Consumer staples refer to goods and services that are considered essential and are purchased regularly by consumers regardless of changes in the economy. These products include food, beverages, personal care items, and household products. Companies that produce and sell consumer staples are considered defensive stocks. As they tend to be less affected by economic downturns and market fluctuations than other sectors. Consumer staples stocks are often considered to be a safe investment. This is largely due to the fact that they can offer steady returns for investors. As well as are less likely to experience large fluctuations in stock prices.
However, they also tend to have lower growth potential than other sectors. Examples of consumer staples companies include The Coca-Cola Company (NYSE: KO), and PepsiCo (NASDAQ: PEP). These companies are known for their strong brand names, wide distribution networks, and consistent revenue streams. Which can make them attractive to investors looking for stability and dependability. Consumer staples stocks generally pay dividends, which can be an attractive feature for income-oriented investors.
Overall, consumer staples are a vital part of the economy. Meanwhile, they also can provide investors with a stable source of income and growth. They are less volatile and less risky than other sectors and provide a steady stream of dividends. They are also less susceptible to economic downturns, which makes them a good choice for investors who are looking for stability and dependability in their portfolios. If this has you keen on investing in the consumer staples sector, here are two blue-chip names to watch in the stock market today.
Consumer Staples Stocks To Watch Now
Clorox Company (CLX Stock)
First, The Clorox Company (CLX) is an American multinational manufacturer and marketer of consumer and professional products. The company operates in several business segments, including Cleaning, Lifestyle, Household, and International. Notably, the company’s most well-known brands include Clorox bleach, Kingsford charcoal, Hidden Valley dressings, and Brita water filtration products.
This month, Clorox announced that it will release its second-quarter fiscal year 2023 results on February 2nd, 2023. The press release and prepared management remarks will be posted on the company’s website at 1:15 pm Pacific Time/ 4:15 pm Eastern Time. Additionally, there will be a live Q&A audio webcast for analysts with the CEO Linda Rendle and Chief Financial Officer Kevin Jacobsen, starting at 2 pm Pacific Time/ 5 pm Eastern Time.
Today, CLX offers its shareholders a quarterly dividend in the amount of $1.18 per share. This results in an annual dividend yield of 3.23%. Additionally, since the start of 2023, shares of CLX stock have started to recover from 2021 as shares are up 2.30%. Meanwhile, looking ahead to Tuesday morning’s trading action, CLX stock is trading at around $146.11 per share as of this past Friday’s closing bell.
Procter & Gamble Co. (PG Stock)
Next, The Procter & Gamble Company (PG), also known as P&G, is an American multinational consumer goods corporation. The company operates in several business segments, including Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care, and its most well-known brands include Tide, Pampers, Charmin, Downy, and Head & Shoulders.
Just last week, the company’s Board of Directors declared a quarterly dividend of $0.9133 per share on common stock. This dividend is payable on or after February 15th, 2023 to stockholders on record as of the end of business day on January 20, 2023. For context, PG has been paying a dividend for 132 straight years since its inception and has raised its dividend for 66 consecutive years. This dividend results in an annual dividend yield of 2.42%.
Over the last six months of trading, PG stock has bounced by 5.28% as of Friday’s closing bell. Meanwhile, looking at the holiday-shortened week, shares of PG stock look set to open Tuesday morning’s trading session at around $150.80 a share.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.