Consumer staples stocks are a reliable investment option for many investors. These stocks provide stability and less volatility during bearish market cycles, making them a popular choice for those looking for consistent returns. Additionally, many consumer staples stocks offer high dividends that are often increased annually.
One top consumer staples stock to consider is Costco (COST). Costco operates 871 warehouses worldwide, offering discounts on a wide range of products through its annual membership program. While Costco has a low dividend yield of 0.60%, the company consistently raises its dividend by over 10% each year. Shares of Costco have seen significant growth, with a 48% increase year-to-date and a 232% increase over the past five years.
Another key player in the consumer staples industry is Walmart (WMT), the largest retailer in the world by revenue. Walmart’s “Every Day Low Price” strategy has helped the company attract customers in any economic environment. With a dividend yield of 1.50% and steady gains for investors, Walmart is a solid choice for those looking for a reliable investment option. The company has also been successful in expanding into e-commerce, experiencing 15% year-over-year growth in that segment.
For those looking for a more high-growth option, Celsius (CELH) is a top pick in the consumer staples sector. The company’s sports beverages have gained popularity, leading to a 49% year-to-date gain and a remarkable 4,250% increase over the past five years. Celsius reported 104% year-over-year revenue growth in the third quarter and is beginning its international expansion. Analysts are optimistic about Celsius’ long-term prospects, with a “Strong Buy” rating and an average price target of $72.12 per share.
Overall, consumer staples stocks offer stability and growth potential for investors looking to diversify their portfolios. Whether you prefer a reliable dividend payer like Costco or Walmart, or a high-growth option like Celsius, consumer staples stocks are worth considering for the new year.