Position：home

5 Top Consumer Staples Stocks to Buy in 2023

What are Consumer Staples?

Consumer staples, also known as non-cyclical or defensive stocks, are companies that sell products and services that people need or use on a regular basis, regardless of economic conditions. These products and services include food, beverages, tobacco, household products, and personal care items.

Why Invest in Consumer Staples Stocks?

Consumer staples stocks are often considered to be a good investment for several reasons:

Stable earnings: Consumer staples companies tend to have stable earnings, even during economic downturns. This is because people still need to buy food, beverages, and other essential items, even when they are cutting back on other expenses.
Low volatility: Consumer staples stocks are also known for their low volatility, meaning that their prices tend to move less than the overall market. This makes them a good option for investors who are looking for a more stable investment.
High dividend yields: Many consumer staples companies pay dividends to their shareholders. This can provide investors with a source of passive income.

5 Top Consumer Staples Stocks to Buy in 2023

Here are five of the top consumer staples stocks to buy in 2023:

Procter & Gamble (PG): Procter & Gamble is a global consumer staples giant with a portfolio of well-known brands, including Tide, Gillette, Pampers, and Crest. The company has a strong track record of consistent earnings growth and dividend payments.
Nestlé (NSRGY): Nestlé is a Swiss multinational food and beverage company with a portfolio of over 2000 brands, including Nescafé, KitKat, and Gerber. The company has a strong global presence and a history of innovation.
Coca-Cola (KO): Coca-Cola is the world's largest beverage company, with a portfolio of over 500 brands, including Coca-Cola, Diet Coke, and Sprite. The company has a strong global presence and a history of consistent earnings growth.
PepsiCo (PEP): PepsiCo is the world's second-largest beverage company, with a portfolio of over 22 brands, including Pepsi, Mountain Dew, and Gatorade. The company also has a strong snacks business, with brands such as Frito-Lay and Doritos.
Unilever (UL): Unilever is a British multinational consumer goods company with a portfolio of over 400 brands, including Dove, Axe, and Ben & Jerry's. The company has a strong global presence and a history of innovation.

Table 1: Financial Performance of the 5 Consumer Staples Stocks

Company	Revenue (2022)	Net Income (2022)	EPS (2022)	P/E Ratio (2022)	Dividend Yield (2022)
Procter & Gamble	$80.3 billion	$19.4 billion	$6.39	25.7	2.6%
Nestlé	$94.4 billion	$16.9 billion	$5.13	26.3	2.9%
Coca-Cola	$43.0 billion	$10.5 billion	$2.56	26.0	2.8%
PepsiCo	$76.4 billion	$10.7 billion	$6.19	24.2	2.7%
Unilever	$58.6 billion	$8.3 billion	$3.10	23.1	3.2%

Table 2: Dividend Yields of the 5 Consumer Staples Stocks

Company	Dividend Yield (2022)	5-Year Average Dividend Yield
Procter & Gamble	2.6%	2.8%
Nestlé	2.9%	3.1%
Coca-Cola	2.8%	3.0%
PepsiCo	2.7%	2.9%
Unilever	3.2%	3.4%

Table 3: P/E Ratios of the 5 Consumer Staples Stocks

Company	P/E Ratio (2022)	5-Year Average P/E Ratio
Procter & Gamble	25.7	26.1
Nestlé	26.3	26.7
Coca-Cola	26.0	26.4
PepsiCo	24.2	24.6
Unilever	23.1	23.5

Table 4: Historical Performance of the 5 Consumer Staples Stocks

Company	Total Return (2013-2022)	Annualized Return (2013-2022)
Procter & Gamble	123.2%	7.9%
Nestlé	117.5%	7.6%
Coca-Cola	104.3%	7.0%
PepsiCo	100.7%	6.7%
Unilever	89.4%	6.1%

Conclusion

Consumer staples stocks are a good investment option for investors who are looking for stability, low volatility, and dividend income. The five stocks discussed in this article are all well-established companies with a history of consistent earnings growth and dividend payments.