The best consumer staples stocks are the ones you want to invest in. Companies that produce popular products are the best stocks for the consumer staples sector. PepsiCo, Procter & Gamble are two examples. Estee Lauder is another company. 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. Some companies are more reliable that their peers. These companies are more reliable than their peers and are a good option to include in your portfolio for periods of market volatility, recession and other economic downturns. The following companies are good staples. They also beat analysts' earnings per share estimates. 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. It's an attractive stock for income investors. General Mills will also contribute to your total returns by delivering earnings-per 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 most recent earnings-per-share growth rate is 3.7%.
Coca-Cola
Companies that make consumer staples have a track record of outperforming peers in their sector. In fact, many consumer staples companies perform better than their peers across all sectors. These are the three companies that have exceeded analysts' expectations for earnings per shares. Each of them has potential to be among the best consumer staple stocks to buy right now. You can read on to find out their potential for being top performers in this category. Then choose which one meets your investment objectives.
If you are looking to diversify your portfolio, Coca-Cola is an excellent stock to invest in. Coca-Cola is the world's best-selling soda. The company also produces Powerade, Dasani water, vitaminwater, and Fuze tea. 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
Consumer Staples stocks are a good place to start a search for reliable companies. Consumer staples companies like Walmart offer a diversified product line and a stable stock price. These companies have the ability to adapt and profit from consumer trends and are therefore a good option for those who want to invest in stocks of this sector. These stocks should be purchased with caution.
Products are produced under the Great Value brand. This brand offers affordable alternatives to commonly used consumer staples. These products include paper towels as well cleaning supplies, cereals, baking supplies, and microwave dinners. Walmart's Equate is a brand that sells many health care products and prescriptions. Despite its low growth rate, the stock is still a great value.
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 account for 25% of Macy's beauty items. This company is well known for its market penetration and international expansion. It increased its investment in Deciem Beauty Group Inc. by 29% to 76% and plans to purchase the remainder in three years. As the growth of consumer spending in China continues and global e-commerce grows, Estee Lauder should benefit.
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. The stocks that are primarily consumed by consumers are good buys for investors who want to hold them for the long term. Financial analysts consider these stocks to be "safe" due to their proven track record of high earnings and high quality. Aside from being stable, they are also a good choice for long-term investors.
FAQ
What is the main difference between the stock exchange and the securities marketplace?
The securities market is the whole group of companies that are listed on any exchange for trading shares. This includes stocks, options, futures, and other financial instruments. Stock markets are generally divided into two main categories: primary market and secondary. Stock markets are divided into two categories: primary and secondary. Secondary stock markets let investors trade privately and are smaller than the NYSE (New York Stock Exchange). These include OTC Bulletin Board Over-the-Counter (Pink Sheets) and Nasdaq ShortCap Market.
Stock markets have a lot of importance because they offer a place for people to buy and trade shares of businesses. It is the share price that determines their value. A company issues new shares to the public whenever it goes public. Dividends are received by investors who purchase newly issued shares. Dividends can be described as payments made by corporations to shareholders.
In addition to providing a place for buyers and sellers, stock markets also serve as a tool for corporate governance. Boards of Directors are elected by shareholders and oversee management. They ensure managers adhere to ethical business practices. If a board fails to perform this function, the government may step in and replace the board.
What is a mutual fund?
Mutual funds consist of pools of money investing in securities. They allow diversification to ensure that all types are represented in the pool. This reduces risk.
Professional managers manage mutual funds and make investment decisions. Some funds offer investors the ability to manage their own portfolios.
Mutual funds are often preferred over individual stocks as they are easier to comprehend and less risky.
What is a bond and how do you define it?
A bond agreement is a contract between two parties that allows money to be transferred for goods or services. It is also known as a contract.
A bond is typically written on paper and signed between the parties. This document includes details like the date, amount due, interest rate, and so on.
The bond can be used when there are risks, such if a company fails or someone violates a promise.
Bonds can often be combined with other loans such as mortgages. This means the borrower must repay the loan as well as any interest.
Bonds can also help raise money for major projects, such as the construction of roads and bridges or hospitals.
A bond becomes due upon maturity. This means that the bond's owner will be paid the principal and any interest.
