InvestorPlace provides stock market news, stock advice, and trading tips for investors. Consumer staples are essential items that make up a significant part of any budget. These items are considered essential, making companies that sell them more defensive in nature.
Consumer staples giants tend to generate long-term wealth and provide stability during times of turmoil. When the economy is doing well, these companies can generate substantial revenue and profits. However, if things take a turn for the worse, their revenue and profit levels should remain relatively stable.
Johnson & Johnson (JNJ) is a pharmaceutical company that has been added to America’s Top 20 Innovative companies list. With a long history of success, JNJ offers a 3.3% dividend yield and has strong projected earnings per share growth. Trading at an undervalued price of $152.67, JNJ is a good long-term buy.
Costco (COST) is a strong dividend growth stock that has outperformed the benchmark index over the past decade. Its bulk buying model appeals to consumers, especially during economic downturns. Costco’s recent sales have surged, and investors can expect further increases in earnings. This mega-cap stock is worth holding for its wide range of offerings.
Procter & Gamble (PG) is another consumer staple stock worth owning. With a diverse portfolio of trusted brands, P&G ensures steady performance in essential consumer product needs. Despite facing some declines in certain categories, P&G has increased its market share and remains competitive in the market.
Overall, these consumer staples giants are defensive gems that can safeguard your portfolio during uncertain times. Investors should consider monitoring these top names for long-term success.