Consumer Staples: Definition, Role in GDP, and Examples

While that is twice what you would get from an S&P 500 index fund, it is only about middle of the road for Coca-Cola over the past decade or so. You can choose the best stocks at the wrong time, for example, and still see big unrealized losses in your account—at least until the market recovers. LW has a disciplined growth strategy that includes strategic acquisitions and investments in its manufacturing capacity.

1. 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.
2. You’ll want to ensure the fund invests in a diversified mix of consumer staples stocks so you’re not too exposed to any company or sector.
3. Adjusted diluted EPS grew 16.7% on a constant currency basis to $0.82.
4. Sports hydration, energy drinks and ready-to-drink coffee should be growth drivers for KDP going forward, both internationally and abroad.

Alameda, California-based Eat Just Inc., which also received regulatory approval last summer to sell cultivated chicken, stopped serving it last year and hasn’t set a date for its return. In the first fiscal quarter of 2024 ended August 27, 2023, LW’s net sales grew 48% to $1.6 billion vs. the prior-year quarter. In its second fiscal quarter ended August 31, 2023, STZ’s net sales grew 7% to $2.8 billion. For the quarter ending September 3, 2023, Costco reported a 9.4% increase in sales to $77.43 billion. Both metrics are relative to the year-ago quarter, which was one week shorter.

Recent Consumer Staples Headlines

The company is investing heavily in innovation, advertising and brand-building—a strategy that’s starting to bear fruit. Solid results in this fiscal year prompted the company to increase its full-year growth guidance, which is now 6% to 8%. In the third quarter Colgate reported net sales growth of 10.5% to $4.9 billion vs. the year-ago quarter. In the nine months ended September 30, 2023, the company repurchased $659 million of its common stock. Mondelez International makes and sells snacks and beverages to supermarkets, gas stations, drug stores, club stores and other retailers in the U.S. and abroad. Brand names include Oreo, Clif Bar, Tate’s Bake Shop, Ritz and Toblerone.

The table below introduces 10 consumer staples stocks that can add value to your portfolio in 2024. They include large- and mid-caps, listed from largest to smallest. Note that I own positions in Coca-Cola and Procter & Gamble (PG). While inflation has eaten away at some consumer staples stocks, analysts are projecting more than 10% revenue expansion this fiscal year and mid-single-digit growth in fiscal 2023. Earnings are also expected to jump 8% to 10% for both fiscal years on top of that.

#35 – Conagra Brands

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They’re also particularly resilient, thanks to low price points that position them as affordable treats. The company also repurchased $1.5 billion of common stock in the first quarter of fiscal year 2024. Consumer staples companies make or sell essential products; things like toilet paper, bread and toothpaste. These are the items you buy consistently, even if you just lost your job or the economy is faltering. No matter which consumer staple ETF you choose, be sure to do your homework before investing. Read the fund’s prospectus and research the individual stocks that make up the fund.

Flowers Foods (FLO)

The largest consumer staples companies have been in business for decades, some for even more than a century. Since they sell products that are always in demand, consumer staples stocks sustain long-term brand value—and that translates into long-term stock value for investors. Consumer staples stocks can be a good option for investors seeking steady growth, solid dividends, and low volatility. One of the benefits of buying dividend stocks in various sectors of the stock market is that dividend payments can help offset some of the decline in stock value during an economic downturn. Another benefit is that investors can benefit from the compounding effect of dividends if they invest long-term.

Consumer staples are noncyclical, meaning they offer investors safety during recessionary climates. This applies to all electronic and furniture products within Staples regularlyposted 14-day return policies. Use the table below to compare your options and find the best fit. Unilever is a consumer goods multinational headquartered in London. The company is the largest producer of soap in the world, but it also makes countless other goods, including Lipton teas and Ben & Jerry’s ice creams.

For investors who prefer to take a contrarian approach, Unilever is working on a business turnaround. The negatives here, which include the failure to consummate a high-profile acquisition, have left the shares with a historically high dividend yield of about 4.2%. What’s most interesting, however, is that activist investor Nelson Peltz – who was instrumental in turning Procter & Gamble’s business around – has been added to Unilever’s board of directors.

An added perk is its higher dividend yield than the S&P 500 Index — even during a recession. The best consumer staples companies tend to have consistently strong organic sales, leading market shares, and attractive dividend yields. Although the industry sees relatively little innovation and growth, consumer staples products tend to be timeless, and these companies are likely to continue to endure. The consumer staples sector also often lures investors with its components’ rich dividend yields, which tend to be larger than those generated in other sectors.

Coca-Cola has size, market share and a leading operating margin on its side. Add a savvy leadership team to that mix, and it’s hard to bet against this beverage maker. The company has a proven ability iq option broker review to find growth across product innovation, geographic expansion and strategic acquisitions. In the quarter ended on September 29, 2023, Coca-cola reported net revenue growth of 8% to $12 billion.

After teaching in public and private schools, Kimberly zeroed in on personal financial education to help families and kids develop lifelong money skills. She hails from New York City, graduating summa cum laude from Queens College with a BA in elementary education and mathematics, as well as a New York State teaching certificate. She’s also an https://traderoom.info/ aspiring polyglot, always in a book and forever on the hunt for the perfect classic red lipstick. Use the graph below to track how the Consumer Staples Select Sector SPDR ETF (XLP) has been performing over the past three months, year and five years. Tracking the performance of this ETF is one way to gauge how the sector as a whole is doing.

Sector Breakdown

As such, they may not appeal to investors who seek rapid growth, or who are willing to take on a higher degree of risk for higher potential returns. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Nonetheless, Estee Lauder has been a top performer, more than doubling the S&P 500’s roughly 60% return over the past five years. However, that includes a more dramatic ascent and a much steeper decline during the 2022 bear market, highlighting the volatile nature of the sector.

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