In this article, we will discuss the 14 best consumer staple stocks to buy now. The consumer staples sector consists of companies that produce and sell essential products that people need on a daily basis. These products are consumed regularly, regardless of the state of the economy or personal financial condition. Due to their defensive qualities, these companies are considered relatively stable investments with steady demand for their products.
Despite high inflation last year, the consumer staples sector performed well and outperformed the wider market by a significant margin. The S&P Consumer Staples Select Sector index gained 0.37% through December 9, 2022, compared to a 16.17% drop in the S&P 500, according to Fidelity. Data from the Commerce Department reported a 3% growth in advanced retail sales in January, with a 6.4% increase from the same period last year. Consumer spending accounts for nearly two-thirds of economic activity in the US, indicating continued spending despite elevated inflation.
Analysts have a positive outlook on the consumer staples sector this year. These companies can perform better by reporting growing sales volumes, consistent cash flows, and strong balance sheets, making them attractive from a dividend perspective. Companies like Walmart Inc. (NYSE:WMT), The Procter & Gamble Company (NYSE:PG), and PepsiCo, Inc. (NASDAQ:PEP) are well-known consumer staples stocks that pay regular dividends to shareholders.
To identify the best consumer staples dividend stocks, we looked at dividend-paying stocks from the S&P 500 Consumer Staples Index with strong dividend growth track records. Using Insider Monkey’s hedge fund sentiment data as of Q4 2022, we ranked these stocks based on the number of hedge funds holding stakes in the companies.
The list of 14 best consumer staples dividend stocks includes companies like Kimberly-Clark Corporation (NYSE:KMB), The Clorox Company (NYSE:CLX), The Hershey Company (NYSE:HSY), Archer-Daniels-Midland Company (NYSE:ADM), Sysco Corporation (NYSE:SYY), Altria Group, Inc. (NYSE:MO), Mondelez International, Inc. (NASDAQ:MDLZ), Philip Morris International Inc. (NYSE:PM), and The Coca-Cola Company (NYSE:KO) among others.
These companies have strong dividend growth track records, solid dividend policies, and attractive dividend yields, making them appealing for income investors. With consistent cash flows and stable demand for their products, these consumer staples dividend stocks are considered reliable investments in the current market environment.