This market niche goes by several names. Consumer stocks, consumer staples stocks, or consumer discretionary stocks are usually what you’ll find. But no matter how you refer to them, consumer stocks are some of the most well-known names in the world. We aren’t talking about the world as in the stock market today. We’re talking about brands that are known by the masses. What are consumer stocks?
These are stocks of companies that provide our necessities. Think about what you stock up on during pandemics or when there’s severe weather. Consumer staples stocks and consumer discretionary stocks can range from grocery store and home improvement stores to the actual products stocking their shelves. You might also consider things like fast-food restaurants as consumer stocks. In general, the goods we couldn’t live without and the companies selling them fall into this category.
Why Consumer Stocks?
When looking for the best consumer stocks to buy, fundamentals tend to take a front-seat for experienced investors. Warren Buffet is a big fan of consumer stocks. He likes to follow many trends but some of the most obvious trends lead to a number of the top consumer stocks in the market. For a guy who gets McDonald’s at least once a week and who loves drinking Coca-Cola, Buffett invests money into the things people can’t or don’t want to live without.
In addition, there are other things that appeal to investors when it comes to consumer stocks. Many of these companies also offer dividends. So where tech stocks and biotech stocks might attract investors for their volatility, consumer stocks offer more than just stock price appreciation. Just remember that the best consumer stocks offering dividends will have strong fundamentals and consistent growth.
5 Top Consumer Staple Stocks For Your August 2021 Watchlist
Could these stocks be a staple for your portfolio amidst the current market conditions?