Shares
of consumer staples companies make up nearly 25 % while shares of technology companies make up less than 2 % of the index.
A lot
of consumer staples companies are struggling to sustainably grow,» Krantz said.
Top Consumer Stocks WMT 0.09 % MCD +0.38 % DIS +1.14 % CVS +0.99 % KO +0.52 % Consumer stocks were broadly higher Friday, with shares
of consumer staples companies in the S&P 500 advancing about 0.6 % while shares of consumer discretionary firms
Top Consumer Stocks WMT +0.23 % MCD +0.22 % DIS +1.17 % CVS +1.17 % KO +0.70 % Consumer stocks were broadly higher Friday, with shares
of consumer staples companies in the S&P 500 advancing about 1.0 % while shares of consumer discretionary firms in
Microsoft (MSFT) started paying out cash in 2003 and Intel offers a yield stronger than many
of the consumer staple companies.
Like most
of the consumer staple companies, it is rare that Nestle stocks are really cheap.
Not exact matches
Buffett, who is one
of the richest men in the world and worth $ 74.3 billion, according to Forbes, traditionally has an investing strategy centered on stable
companies that sell
consumer staples and will be around for many years.
The facts are not right here, energy is cheap that means the cost
of manufacturing and transporting
of goods is low, food and
consumers staples already more affordable, so what if a few American oil
companies going out
of business.the cost
of producing oil in middle east is less than $ 10 / bl and we were paying more than $ 140 / bl for it, with that huge profit margin the big oil
companies and oil producing nations became richer and the rest
of us left behind, with the oil price this low the oil giants don't want to reduce the price at pump even a penny, because they are so greedy.worst case scenario is some CEOs bonuses might drop from $ 20 million to $ 15 millions I am sure they will survive.in terms
of the stock market it always bounces back, after all it's just a casino like game.
Additionally, we believe the more defensive sectors
of the equity market such as
consumer staples could underperform, along with some telecommunication
companies and utilities, where returns are heavily regulated.
For stocks, it's important to have stocks in your portfolio from a large variety
of companies, including
companies in different sectors or industries, such as
consumer staples or materials; from
companies of different sizes, such as large - cap or small - cap stocks; from
companies in different countries and from
companies that either have growth potential or good dividend yields.
They ranked low on the Standard & Poor's 500 Composite Index: Energy shares sank 5.9 %, on average, while materials sector stocks collectively shed 5.5 %
of their value; among the nine other equity sectors, only telecommunication services and
consumer staples companies posted larger losses.1
From a macro perspective,
consumer staples companies are becoming a decreasingly important part
of the overall domestic economic pie.
Examples
of sector include energy,
consumer discretionary, telecommunications,
consumer staples, etc.Advice: Knowing what sector a
company is in can help you determine how it will react to various economic trends.
Looking at the sector - wide performance
of Corporate America in the second quarter
of this year, more than 80 percent
of the
companies in information technology, healthcare and the financial - services space reported higher than estimated EPS growth, closely followed by the
consumer staples industry producing food, beverages, household articles, while about 60 - 70 percent
of the
companies listed under the energy, utilities and materials sectors reported better than expected EPS numbers.
In the fourth quarter
of 2000, as the market began to forecast the coming profits recession,
consumer staple stocks - the shares
of companies with stable revenues and earnings - rose 21 percent, the best performing group during that period.
In one
of my latest blogposts, I wrote about the importance
of putting rock solid defensive
companies such as
consumer staples at the core
of the investment portfolio in order to build an ever growing passive income machine as a dividend growth investor.
Companies in the sector face more competition than in sectors like utilities or
consumer staples so there is no guarantee
of higher share prices.
The fund holds one
of the most concentrated portfolios in the segment and currently tilts toward
consumer staples companies.
Companies of consumer staples are able to increase their prices a little faster but competition usually limits the ability and neither sector is a good hedge against inflation.
Other similar things might be investing in supermarkets and «
consumer staples» (because if your weekly shopping basket inflates, their shares and divis probably will too) or investing in healthcare as a hedge against future healthcare costs inflating or investing in utilities as a hedge against utilities bills rising (I've yet to buy any but I quite like the idea
of owning enough ~ 7 % yielding Centrica for the divis to cover the gas and electricity bills) or investing in travel and tourism
companies as a hedge against holiday costs inflating.
In general, I like
consumer staples, utilities, pharma
companies like JNJ, PG, KO, PM, SO, GSK, GILD as they are more predictable over a decent period
of time and carry less volatility.
