Best Consumer Staples Stocks To Buy Now

Key Insights

• Consumer staples stocks provide safety during uncertain times. 
• These stocks have recently enjoyed strong support amid geopolitical uncertainty and rising yields. 
• Typically, such companies pay a modest dividend, which is increased year after year and provides an additional source of income for investors. 

Investors remain worried about the negative impact of rising interest rates and high commodity prices, so they search for potential safe-haven assets. One of the segments that could perform well in the inflationary environment is the consumer staples market segment. Typically, such companies can raise prices in line with inflation as they produce essential products which are in demand in every economic situation.

Procter & Gamble

Procter & Gamble stock has moved away from March lows as demand for safe-haven assets increased. Currently, analysts expect that the company will report earnings of $5.86 per share int he current year and earnings of $6.31 per share in the next year, so the stock is trading at 25 forward P/E.

This is not cheap, but traders are ready to pay a premium for safety in the current environment. A safe dividend with a forward yield of more than 2.3% serves as an additional positive catalyst for conservative investors.

Colgate-Palmolive

Colgate-Palmolive is trading at 23 forward P/E, so it is a bit cheaper than Procter & Gamble. The forward dividend yield is about 2.35%. The stock touched its yearly lows in March and started to move higher, driven by the same catalysts that pushed Procter & Gamble closer to the all-time high levels.

Coca-Cola

This classic widow-and-orphan stock is up by more than 9% year-to-date, compared to S&P 500 , which has lost more than 5% of its value since the beginning of this year.

Coca-Cola is trading at 25 forward P/E and has a forward yield of about 2.7%. Interestingly, the stock gained strong upside momentum this year, and it has a good chance to move even higher in case demand for safe-haven assets stays strong.

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