Chances are your grocery cart is already full of popular staples. Consumer commodities include items you use every day, such as food, beverages, cosmetics, and other household products. Companies that produce these items can often be prudent investments. In this article, we will highlight some of the best basic consumer stocks available today and also highlight some of the reasons why basic consumer stocks can be a valuable part of a diversified portfolio.
Why invest in basic consumer stocks?
Consumer commodities usually include products you buy regularly. It can consist of the following goods:
- Over-the-counter medication
- Household cleaners
- Personal hygiene products
- Paper articles
- Tobacco products
On the one hand, the companies that manufacture these products are not always known for their explosive growth. But on the other hand, these companies are usually large and stable and can be a reliable investment during recessionary climates or periods when the market sees great volatility. An investment in basic consumer stocks can ensure the stability of your larger portfolio, especially if we are entering a period of intensified market fluctuation.
Best basic consumer stocks in 2021
What are the current basic consumer stocks? There are many to choose from, but here are the top five:
Costco Wholesale (COST)
Although Costco is not a producer of consumer commodities, it is widely known as the leading distributor of consumer commodities. Membership fees guarantee a reliable customer base, which may partly explain how the company managed to withstand the 2020 pandemic. In December 2020, Costco offered investors a basic dividend of $ 10 per share.
The Kroger Co (KR)
In addition to the national supermarket chain, Kroger covers its shelves with its own food products. According to Barron reports, despite some weak expectations about stocks, it could turn out to be a big investment in the coming months, especially given its success in the digital sales division.
General Mills (GIS)
General Mills is known for cereals such as Cheerios and Lucky Charms. Recently, the company has experienced inflation-related success, which has led to a considerable drop in stock prices. However, given the company’s strong history, this can be an opportunity to invest in a company with historically stable values.
While you may be familiar with its extensive line of beverages, you may not be aware that the company also owns the Frito-Lay, Quaker and Tropicana, Gatorade beverage brands. They also acquired Rockstar Energy in 2020 and SodaStream in 2018. Consequently, they are an industry leader in home soft drink. These acquisitions make the company stronger than ever, making it one of the top core consumer stocks of 2021.
Investing in garbage doesn’t seem like everyone’s first choice, but Reynold’s line of garbage bags and storage bags has continued to be a staple for the consumer, regardless of market performance. Their products are not only basic for the home, but they have also introduced organic consumer products that have only encouraged the support of customers and investors.
Growing basic consumer stocks
There are other basic consumer stocks that we anticipate will experience some growth next year. This includes:
Procter & Gamble (PG)
Procter and Gamble products include brands such as Tide, Gillette and Crest. The company has undergone some restructuring in recent years and is poised to launch some innovative products such as the non-toxic insect repellent Zevo. This may explain why the company experienced growth during the 2020 pandemic and may also mean that the company will continue to grow in the coming days.
Nestle’s success is seen in its strong product line, including Gerber baby food, Purina pet products and Stouffer frozen foods. The company has also been a strong competitor in the coffee market with its Nespresso machine and gourmet style pods. Unlike other companies that have delved into the diet food niche, Nestle has kept pace with consumer tastes and could be on the verge of seeing a sharp rise as the market bounces back from the recent quarantine.
Target Corp. (TGT)
Target’s retail chain is located in 50 states and locations around the world. As the economy recedes from quarantine, we could expect this brick chain to grow and grow. In fact, this is one of the few places investors can find a basic dividend, as investors will likely receive 90 cents per common share this year.
Before you laugh at the idea of investing in Twinkies, consider the recent success the company has seen. It may have been stressful consumption over the last year, but Hostess has experienced an increase in sales and success, which seems to be maintained even as restrictions are lifted and states. It is true that the company has filed for bankruptcy twice since 2000 (2004 and 2012), but it looks like they are turning around and hoping to grow in the near future.
Boston Beer Co. Inc. (SAM)
You may already be familiar with Sam Adams beer, one of several products brewed by this brewer. With craft beer surpassing the popularity of traditional beers, Boston Beer Co. it could continue to be successful as younger generations come of age and make craft beer a regular part of their shopping list.
Want more options? Stick with Gorilla Trades
These basic consumer actions can help you consolidate your portfolio, which can help you consolidate if society enters a volatile market, as some experts predict. But if you want a fuller range of stock selections, consider becoming a member of Gorilla Trades.
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