With the ICB,
companies doing business with
consumers are divided into providers
of goods and providers
of services; with the GICS,
companies are classified by cyclical / non-cyclical distinctions, or between discretionary spending and the
staples of everyday life.
The
company, Britain's largest retailer, announced earlier this week that it was cutting the price
of a four pint (2.27 litres) bottle
of milk from # 1.39 ($ 2.32, $ 1.69) to # 1 ($ 1.67, $ 1.22) as part
of drive to reduce the amount paid by
consumers for
staples.
Scientists,
consumer groups and bee keepers say the devastating rate
of bee deaths is due at least in part to the growing use
of pesticides sold by agrichemical
companies to boost yields
of staple crops such as corn.
-- Dividend - rich shares
of utilities, phone and
consumer staples companies could get hurt, says James Liu, Global Market Strategist for J.P. Morgan Funds.
On the same CNBC segment, Michael Bapis, who heads a wealth management practice affiliated with HighTower Advisors, offered a bearish view
of consumer staples: «Margins are getting compressed so rapidly, and the
companies in this space are having trouble to produce better profits, trying to produce earnings, and I don't think they're going to be able to in the short term.»
Another characteristic
of the S&P 500 Index that makes a solid benchmark is the fact that it includes
companies in a variety
of sectors, including energy, industrials, information technology, health care, financials and
consumer staples.
And it's hard to believe that even in the worst
of economic depressions that the largest
companies in the food,
consumer staples, railroad, utility, healthcare, and banking industries will suddenly become unprofitable and no longer have the money to pay and raise those dividends.
This preference for growth manifested in the outperformance
of both stable growers, like defensive
consumer staple companies, as well as technology firms benefiting from secular trends.
I, on the other hand, reach the conclusion that certain sectors
of the economy are rarely prone to failure — conglomerates like 3M and Berkshire Hathaway, water utilities like Aqua America, electric utilities like The Southern
Company, diversified healthcare giants like Johnson & Johnson,
consumer staples like Coca - Cola and PepsiCo, housecare
companies like Colgate - Palmolive and Clorox, and energy supergiants like Exxon and Chevron, all have a very low individual chance
of failure.
The nature
of dividend growth stocks means that I own too many
consumer staples and energy
companies unfortunately.
For example, if you invest in equities, and the yield curve says to expect an economic slowdown over the next couple
of years, you might consider moving your allocation
of equities toward
companies that perform relatively well in slow economic times, such as
consumer staples.
The Dividend Kings consist
of many different types
of companies, many
of them operating in the non-cyclical
consumer staples industry.
Many
consumer staples companies have long dividend growth histories, The Coca Cola
Company (KO) is one
of them.
When looking at
consumers staples, look at
companies that have a large assortment
of products in different sectors
of consumer goods — P&G is a good example.
The S&P 500 index includes
companies in a variety
of sectors, such as energy, industrials, information technology, healthcare, financials and
consumer staples.
With some juicy valuations floating around there are a lot
of comments about «quality» stocks, as though the discounted future cash flows
of one business are worth exponentially more than the same comparable discounted future cash flows
of an alternative
company that isn't a
consumer staple or discretionary.
The fewest number
of companies do business in telecommunications and
consumer staples.
We can see this dynamic by comparing the free cash flow payout ratios
of a few different
consumer staple companies to cyclical businesses and
companies with large investment opportunities.
That puts PepsiCo Inc. (NYSE: PEP) in an excellent spot as one
of the largest
consumer staples companies in the world and primes them for continued future growth.
In addition to KMB, many other
consumer staple companies are showing up with green buy indicators on our spreadsheet, and during the next month, we may add to current positions such as GIS (General Mills), KHC (Kraft Heinz), PEP (Pepsico), and
of course, KMB (Kimberly - Clark).
And one example that I'd like to point out is Procter & Gamble, which clearly is viewed as a blue - chip
consumer staple, and there is an expectation
of stability in an investment like P&G, versus there's clearly an expectation
of volatility in a
company like Toyota, which being in the auto industry can be fairly cyclical and therefore fairly volatile.
Ned
Staple, GC and
company secretary at Zoopla, talks to us about tech, the need for e-billing, and the # 3m Series A funding
of his online business, FarmDrop, founded with ex-Morgan Stanley stockbroker Ben Pugh and food industry specialist Ben Patten, which enables
consumers to buy directly from producers.