In continuing with the mini-series from last week where I looked at the top stock sectors to own during a recession, today it is time to look at the consumer non-cyclicals. This is a group that does well regardless of the economic situation which is precisely what we are looking for when the economy is in flux.
Top 5 Consumer Non-Cyclicals
- PepsiCo (NYSE:PEP) GrowYourFunds RSS Subscribers shouldn't be surprised to see this one at #1. PEP has a great CEO who knows what she is doing with growing this company internationally. The company has successfully integrated several huge snack brands into its portfolio and the results are really starting to show.
- Proctor and Gamble (NYSE:PG) Can you go wrong with a company like Proctor and Gamble? The company is about as steady as they come, and they are in a huge number of businesses that are not cyclically at all. A rising dividend yield of 2.38% doesn't hurt this one either.
- Kellogg Company (NYSE:K) This cereal and convenience food maker is a nice and steady way to let a recession play itself out. History tells us that people don't stop eating their cereal in recessions, and K is actually trading cheaper than historical averages.
- The Coca Cola Company (NYSE:KO) I know I know, this makes two major beverage distributors, but what can I say, both of them are great companies. Warren Buffett has made a fortune holding Coke through thick and thin. While you shouldn't expect to be able to become a millionaire, the stock is a great one to hang on to.
- Tupperware Brands (NYSE:TUP) This is a company that has gotten its act together of late. TUP guided estimates much higher for 2008 just today, and it seems this is no fluke. Although it would have been nice to be in this stock before this run, the company is solid and should do well in the long run.
Consumer non-cylicals are made up of many different kinds of companies, but the common denominator is that they are just what the name would imply, not cyclical. Looking for the top companies in this sector that have consistent earnings growth and solid dividend yields is a great way to withstand an economic recession.
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