This has been an unusual start to 2022 in the stock market. Glamorous growth name out. There are fixed value names.
After a sharp recovery in the S&P 500 last month, rising Russia-Ukraine tensions and even more harshness have pushed the Fed benchmark down 6% year-over-year. But with the price share of S&P flats for the year, there continues to be a big gap between price and rising stock performance.
Historically, one of the best places for market storm weather has been the personal care products industry. Companies that sell well-known hygiene, beauty and nutrition items pay good rent in volatile situations because consumer demand is relatively stable. Many also pay dividends which can help reduce the impact of the market downturn.
Lately, home appliance manufacturers, like everyone else, have been facing inflationary pressures. But while the demand for our daily necessities is not resilient, price increases are largely being exploited by buyers. This makes these three family-owned stocks proprietary for the current market environment.
What is a good protective stock?
Church and Dwight (NYSE: CHD) Won the award for the most stable family and personal products company. Its other peer group stocks have not run out in each of the last 14 years. From 1% year to date, that trend may continue.
Church and Dwight’s portfolio of popular consumer brands that support the amazing upward trajectory of 1982 stocks. From Arm & Hammer and Oxyclin to Oracle and Waterpick, customers don’t have to worry about reaching out to the company’s products regardless. Economic background. You name it 8 the 1987 crash, the dot com bubble, the 2008-09 financial crisis, and the epidemic — Church & Dwight not only survived but improved through it.
Fixed sales volume translates into strong cash flows that enable Church and Dwight to reinvest in business and reward shareholders. Dividends, though a modest 1%, have increased in each of the last 27 years. Even better, the board has approved a $ 1 billion share repurchase program that will provide negative protection for the rest of the year.
Church and Dwight shares are not cheap at 31x trailing earnings. But like its products, it’s a price to pay because of the company’s track record in good times and bad.
Is Procter & Gamble a relatively safe stock?
Procter & Gamble (NYSE: PG) Has been around since 1837, which speaks to the durability and competence of the company as a safe defensive game. Along the way it has a portfolio of well-known consumer brands including Luvs Diapers, Tide Laundry Detergent, Charmin Toilet Paper, Head & Shoulder Shampoo and Vix Cold & Flu Relief. You may have left a lot of Procter & Gamble products in your shopping cart without even knowing who owns it.
The company’s huge product empire is the engine that drives some of the highest quality financial statements in the industry. Perennial health as operating cash flow profitability. Proctor & Gamble has exited 20 11.5 billion in cash since 2021. It carries sophistication and flexibility, with strong interest coverage ratios, even in the most difficult economic conditions.
As a result of its continued financial position, Procter & Gamble has increased its dividends for 65 consecutive years. The stock has lost some of its share in recent years with the outbreak of epidemic headwinds but has repeatedly returned to new heights. In terms of low-risk ways to grow long-term portfolios and generate revenue, Procter & Gamble is on top of its big cap peers.
Is Colgate-Palmolive a low-risk stock?
Colgate-Palmolive (NYSE: CL) Easily recognized for its name brands, but there is much more to where toothpaste and dish soap come from. Ajax Cleaner, Murphy’s Oil Soap, Speed Stick Deodorant and Hill’s Pet Food are some of the company’s diverse consumer brands. It is this diversity with global diversity that creates solid cash flow year after year.
Stocks may seem like the paint dries up from $ 60 to $ 80 over the last 10 years to investors who are accustomed to rapid growth. However, this is exactly what you would expect from a conservative household product name. It has been virtually ineffective in the significant downturn throughout its trading history, reflecting its modest but predictable growth metrics and basic quality.
With about 40% share of the global toothpaste market, Colgate-Pammolive will continue to provide for shareholders as long as people are brushing their teeth. A growing pet nutrition business and reliable income from the home and personal care department make the stock a sure bet. Thanks to the increase in pet adoption and cost in terms of Covid, Hill’s Science Diet has become a driver of increasingly significant growth.
Meanwhile, management is investing in the company’s digital capabilities to change the preferences of consumers worldwide. E-commerce sales grew 27% last year. They will continue to be a key part of the strategy, proving that you can really teach an old dog new techniques.
Colgate-Palmolive prides itself on a 59-year dividend growth streak and currently yields 2.3%. It won’t clean up a stock investors, but it can create bright smiles in rough times.