GO
Loading...

Consumer Stocks: A Staple for Your Portfolio

Monday, 20 Oct 2008 | 11:53 AM ET

Linda Bolton-Weiser, managing director at Caris & Company, says consumer staples stocks are the way to go. She expects earnings growth in the sector to be relatively strong at "around 10 percent on average."

Spotlight on Consumer Staples
Investment opportunities in the sector, with Linda Bolton Weiser, Caris & Company managing director

"I think that many, if not all, are going to meet earnings expectations for the third quarter," she said. "If that’s the case, it will be interesting to see how these stocks behave...[some of the companies] have strong balance sheets, strong cash flow, and some of them are looking very inexpensive right now."

Plus, the sector tends to outperform other parts of the market during recessions, she says.

Recommendations:

Proctor & Gamble

Colgate-Palmolive

Estee Lauder

Avon Products

Alberto Culver

"Earnings growth is pretty stable for these companies regardless of the economy…The average dividend yield is about 2 to 2.5 percent," said Bolton-Weiser.

____________________________
More from CNBC.com:

  • Is it really time to buy consumer staples?

____________________________

Disclosure:

Bolton-Weiser does not own stocks from any of the companies mentioned above.

Disclaimer

  Price   Change %Change
AVP
---
CL
---
EL
---
PG
---

Featured