HomeStock Market4 Best Consumer Staples Stocks to Buy in 2021

4 Best Consumer Staples Stocks to Buy in 2021

4 Best Consumer Staples Stocks to Buy in 2021

Despite the fact that many consumer staples stocks have a strong track record, there are always some stocks in any sector that outperform others. The stocks listed below have the potential to be the category’s best-performing stocks.

1. Coca-Cola Co. (NYSE: KO)

Earnings: According to Nasdaq, the company has beaten analyst expectations in terms of earnings per share for the past four quarters.

Dividend History: Coca-Cola stock has a 3.08 percent dividend yield, according to YCharts. Despite economic hardships and the COVID-19 pandemic, the company has consistently increased its dividend payments. The stock’s yield has fluctuated between 2.66 percent and 4.29 percent over the last five years, averaging around 4.29 percent.

Coca-Cola is one of the largest companies in the United States, with a market capitalization of more than $232 billion.

Consumers have become more conscious of what they put into their bodies as they eat and drink over time. Because Coca-flagship Cola’s product is a high-sugar soft drink, this has caused some concern.

 

Despite this, the company’s stock has been steadily rising, along with revenue, earnings, and dividends. After all, according to Statista, the company controls 43.7 percent of the non-alcoholic beverage market in the United States.

According to Dividend.com, the company has increased dividend payments to its shareholders every year for the past 59 years, and this trend is unlikely to change.

The company’s diversified portfolio of consumer staples products is the reason for its success, even in the face of health-related headwinds.

 

The Coca-Cola soft drink, the company’s main product, is the most successful soda of all time, but it’s not the only trick up its sleeve. Coca-Cola also owns Powerade, Dasani Water, and Vitaminwater, among other healthy lifestyle and energy drink brands.

The stock is a strong investment play, generating more than $30 billion in revenue annually and seeing consistent growth in earnings per share.

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2. General Mills   (NYSE: GIS)

Earnings: According to Nasdaq, the company has outperformed analyst expectations in three of the last four quarters in terms of earnings per share.

Dividend yields on the stock have ranged from 3.37 percent to 5.03 percent over the last four years, for an average of an impressive 3.90 percent yield.

General Mills has a market capitalization of more than $35.9 billion, making it yet another massive corporation.

As the maker of popular cereals like Cheerios, Lucky Charms, and Chex, General Mills has become a household name. The business, on the other hand, isn’t a one-trick pony. The company makes anything from yogurt to complete dinners that can be purchased in the freezer department of your local supermarket.

Over the years, like most big names in the consumer staples sector, General Mills has had a long history of producing organic sales growth, which has equated to growing revenues, earnings, and stock prices on a relatively consistent basis.

The firm isn’t bashful about telling its investors they’re valued either. General Mills is recognized for returning wealth to its shareholders through share buybacks and consistently robust dividend distribution.

In reality, the current dividend yield on the stock is 3.44 percent, paying out roughly $2 each year to owners for each share of stock bought during the last year.

The consumer staples goliath has also demonstrated its endurance to adverse market conditions over the length of the coronavirus epidemic. Although several equities throughout the market took a significant blow early in 2020 and again coming up to the 2020 elections, General Mills isn’t one of those firms.

Even though one of the worst economic and social times in the United States, the stock has experienced more than a 20 percent increase since March 2020, and will likely continue more of the same for the remainder of 2021.

With a solid history of outstanding market performance, competitive dividend distributions, and growth in both revenue and earnings, General Mills has become a top option among investors wanting to fill a place in their portfolios and is well worth considering for yours.

3. Clorox (NYSE: CLX)

Clorox, like the majority of the other stocks on this list, has outperformed analyst forecasts in terms of profits per share over the previous four quarters. The firm, on the other hand, is recognized for not only meeting but exceeding expectations. Over the previous four years, the firm has delivered an average positive earnings surprise of 21.33 percent.

