15.62%||44.8B|
|MNST||Monster Beverage Corporation||$54.26||6.20%||56.5B|
|KHC||The Kraft Heinz Company||$35.84||-9.54%||44.0B|
|LW||Lamb Weston Holdings, Inc.||$100.62||14.76%||14.6B|
|POST||Post Holdings, Inc.||$87.41||-7.75%||5.3B|
|PPC||Pilgrim's Pride Corporation||$26.52||5.20%||6.3B|
|LANC||Lancaster Colony Corporation||$169.23||-16.95%||4.7B|
|SAFM||Sanderson Farms, Inc.||#N/A||#N/A||#N/A|
|SMPL||The Simply Good Foods Company||$40.03||3.44%||4.0B|
|CALM||Cal-Maine Foods, Inc.||$49.72||-15.66%||2.4B|
|CLX||The Clorox Company||$141.44||-5.09%||17.5B|
|NWL||Newell Brands Inc||$8.00||-36.46%||3.3B|
|CHD||Church and Dwight Co, Inc||$93.49||16.30%||23.0B|
Examples of Consumer Staples Stocks
Consumer staples stocks are considered to be some of the most stable and reliable investments in the stock market. These companies produce and sell everyday necessities such as food, household goods, and personal care products, which are often considered to be recession-proof and in high demand regardless of economic conditions.
Below are some examples of Consumer Staples stocks and brief overviews of how the companies operate.
- Procter & Gamble (PG) – Procter & Gamble is a household name and produces a wide range of consumer goods, including household cleaning products, personal care items, and over-the-counter medications. It has a strong track record of dividend payments and has consistently grown its earnings per share in recent years.
- Coca-Cola (KO) – Coca-Cola is one of the world’s largest beverage manufacturers, with a portfolio that includes iconic brands such as Coca-Cola, Sprite, and Fanta. It has a strong brand and a diversified product portfolio, making it a solid choice for investors looking for a stable and reliable stock.
- PepsiCo (PEP) – PepsiCo is a major competitor to Coca-Cola in the beverage industry, with a portfolio that includes popular brands such as Pepsi, Gatorade, and Tropicana. It also has a strong snack foods division, including Fritos, Cheetos and Lay’s. In addition, it has a strong track record of dividend payments and has consistently grown its earnings per share in recent years.
- Nestle (NSRGF) – Nestle is a global leader in the food and beverage industry, with a portfolio that includes popular brands such as Nestle, Gerber, and Nescafe. It has a strong track record of dividend payments and has consistently grown its earnings per share in recent years.
- Unilever (UL) – Unilever is a global leader in the consumer goods industry, with a portfolio that includes popular brands such as Dove, Lipton, and Hellmann’s. It has a strong track record of dividend payments and has consistently grown its earnings per share in recent years.
It’s important to note that past performance does not guarantee future results, and investors should conduct their own research and consult with a financial advisor before making any investment decisions. However, these consumer staples stocks have proven to be reliable and stable investments in the past and are likely to continue to be so in the future.
About the Consumer Staples Industry
The Consumer Staples industry is made up of companies that produce and sell everyday necessities such as food, household goods, and personal care products. These products are considered to be non-cyclical, meaning that they are in high demand regardless of economic conditions. As a result, the Consumer Staples industry is often considered to be one of the most stable and defensive industries in the stock market.
Some of the key characteristics of the Consumer Staples industry include:
- Strong Brand Recognition: Many Consumer Staples companies have strong brand recognition and a loyal customer base. This helps to insulate them from economic downturns and makes them less susceptible to competition.
- Recession-Proof: Because the products that Consumer Staples companies produce are considered to be necessities, demand for them tends to be relatively stable regardless of economic conditions. This makes the industry less susceptible to recessions and economic downturns.
- Dividend Payments: Many Consumer Staples companies have a history of paying dividends to their shareholders. This can make them an attractive investment option for those looking for a steady stream of income.
- Slow but steady growth: Consumer staples companies’ growth is often slow but steady. They often rely on population growth, inflation, and increase in disposable income of their target demographic.
- High Barriers to entry: The Consumer Staples industry is often dominated by a small number of large companies, and the barriers to entry are high. This is because it requires significant investments in research and development, marketing, and distribution networks to build a successful brand.
Some of the major players in the Consumer Staples industry include Procter & Gamble, Coca-Cola, PepsiCo, Nestle, and Unilever. These companies have a diverse product portfolio and a strong track record of performance, making them some of the most well-known and respected companies in the industry.
It’s important to note that the Consumer staples industry is not immune to market fluctuations and the performance of the industry can be affected by external factors such as currency fluctuations, commodity price changes, and global geopolitical events.
Factors to Consider Before Investing in Consumer Staples Stocks
Consumer staples stocks are ideal investments for conservative investors as they are low-risk. They do not generate spectacular returns; however, the returns are steady and stable.
Investors must consider that consumer staples stocks are suitable for the short-term. They generate a steady dividend yield due to their stability and should form a big chunk of the investment portfolio, especially in times of economic downturn.
However, investors must also consider the trade-off and risks. During the times of economic boom, consumer staples stocks generate lower returns than the other dynamic stocks like technology stocks. Therefore, consumer staples stocks may not be a suitable avenue of investment for aggressive investors.
Which Consumer Staples Stocks Should I Buy?
A large number of consumer staples stocks trade on the stock exchanges. Among them, we have compiled a list of the best consumer staples stocks for you to choose from.
Investors should ensure that consumer staples stocks belong to stable and established companies in the recession-proof sector. The products must be used on a daily or weekly basis, and should not be discretionary.
The best consumer staples stocks deliver strong revenues and earnings growth and are known for generous and steadily increasing dividends. Investors should pick consumer staples stocks with stable organic sales, market share, profit margins, and cash returns.