If you're looking for the best consumer staples stocks to invest in, you've come to the right place. The best stocks in the consumer staple sector are companies that produce products that are universally popular. Some examples include PepsiCo and Procter & Gamble. Estee Lauder is another company. In addition to the iconic products they produce, staples for consumers are generally more stable than other products and offer high dividend yields.
General Mills
Over the years, consumer staple stocks have outperformed other sectors. Some companies have proven themselves to be more reliable than their peers. These companies are generally large and stable which makes them an excellent option to keep in your portfolio when markets fluctuate or fall. These are the top staples you should invest in. They've also beaten analysts' estimates for earnings per share. Here's why.
First, it pays a decent dividend. Its dividend yield is almost double that of S&P 500's at 3.21%. This makes it an attractive stock for income investors. Second, General Mills' earnings-per-share (EPS) will be the main component of your total returns. 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. Some consumer staples companies have a better track record than their peers in any other sector. These three companies have exceeded analyst expectations regarding earnings per share. Each company has the potential for being among the top consumer staple stocks you can buy right now. You can read on to find out their potential for being top performers in this category. Next, choose the one that best suits your investment goals.
Coca-Cola is a great consumer staple stock to consider if you want to build a diversified portfolio. Coca-Cola, its flagship product, is the most well-known soda in the world. Powerade and Dasani water, as well as vitaminwater and Fuze tea, are all produced by the company. The company generates about $30 billion in annual revenue. However, the company continues to grow its product portfolio with new innovative products. Coca-Cola shares have been steadily increasing over the past year.
Walmart
Consumer Staples stocks should be looked at by investors to get a better idea of the most reliable companies. Walmart is a consumer staples company that offers a diverse product line and stable stock prices. 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.
The company manufactures products under the Great Value label, which provides low-cost alternatives for common consumer staples. These products include paper towels and cleaning supplies, as well as cereals and microwave meals. 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 makes and sells prestige beauty products worldwide, including Aveda. Clinique. Michael Kors. Tom Ford Beauty. Clinique products make up 25% of Macy's beauty 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 Lauder should reap the benefits of China's continued growth in consumer spending and growing global e-commerce.
A stock in consumer staples will experience little disruption. The stock will experience modest growth over time, but investors will reap the benefits of a predictable dividend and low volatility. Consumer staples stocks are generally good buys for long-term investors. These stocks are considered safe by financial analysts due to their high quality and proven track record for high earnings growth. They are good long-term investments because they are stable.
FAQ
What is a fund mutual?
Mutual funds are pools of money invested in securities. They allow diversification to ensure that all types are represented in the pool. This helps reduce risk.
Professional managers oversee the investment decisions of mutual funds. Some funds permit investors to manage the portfolios they own.
Most people choose mutual funds over individual stocks because they are easier to understand and less risky.
What is security in the stock exchange?
Security is an asset which generates income for its owners. Most common security type is shares in companies.
There are many types of securities that a company can issue, such as common stocks, preferred stocks and bonds.
The earnings per share (EPS), as well as the dividends that the company pays, determine the share's value.
When you buy a share, you own part of the business and have a claim on future profits. If the company pays a payout, you get money from them.
Your shares may be sold at anytime.
Are stocks a marketable security?
Stock is an investment vehicle where you can buy shares of companies to make money. This is done through a brokerage that sells stocks and bonds.
You could also invest directly in individual stocks or even mutual funds. There are over 50,000 mutual funds options.
These two approaches are different in that you make money differently. With direct investment, you earn income from dividends paid by the company, while with stock trading, you actually trade stocks or bonds in order to profit.
Both cases mean that you are buying ownership of a company or business. If you buy a part of a business, you become a shareholder. You receive dividends depending on the company's earnings.
Stock trading offers two options: you can short-sell (borrow) shares of stock to try and get a lower price or you can stay long-term with the shares in hopes that the value will increase.
There are three types of stock trades: call, put, and exchange-traded funds. Call and put options let you buy or sell any stock at a predetermined price and within a prescribed time. ETFs, which track a collection of stocks, are very similar to mutual funds.
Stock trading is very popular since it allows investors participate in the growth and management of companies without having to manage their day-today operations.
Stock trading is a complex business that requires planning and a lot of research. However, the rewards can be great if you do it right. It is important to have a solid understanding of economics, finance, and accounting before you can pursue this career.
How are shares prices determined?
Investors are seeking a return of their investment and set the share prices. They want to make a profit from the company. They buy shares at a fixed price. Investors make more profit if the share price rises. The investor loses money if the share prices fall.
An investor's primary goal is to make money. This is why they invest into companies. It helps them to earn lots of money.
What are the benefits of investing in a mutual fund?
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Low cost - Buying shares directly from a company can be expensive. A mutual fund can be cheaper than buying shares directly.
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Diversification is a feature of most mutual funds that includes a variety securities. When one type of security loses value, the others will rise.
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Management by professionals - professional managers ensure that the fund is only investing in securities that meet its objectives.
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Liquidity – mutual funds provide instant access to cash. You can withdraw the money whenever and wherever you want.
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Tax efficiency- Mutual funds can be tax efficient. So, your capital gains and losses are not a concern until you sell the shares.
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For buying or selling shares, there are no transaction costs and there are not any commissions.
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Easy to use - mutual funds are easy to invest in. You only need a bank account, and some money.
