The consumer staples sector companies produce products that consumers have to buy regardless of the state of the economy. These products include items like food, personal products, hygiene products, household goods, etc.
Consumer staple companies offer stable dividends with steady growth. They do not grow quickly like tech companies for example. Instead year after year they grow slowly and reward long-term shareholders. Some of the firms have exposure to overseas markets as well which gives them earnings diversification. Adding these stocks to a diversified portfolio offers a “cushion effect” to the portfolio during adverse market conditions.For example, P&G has increased dividends for many years in a row. Colgate-Palmolive has strong presence in overseas markets.
Five consumer staples are listed below:
1.Company: General Mills Inc (GIS)
Current Dividend Yield: 3.16%
Sector: Food Processing
2.Company: ConAgra Foods Inc (CAG)
Current Dividend Yield: 3.09%
Sector: Food Processing
3.Company: Colgate-Palmolive Co (CL)
Current Dividend Yield: 2.25%
Sector: Personal & Household Products
4.Company: Procter & Gamble Co (PG)
Current Dividend Yield: 3.07%
Sector: Personal & Household Products
5.Company: Kimberly-Clark Corp (KMB)
Current Dividend Yield: 3.43%
Sector: Personal & Household Products
Note: Dividend yields noted are as of Jan 25, 2013
Disclosure: No Positions