Market volatility continues to be a concern for investors in 2024, especially with the upcoming presidential election. In such uncertain times, many are turning to consumer staples stocks as a stable investment option. These stocks belong to companies that produce and sell essential goods like food, beverages, household products, and personal care items. Investing in this sector is attractive due to the consistent revenue and cash flows these companies generate. Additionally, consumer staples companies often reward shareholders through dividends and share buybacks, making them a reliable source of passive income.
Given the defensive nature of the industry, it may be a good idea to consider adding consumer staples stocks to your investment portfolio. Here are the top three consumer staples stocks to consider adding to your July buy list:
1. Mondelez International (MDLZ): Mondelez International is a global snacking powerhouse with a diverse portfolio of iconic brands such as Oreo, Cadbury, and Trident. The company has shown strong financial performance in recent years, with record revenue and net earnings in FY23. Mondelez also increased its dividend by 10% and returned $3.7 billion to shareholders.
2. Hershey (HSY): Hershey is a leading confectionery company with a long history and a strong brand portfolio that includes Hershey’s, Reese’s, and Kit Kat. Despite record-high cacao prices, Hershey’s healthy profit margins and growing presence in international markets make it a compelling investment option. In FY23, the company reported record revenue and net earnings, as well as significant free cash flow.
3. PepsiCo (PEP): PepsiCo is a global food and beverage giant known for its strong financial results and focus on innovation. The company’s diversified portfolio of brands across various categories, including healthier food options, has enhanced its competitive edge. In FY23, PepsiCo saw record revenue, earnings, and free cash flow, with significant gains in the Latin American market. The company also raised its dividend by 7% to a record amount per share.
Overall, consumer staples stocks offer stability and income potential for investors in the current market environment. Consider adding these top consumer staples stocks to your investment portfolio for potential long-term growth and returns.