COST to KDP: Top 5 Nasdaq-listed consumer staples stocks to watch

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COST to KDP: Top 5 Nasdaq-listed consumer staples stocks to watch

 COST to KDP: Top 5 Nasdaq-listed consumer staples stocks to watch
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Highlights

  • Costco Wholesale Corporation (NASDAQ: COST) has a dividend yield of 0.6% and an annualized dividend of US$3.16.
  • PepsiCo, Inc’s (NASDAQ: PEP) dividend yield is 2.8%, and the annualized dividend is US$4.30.
  • The Kraft Heinz Company (NASDAQ: KHC) has a dividend yield of 4.28% and an annualized dividend of US$1.60.

Stocks have been volatile lately, with the Russia-Ukraine war, supply disruptions, and expectations of an aggressive rate hike by the Federal Reserve posed a significant headwind for the market. The central bank is expected to announce its first rate hike after its conclave on Wednesday. While most stocks retreated amid the Ukraine crisis, energy shares saw robust gains with skyrocketing oil prices that hit a record high of above US$130 per barrel last week.

Against this backdrop, the consumer staples sector has been seen as a haven. One primary reason for their stability is the constant demand. These companies produce daily essentials like food, beverage, personal hygiene products, and other essential household goods.

Here we discuss five such companies worth exploring amid a topsy-turvy market.   

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Costco Wholesale Corporation (NASDAQ: COST)

Market Capitalization: US$233 billion 

Closing price on March 11, 2022: US$527.42

Costo is a warehouse club company based in Issaquah, Washington. It offers attractive discounts to members. It had 815 stores at the end of 2021. More than 75% of its stores offer fuel besides other essential products. Its warehouses average around 146,000 square feet.

For the second quarter ended February 13, 2022, its net sales increased by 16.1% to US$50.94 billion compared to US$43.89 billion in the same quarter the previous year.  

The net income came in at US$1,299 million or US$2.92 per diluted share compared to US$951 million or US$2.14 per diluted share in Q2, 2021.

It has a dividend yield of 0.6% and an annualized dividend of US$3.16. The retail chain has a forward P/E for one year of 40.70.  

Its stocks traded in the price range of US$571.49 to US$322.38 in the last 52 weeks.

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(Top 5 Nasdaq listed consumer staples stocks to watch when inflation spikes?)

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PepsiCo, Inc. (NASDAQ: PEP)

Market Capitalization: US$216.8 billion 

Closing price on March 11, 2022: US$153.73

It is one of the world’s largest food and beverage companies. PepsiCo has a presence across all continents. It is headquartered in Purchase, New York. The snacks and beverage company makes products, such as Mountain Dew, Doritos, Ruffles, and Lays.

The company will announce its first-quarter financial results on April 26, 2022.

 For the fiscal year ended December 25, 2021, its revenue was US$79.47 billion compared to US$70.37 billion in FY 2020. It posted a net income of US$7.6 billion or US$5.49 per share diluted compared to US$7.12 billion or US$5.12 per share diluted in the previous fiscal year.

It has a dividend yield of 2.8% and an annualized dividend of US$4.30. PEP has a forward P/E for one year of 22.94. Its stock price ranged from US$177.24 to US$131.41 in the last 52 weeks.

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Mondelez International, Inc. (NASDAQ: MDLZ)

Market Capitalization: US$83.2 billion 

Closing price on March 11, 2022: US$59.12

The Chicago, Illinois-based Mondelez is a leading snack company. It sells biscuits, chocolate, grocery items, etc. Its famous brands include Oreo, Cadbury, and Halls. 

For fiscal 2021, it posted net revenue of US$28.72 billion, up 8% from the previous year’s revenue of US$26.58 billion. The net income attributable to the company was US$4.3 billion or US$3.04 per diluted share against US$3.56 billion or US$2.47 per diluted share in fiscal 2020.  

Most of its revenue comes from Europe. Biscuit and Chocolate segments contribute the highest revenue. It has a dividend yield of 2.37% and an annualized dividend of US$1.40. Its forward P/E for one year is 19.32. The stocks 52-week high and low were US$69.47 and US$56.24.

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Keurig Dr Pepper Inc. (NASDAQ: KDP)

Market Capitalization: US$52.65 billion 

Closing price on March 11, 2022: US$36.81

Keurig Dr Pepper is North America’s third-largest nonalcoholic beverage company. It’s headquartered in Burlington, Massachusetts. 

The company reported strong fourth-quarter and full-year results, netting US$12.68 billion in revenue for the fiscal year ended December 31, 2021. The full-year revenue increased by 9.2% YoY. Its net income came in at US$2.15 billion or US$1.50 per share diluted in FY 2021 compared to US$1.32 billion or US$0.93 per diluted share in FY 2020.

It has a dividend yield of 2.04% and an annualized dividend of US$0.75. The company has a forward P/E for one year of 21.78. Its stocks traded in the price range of US$39.35 to US$32.44 in one year.

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(Top 5 Nasdaq listed consumer staples stocks to watch when inflation spikes?)

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The Kraft Heinz Company (NASDAQ: KHC)

Market Capitalization: US$46.06 billion 

Closing price on March 11, 2022: US$37.36

Pittsburgh, Pennsylvania-based Kraft Heinz is one of the largest food and beverage manufacturers in North America. Its products are sold in over 190 countries.

The company booked net sales of US$26.04 billion in the fiscal year ended December 25, 2021, compared to US$26.19 billion in FY2020. Its net income rose by about 184% to US$1,012 million or US$0.82 per diluted share against US$356 million or US$0.29 per share diluted in FY2020.

It has a dividend yield of 4.28% and an annualized dividend of US$1.60. KHC has a forward P/E for one year of 14.15. Its stocks traded in the price range of US$44.95 to US$32.78 in the last 52 weeks.

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Bottomline

Despite high inflation, the demand for consumer staples remains relatively stable. However, investors should apply due diligence before investing in the stock market.

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