So much that they can’t reinvest it all wisely. ![]() Steady Income and Great Upsideīig consumer staples companies generate a lot of cash. They’re also a stable source of income that can generate large capital gains along the way. These stocks tend to be less volatile… and their benefits don’t stop there. Investing in just a few of the top 20 can do wonders. ![]() Or at least substantially limit your losses when the market heads south. But consumer staples stocks can hand you gains. Down Yearĭown years can devastate your portfolio. Let’s look at how this works in the market…ĭuring the past five downturns, staples stocks have outperformed the S&P 500 every single time. But during a down market, they can help protect your portfolio. As a result, these kinds of stocks tend to make smaller moves. The Consumer Staples Sector Index beta is around 0.63, and the S&P 500’s is 1.0. They have a low beta, which is used to measure volatility compared with the S&P 500. When “regular” stocks drop 10%, staples stocks tend to drop less. Staples stocks tend to be less volatile than the broader market. 20 Consumer Staples Dividend Stocks for 2022 Here’s a good list to start your investment research. Warren Buffett holds many of these staples stocks in his portfolio. Many of the world’s top investors pour money into these businesses. If commodity prices jump, the companies in question simply raise their prices… and folks keep buying. No matter what happens in the market, folks buy the basics. For example… shampoo, toilet paper, soft drinks, cigarettes and mouthwash. What Are Consumer Staples Stocks?Ĭonsumer staples companies make and sell the basics. It’s free to use and can help you see how your investment portfolio can grow. Then, below the list, I’ll go into detail on how consumer staples can lower your risk and produce healthy returns.Īlso, before we dive in, you might want to check out our Investment Calculator. But before we get to them, let’s take a closer look at what consumer staples are and why they’re a great investment. Rain or shine, it’s an all-weather strategy.īelow I’ve listed some of the top consumer staples stocks. ![]() By paying dividends, they keep your pockets stuffed through both up and down markets. Consumer staples stocks generate steady income.
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