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Consumer Staples watch: Major U.S. food companies (GIS, K, CPB, POST, CAG) have been swept up in...

Consumer Staples watch: Major U.S. food companies (GIS, K, CPB, POST, CAG) have been swept up in a rush by investors to dividend-paying consumer staples (XLP) but the tide could be turning with Treasury yields higher and earnings reports from the group looking uninspiring. Rahul Sharma notes the higher exposure to emerging markets of companies like Coca-Cola (KO), Philip Morris (PM), and PepsiCo (PEP) looks appealing with Western shoppers increasingly focused on pricing and volume gains hard to come by.
Comments (8)
  • Always need to eat, recession or not. (KO), (PM), and (PEP) are all non-essentials. You don't need them.
    26 Jun 2013, 09:04 AM Reply Like
  • Michael , cigarettes are addictive & people do need to drint too. Coke & Pepsi are more than just sot drinks now.
    26 Jun 2013, 09:08 AM Reply Like
  • Well, I have lived a little over half a century without drinking Coke and smoking.
    30 Jun 2013, 10:57 PM Reply Like
  • You are not a good representation of the population.
    11 Jul 2013, 03:29 PM Reply Like
  • Michael, you are correct in stating that KO, PM, and PEP are all non-essentials. However, even in a severe recession most people can generally find a dollar or two for a momentary luxury. Big ticket items?--not so much.
    26 Jun 2013, 11:17 AM Reply Like
  • Coke and cigarettes are luxury??? If I have an extra dollar, I either save it, spend it on my girlfriend, or buy a donut.
    30 Jun 2013, 11:00 PM Reply Like
  • financial stability, Dividend compounding with minimal risk, I'll drink to that!
    26 Jun 2013, 11:29 AM Reply Like
  • "earnings reports from the group looking uninspiring" Wrong ... how about $KR up 50% in a year and we'll find out about $CAG tomorrow, but my money is on $CAG doing a little better than "uninspiring".
    26 Jun 2013, 02:57 PM Reply Like
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