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Flexibility: You can easily change your holdings without incurring additional charges.
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Access to information - you can check out what is happening inside the fund and how well it performs.
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Ask questions and get answers from fund managers about investment advice.
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Security – You can see exactly what level of security you hold.
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Control - You can have full control over the investment decisions made by the fund.
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Portfolio tracking - You can track the performance over time of your portfolio.
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You can withdraw your money easily from the fund.
There are disadvantages to investing through mutual funds
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Limited selection - A mutual fund may not offer every investment opportunity.
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High expense ratio. The expenses associated with owning mutual fund shares include brokerage fees, administrative costs, and operating charges. These expenses will reduce your returns.
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Lack of liquidity: Many mutual funds won't take deposits. They must be bought using cash. This limits the amount that you can put into investments.
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Poor customer service. There is no one point that customers can contact to report problems with mutual funds. Instead, you need to contact the fund's brokers, salespeople, and administrators.
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It is risky: If the fund goes under, you could lose all of your investments.
What is a bond?
A bond agreement between 2 parties that involves money changing hands in exchange for goods or service. It is also known as a contract.
A bond is typically written on paper, signed by both parties. This document contains information such as date, amount owed and interest rate.
When there are risks involved, like a company going bankrupt or a person breaking a promise, the bond is used.
Bonds are often combined with other types, such as mortgages. This means that the borrower has to pay the loan back plus any interest.
Bonds can also raise money to finance large projects like the building of bridges and roads or hospitals.
When a bond matures, it becomes due. When a bond matures, the owner receives the principal amount and any interest.
If a bond does not get paid back, then the lender loses its money.
What is a Stock Exchange, and how does it work?
A stock exchange allows companies to sell shares of the company. This allows investors and others to buy shares in the company. The market decides the share price. The market usually determines the price of the share based on what people will pay for it.
The stock exchange also helps companies raise money from investors. To help companies grow, investors invest money. Investors purchase shares in the company. Companies use their money in order to finance their projects and grow their business.
There can be many types of shares on a stock market. Others are known as ordinary shares. These shares are the most widely traded. These are the most common type of shares. They can be purchased and sold on an open market. Stocks can be traded at prices that are determined according to supply and demand.
Preferred shares and debt securities are other types of shares. When dividends become due, preferred shares will be given preference over other shares. The bonds issued by the company are called debt securities and must be repaid.
Statistics
- 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)
- 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)
- The S&P 500 has grown about 10.5% per year since its establishment in the 1920s. (investopedia.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)
External Links
How To
How to open and manage a trading account
Opening a brokerage account is the first step. There are many brokers available, each offering different services. Some charge fees while others do not. Etrade, TD Ameritrade and Schwab are the most popular brokerages. Scottrade, Interactive Brokers, and Fidelity are also very popular.
Once you have opened your account, it is time to decide what type of account you want. One of these options should be chosen:
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Individual Retirement Accounts (IRAs).
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Roth Individual Retirement Accounts (RIRAs)
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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 offers different advantages. IRA accounts have tax advantages but require more paperwork than other options. Roth IRAs allow investors to deduct contributions from their taxable income but cannot be used as a source of funds for withdrawals. SIMPLE IRAs and SEP IRAs can both be funded using employer matching money. SIMPLE IRAs are simple to set-up and very easy to use. They allow employees and employers to contribute pretax dollars, as well as receive matching contributions.
Finally, determine how much capital you would like to invest. This is called your initial deposit. Most brokers will give you a range of deposits based on your desired return. A range of deposits could be offered, for example, $5,000-$10,000, depending on your rate of return. The lower end of this range represents a conservative approach, and the upper end represents a risky approach.
You must decide what type of account to open. Next, you must decide how much money you wish to invest. There are minimum investment amounts for each broker. These minimum amounts can vary from broker to broker, so make sure you check with each one.
Once you have decided on the type of account you would like and how much money you wish to invest, it is time to choose a broker. Before selecting a broker to represent you, it is important that you consider the following factors:
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Fees-Ensure that fees are transparent and reasonable. Brokers will often offer rebates or free trades to cover up fees. However, some brokers actually increase their fees after you make your first trade. Avoid any broker that tries to get you to pay 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 – Choose a broker offering security features like multisignature technology and 2-factor authentication.
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Mobile apps - Check if the broker offers mobile apps that let you access your portfolio anywhere via your smartphone.
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Social media presence – Find out if your broker is active on social media. It might be time for them to leave if they don't.
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Technology – Does the broker use cutting edge technology? Is the trading platform intuitive? Are there any issues with the system?
Once you have selected a broker to work with, you need an account. Some brokers offer free trials. Other brokers charge a small fee for you to get started. Once you sign up, confirm your email address, telephone number, and password. Next, you will be asked for personal information like your name, birth date, and social security number. You'll need to provide proof of identity to verify your identity.
After you have been verified, you will start receiving emails from your 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. You should also keep track of any special promotions sent out by your broker. You might be eligible for contests, referral bonuses, or even free trades.
Next, you will need to open an account online. An online account can usually be opened through a third party website such as TradeStation, Interactive Brokers, or any other similar site. Both sites are great for beginners. You will need to enter your full name, address and phone number in order to open an account. Once this information is submitted, you'll receive an activation code. To log in to your account or complete the process, use this code.
Once you have opened a new account, you are ready to start investing.