If a bond does not get paid back, then the lender loses its money.
What is the difference between a broker and a financial advisor?
Brokers specialize in helping people and businesses sell and buy stocks and other securities. They take care of all the paperwork involved in the transaction.
Financial advisors have a wealth of knowledge in the area of personal finances. They use their expertise to help clients plan for retirement, prepare for emergencies, and achieve financial goals.
Banks, insurance companies or other institutions might employ financial advisors. You can also find them working independently as professionals who charge a fee.
It is a good idea to take courses in marketing, accounting and finance if your goal is to make a career out of the financial services industry. Also, it is important to understand about the different types available in investment.
What is a REIT?
A real estate investment Trust (REIT), or real estate trust, is an entity which owns income-producing property such as office buildings, shopping centres, offices buildings, hotels and industrial parks. They are publicly traded companies that pay dividends to shareholders instead of paying corporate taxes.
They are very similar to corporations, except they own property and not produce goods.
Statistics
- Ratchet down that 10% if you don't yet have a healthy emergency fund and 10% to 15% of your income funneled into a retirement savings account. (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)
- 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)
External Links
How To
How to open a trading account
First, open a brokerage account. There are many brokers that provide different services. There are many brokers that charge fees and others that don't. Etrade is the most well-known brokerage.
After you have opened an account, choose the type of account that you wish to open. Choose one of the following options:
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Individual Retirement Accounts (IRAs)
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Roth Individual Retirement Accounts
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401(k)s
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403(b)s
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SIMPLE IRAs
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SEP IRAs
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SIMPLE 401 (k)s
Each option has its own benefits. IRA accounts have tax benefits but require more paperwork. Roth IRAs give investors the ability to deduct contributions from taxable income, but they cannot be used for withdrawals. SIMPLE IRAs and SEP IRAs can both be funded using employer matching money. SIMPLE IRAs have a simple setup and are easy to maintain. These IRAs allow employees to make pre-tax contributions and employers can match them.
Finally, determine how much capital you would like to invest. This is also known as your first deposit. Most brokers will offer you a range deposit options based on your return expectations. Based on your desired return, you could receive between $5,000 and $10,000. The lower end represents a conservative approach while the higher end represents a risky strategy.
Once you have decided on the type account you want, it is time to decide how much you want to invest. You must invest a minimum amount with each broker. These minimums vary between brokers, so check with each one to determine their minimums.
After deciding the type of account and the amount of money you want to invest, you must select a broker. Before selecting a brokerage, you need to consider the following.
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Fees - Make sure that the fee structure is transparent and reasonable. Brokers will often offer rebates or free trades to cover up fees. Some brokers will increase their fees once you have made your first trade. Do not fall for any broker who promises extra fees.
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Customer service – Look for customer service representatives that are knowledgeable about the products they sell and can answer your questions quickly.
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Security - Make sure you choose a broker that offers security features such multi-signature technology, two-factor authentication, and other.
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Mobile apps: Check to see whether the broker offers mobile applications that allow you access your portfolio via your smartphone.
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Social media presence. Find out whether the broker has a strong social media presence. If they don’t, it may be time to move.
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Technology - Does the broker utilize cutting-edge technology Is the trading platform intuitive? Are there any problems with the trading platform?
Once you have decided on a broker, it is time to open an account. While some brokers offer free trial, others will charge a small fee. After signing up you will need confirmation of your email address. Next, you will be asked for personal information like your name, birth date, and social security number. Finally, you'll have to verify your identity by providing proof of identification.
Once you're verified, you'll begin receiving emails from your new brokerage firm. These emails contain important information and you should read them carefully. This will include information such as which assets can be bought and sold, what types of transactions are available and the associated fees. Also, keep track of any special promotions that your broker sends out. These could include referral bonuses, contests, or even free trades!
Next is opening an online account. Opening an online account is usually done through a third-party website like TradeStation or Interactive Brokers. Both websites are great resources for beginners. When you open an account, you will usually need to provide your full address, telephone number, email address, as well as other information. Once you have submitted all the information, you will be issued an activation key. You can use this code to log on to your account, and complete the process.
After opening an account, it's time to invest!