Clorox has a history of paying a very consistent dividend. Yields have fluctuated between 2.4 percent and 2.7 percent over the last four years, with an average of 2.4 percent.

Market Capitalization: The stock has a market capitalization of over $23 billion.

Clorox is one of the world’s leading cleaning product firms. Most likely, you already have one or more of their goods under your kitchen sink.

Clorox, which was founded in 1913, has become synonymous with bleach and cleaning products. Clorox Bleach, Tilex, Pine-Sol, S.O.S., Green Works, and a lengthy list of additional cleaning products are all manufactured by this firm.

The company’s product line is likewise quite varied. Clorox has seen success in other industries with brands including Kingsford, Brita, and Hidden Valley, despite the fact that the majority of these goods are in the cleaning area.

Clorox, like the other consumer staples stocks on our list, is recognized for producing significant sales and profit growth year over year. With a current yield of nearly 2.47 percent, the firm has also regularly provided significant dividends. All of these elements have contributed to the company’s long-term, generally steady growth.

Clorox’s stock price skyrocketed in 2020 as a result of COVID-19. Following a peak in early 2021, the stock began to fall as investors began to make gains. Nonetheless, the stock’s selloff is mainly exaggerated, presenting a chance to participate in future gains at a discount.

While vaccinations are beginning to reach consumers and COVID-19 case numbers are decreasing, consumers are placing a greater focus on cleanliness than they were before the pandemic, and this trend is expected to continue.

As a result, the cleaning products industry as a whole is projected to enjoy continued demand increase. Clorox goods were hard to come by during the start of the epidemic because the firm couldn’t keep up with the enormous number of cleaning supplies people were buying.

For the most part, the supply chain problem has been resolved, and demand for cleaning products is unlikely to diminish anytime soon. Furthermore, there’s a good case to be made that even after the pandemic, the virus will be so firmly embedded in people’s brains that demand for cleaning and hygiene goods will continue to grow.

As a result, the stock of Clorox may have lots of space to rise.

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4. The Procter & Gamble Company (NYSE: PG)

Earnings: For the past four quarters, the company has delivered strong earnings, beating analyst expectations each time. Over the last four quarters, the average earnings surprise has been 10.48 percent.

Procter & Gamble has maintained an average dividend yield of 2.84 percent over the last five years, according to YCharts.

Market Capitalization: Procter & Gamble has a market capitalization of more than $335 billion, making it one of the largest companies in the United States.

Procter & Gamble has been operating for over 200 years and has enjoyed remarkable success throughout the decades. Today, the firm boasts 22 well-known brands that each produce more than $1 billion in yearly sales, alongside a lengthy number of lesser-known brands that helped the company achieve almost $71 billion in revenue in 2020.

Some of the company’s best-renowned brands include Tide, Crest, and Gillette. However, these big brands only constitute a small fraction of the company’s range of paper goods, laundry detergents, diapers, and cosmetic items.

Procter & Gamble’s share price has witnessed a remarkable rebound from substantial reductions triggered by the initial wave of COVID-19. Consumers aren’t going to quit washing their clothing or brushing their teeth anytime soon. Despite the fact that economic concerns surfaced early on, investors expect the company’s sales and profits growth to continue.

Investors began taking gains on the stock in early 2021. Prices fell by roughly 10% as a result of this. Nonetheless, the move was only temporary, and the stock has nearly recovered, though there is still a strong case to be made that it is undervalued.

In addition, the company is constantly innovating. It most recently developed and launched Zeno, a safe, naturally-derived line of insect repellents. It also recently launched Home Made Simple, a line of plant-based cleaning products that it expects to be in high demand as strong consumer demand for cleaning products collides with a widespread desire to go green.

When it comes to dividends, the company has a track record of consistently high payouts, with a current yield of more than 2.5 percent. That’s that about “4 Best Consumer Staples Stocks to Buy in 2021”

Source: Editorial times

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