Usually, when a company has improved dividends for as long as P&G has, dividend hikes tend to get a little chintzy thanks to slowing profit growth and a typically high payout ratio. 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.

Worldwide, Walmart gets more than 260 million customer visits each year. For those who prefer to avoid crowds, there’s the members-only Sam’s Club and Walmart+ subscription delivery options as well. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer. This growth was supported by companies like Charter Communications (CHTR) which grew 19.72% and Activision Blizzard (ATVI) rose 11.07%.

• When assessing a company’s ongoing ability to pay dividends, one factor to consider is its dividend payout ratio, which is measured as a percentage.
• Real estate dragged down the S&P 500 in the third quarter as the worst-performing sector of the index falling 9.66% in three months.
• CNBC's Jim Cramer on Wednesday recommended a slate of consumer staple stocks for 2023.
• Eggs, milk, soda, bath soap, laundry detergent, socks, underwear, pet food, diapers, toilet paper, cigarettes, ibuprofen and cough medicine are all consumer staples products.

To filter by dividend yield, click the filter icon at the top of the dividend yield icon, as shown above. Research Sector and Industry performance  Get the latest news and analysis for sectors and industries. Mondelez International has been gaining from the strength in emerging markets and its core chocolate and biscuit categories. MDLZ has also been focused on strengthening areas with higher growth potential through prudent buyouts (like Chipita, Clif Bar and Ricolino) and divestitures.

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To compete on price consumer staples producers must be able to keep their costs down by adopting new technologies and processes, or they must differentiate by introducing innovative products. Consumer staples are considered to be non-cyclical, meaning that they are always in demand, year-round, no matter how well the economy is—or is not—performing. Also, people tend to demand consumer staples at a relatively constant level, regardless of their price. Generally, the utility sector is considered a stable investment, but historically inflation and high interest rates can take a toll on the sector. Utility companies typically carry higher debt in order to finance their capital expenditure so higher rates tend to adversely impact those stocks.

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. Consumer goods are goods that people cannot or do not want to cut back on, regardless of the state of the economy. This is because companies have to pay more for their inputs but may not be able to pass these higher costs on to consumers. In addition, inflation can affect consumer goods stocks in yet another way. When inflation is high, consumers may cut back on spending, which leads to lower sales for businesses in the sector. Thus, firms in this industry can benefit from higher product prices because consumers still have to buy these goods.

Advantages of Consumer Staples Stocks

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. Investing in consumer staple stocks may provide diversification benefits to your portfolio. Investing in various consumer staple companies can diversify your portfolio and potentially reduce risk.

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. Consumers looking for a tobacco fix will cut back many other discretionary items before they give up on Altria products. This will provide stability in sales and profits for one of Wall Street's best consumer staples stocks, regardless of the macroeconomic environment. Like other consumer staples companies, P&G received a healthy boost from the pandemic. Notably, the organic sales gain was driven by a mixture of higher volume, price increases, and selling more higher-priced items.

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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 green hydrogen stocks why K is on this list of the best consumer staples stocks. In 2023, SJM joined the list of Dividend Aristocrats, stocks that have provided at least 25 consecutive years of growth in their distributions.

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. The company also owns Frito-Lay and Quaker, as well as popular drink brands such as Mountain Dew and Gatorade. Its Frito-Lay snack business generates almost as much revenue in North America as its beverages, and that business has been a source of growth while soda sales slow in the U.S. and around the world.

In addition, firms can compensate for higher input costs by being more efficient or by passing on some of the costs to consumers. The consumer staples sector refers to the list of consumer staples stocks, including companies that produce or sell products that consumers regularly purchase, regardless of Wealth by Virtue economic conditions. This sector includes companies that manufacture and sell items considered daily or weekly consumer necessities. As you might have already guessed, the consumer staples stocks list is relatively lengthy, so to help, we have divided it into categories to make it easier to understand.

Research Consumer Staples at Fidelity

If that recession doesn't materialize, you could miss out on larger gains available in other sectors. A consumer staple ETF aims to expose investors to the consumer staples sector without having to pick individual stocks. By investing in a consumer staple ETF, investors can gain exposure to a diversified portfolio of companies in this sector, which can reduce risk and increase returns. A consumer staples exchange-traded fund (ETF) invests in companies that produce essential consumer products such as food, beverages, personal care items and household products. Consumer staples ETFs are a type of sector ETF, which means they track a particular sector of the economy. In addition, consumer staples companies often have established brand names and loyal customer bases, which can provide a degree of protection against competition.

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The crucial variable to watch will be whether earnings estimates can rise enough to offset the drag from higher interest rates. While shares quickly rebounded from their COVID drop and even eked out some gains, Kimberly-Clark’s stock is virtually flat from the start of 2020—even when including dividends. Consumer staples as a whole have underperformed the market in that time, but not by nearly so much.

It has an expected earnings growth rate of 23.3% for the current year (ending March 2023). The Zacks Consensus Estimate for current-year earnings has improved 30% over the last 90 days. The bellwether for consumer products companies warned of profit pressures due to high How to invest in natural gas commodity prices, as well as inflation-weary shoppers cutting back. CNBC's Jim Cramer on Wednesday recommended a slate of consumer staple stocks for 2023. The company's dividend yields just under 2% and the annualized total return over the last 15 years is 8.4%.

Consumer Staples Stock #5: Conagra Brands (CAG)

However, Altria has been through a lot in the last 30 years or so and has learned how to operate in the current environment through a focus on margins and shareholder value. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price. A multinational, member-only big box chain, Costco is the fifth largest retailer in the world, according to the National Retail Foundation. 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. Rather than rising by between 4% and 5%, Coke now sees profits heading higher by 5% to 6%.

The consumer staples sector is home to some of the most well-known dividend growth stocks in the world. PG is the undisputed leader in consumer staples, with a market capitalization of nearly $370 billion. Several key advantages of consumer staples stocks include stability, growing dividends, and lower volatility. Consumer staple ETFs typically invest in many companies, including large- and mid-cap stocks. These companies often have established brand names, a history of stable earnings and dividends, and a relatively low level of volatility compared to other sectors. These factors make them attractive to investors looking for a more stable and defensive investment option.

In PFE’s case, it has to make up for $17 billion worth of revenues that it’ll lose between 2025 through 2030. Fortunately, Pfizer has a deep pipeline—over the next 18 months alone, it’s expected to launch some 19 products or indications, 15 of which are from its own R&D. Pfizer has been plenty acquisitive, too, however, snapping up Global Blood Therapeutics and Biohaven, and it’s currently in the process of buying Seagen. On the one hand, Kimberly-Clark is another longtime Aristocrat that has delivered more than half a century of uninterrupted dividend growth, and it delivers a better yield than P&G. However, its dividend growth has been slightly less robust over the past decade or so, and its payout ratio is higher, at 72%. That’s not to say KMB’s dividend will suddenly implode, but the potential for dividend growth isn’t quite as high.