These Consumer Staples Stocks Pay Up to 7%
If you’re like me, you’ve probably noticed today’s
rock-bottom yields.
In a bid to prop up the economy, the Federal Reserve has
slashed interest rates to record lows. That has meant plunging payouts from
corporate bonds, Treasury notes, and other fixed-income investments.
All of which is bad news for savers. Today, even a six-figure
nest egg will only generate a meager amount of interest income. And thanks to
the COVID-19 pandemic, analysts don’t expect yields to rise anytime soon.
One possible solution: consumer staples stocks.
Investors have long prized these stocks for their reliable,
recession-proof cash flows. Even in an economic downturn, people still need to
buy food, brush their teeth, and clean their homes.
But the best part? Consumer staples stocks are often the
highest-yield investments around.
Most of the companies in this sector operate in mature
industries with limited growth prospects. That means management teams don’t
need to invest much in the way of new properties, plants, and equipment. As a
result, almost all of their profits can flow straight to their shareholders.
To help get you started, I’ve highlighted a handful
high-yield consumer staples stocks below.
As I always like to make clear in these types of articles,
the list below doesn’t constitute a series of “buy” recommendations. It does,
however, serve as a great starting point for further research. Just be sure to
do your own homework before picking any specific stock.
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