S&P 500 Consumer Staples Sector Charts, Components, Prices

When people have a little extra cash, they indulge in offerings from these companies. 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. Consumer Staples ETF doesn’t include retailers, but the other two ETFs have giants such as Walmart (WMT 0.37%) and Costco (COST -0.01%) making the cut. Consumer staples are noncyclical, meaning they offer investors safety during recessionary climates.

The company is riding 18 years of consecutive dividend increases, and has paid dividends in some form since 1925. That provides a solid yield on top of tremendously consistent share performance, which is why K is on this list of the best consumer staples stocks. Consumers looking for a tobacco fix will cut back many other discretionary items before they give up on Altria products.

The stocks included in the list are set to outperform the market over the next 12 months. For the full year 2023, the company has projected revenue of $2.03 billion to $2.18 billion, which takes into account an anticipated 1% to 2% unfavorable impact from foreign currency. In terms of earnings per share, the company is expecting a range of $2.27 to $2.67.

Best Consumer Staples Stocks of September 2023

This stable consistency makes consumer staples stocks an attractive option for investors who are looking for reliable returns over the long term. As a result, consumer staples stocks are considered defensive investments that can help balance a portfolio and provide a source of stability and income. When you talk about consumer staple stocks, you refer to the consumer staples sector, which groups all the consumer staple stocks. The prices of consumer staples stocks can rise even during an economic downturn as they are regarded by some as safe investments for people to park their cash into. Many companies in the consumer staples sector also offer higher dividend yields than other sectors, with an average yield of around 2%. The S&P 500 tracks companies that offer yields as high as 5%, but these are diversified across a wide range of industries that can contract sharply during a recession and are therefore riskier.

Nu Skin’s anti-aging and skin-related products include peels, masks, scrubs; moisturizers; body care, hair care, men’s care, oral care, sun protection, and cosmetics. Moreover, the company sells its product directly to consumers through its own sales channel and has a sizable market overseas. Balchem Corporation is a publicly traded specialty chemicals firm. Human nutrition and health, animal https://investmentsanalysis.info/ nutrition and health, specialty products, and industrial products are its four business segments through which it conducts its operations. Agriculture, the food and beverage industry, pharmaceuticals, and other sectors all use the company’s products. Management noted it is making progress in its operational improvement plans, and that the current economic environment for consumers is tough.

Research Consumer Staples at Fidelity

Moreover, growing online sales dilutes the power of well-known consumer staples brands. And, with iconic global brands such as Dove, Ben & Jerry’s, Knorr, and Hellmann’s, the company has a strong brand portfolio to lean on as it works to improve its growth profile. Long-term investors can happily collect the generous yield while waiting for Unilever’s business performance to improve. The company’s recent growth has been driven in large part by its success in the Chinese market, where its skin care products have performed particularly well. The cosmetics subsector tends to be more volatile than other parts of the consumer staples industry.

The service also includes the Focus List, which is a long-term portfolio of top stocks that boast a winning, market-beating combination of growth and momentum qualities. On May 3rd, 2023, Nu Skin announced Q results, reporting quarterly earnings of $0.37, beating market estimates by $0.04. In addition, the company reported revenues of $481.46 million for the quarter, down 20.4% year-over-year. Despite the persisting macro problems, Q1’s performance aligned with management’s forecasts and anticipate gradual improvements throughout the year. This tool becomes even more potent when combined with a solid, fundamental knowledge of how to manipulate data with Microsoft Excel. Quantitative investing screeners allow investors to remove many of the cognitive biases that impair long-term investing returns.

Consumer Staples Stocks, Explained

The company is also one of the biggest shareholders of L’Oreal, another company on our list. PG is one of the biggest employers in Cincinnati, Ohio, where it has its headquarters. With an annual marketing budget of $11.5 billion, it also holds the title of the world’s largest advertiser. Walmart is the world’s largest retailer, the world’s largest company by revenue and the largest employer, with over 2.2 million employees as of 2020.

Further, consumer staples are important for portfolio diversification. Also, because these stocks tend to perform in a way counter to the consumer discretionary sector in market recessions, they can help bring balance to a portfolio. In 2023, SJM joined the list of Dividend Aristocrats, stocks that have provided at least 25 consecutive years of growth in their distributions. 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. Consumer staples are products people need to buy regardless of economic conditions, making the sector relatively stable. Additionally, companies producing these products often have established brand names and loyal customer bases, protecting against the competition.

Are consumer staples stocks right for you?

Shares have increased 50.84% to $154.51 since then, and the company is a #3 (Hold) on the Zacks Rank. Investors also need to look at what a company will earn down the road. Click here to instantly download your free spreadsheet of all Consumer Staples Stocks now, along with important investing metrics. Prior to joining Sure Dividend, Bob was an independent equity analyst. His articles have been published on major financial websites such as The Motley Fool, Seeking Alpha, Business Insider and more.

• Thomas Hughes and Don Miller analyze Powell’s hawkish comments on rate hikes and inflation risks, shedding light on what lies ahead for investors.
• Food stocks within the consumer staples sector are an excellent example of this.
• For other static pages (such as the Russell 3000 Components list) all rows will be downloaded.
• These are the consumer staples stocks that had the highest total return over the past 12 months.
• The following three consumer staples stocks have increased their dividends for over 50 years, have yields above 3%, and should continue to raise dividends each year.
• The best consumer staples companies tend to have consistently strong organic sales, leading market shares, and attractive dividend yields.

Thanks in part to this strong performance, Kellogg has risen about 6% in the last year, while the S&P 500 has declined around 9% in the same period. You might still have a few questions about this vital stock market sector, beyond “What is consumer staples? We’ve put together this FAQ section to help answer any lingering questions. Whether you’re a seasoned investor or just starting, this section will provide some clarity and guidance on this critical aspect of the stock market.

The company operates 800 stores worldwide, though stores exist in fewer than 20 countries and almost 70% of its stores are located in the U.S. PEP has owned a number of other brands, many of which it sold off in the 1990s, such as restaurant chains Pizza Hut, Taco Bell and KFC, plus the U.S. rights to Russian distiller Stolichnaya. Today, it still owns several snack and beverage brands, including Gatorade, Lay’s, Doritos, Cheetos, Mountain Dew and Quaker Foods. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

The “best” stock for you will vary depending on whether your top priority is downside protection, dividend income or long-term value creation. As stocks rise in price, dividend yields will fall if the size of the dividend does not increase as well. Conversely, if stocks fall in price and if the dividend payout does not change, then the dividend yield increases. The consumer staples sector is an intriguing place to looks for high-quality dividend investment ideas.

Many trading systems utilize moving averages as independent variables and market analysts frequently use moving averages to confirm technical breakouts. Since being spun off, Philip Morris has grown its market cap to be higher than Altria’s, making it one of the biggest sin stocks in the world. A multinational, member-only big box chain, Costco is the fifth largest retailer in the world, according to the National Retail Foundation.

That’s why consumer staples tend to do well even when the rest of the market is in a slump. Eggs, milk, soda, bath soap, laundry detergent, socks, underwear, pet food, diapers, money management forex toilet paper, cigarettes, ibuprofen and cough medicine are all consumer staples products. E.l.f produces primarily value-priced, clean, cruelty-free beauty products.