In this article, we discuss the 5 best FMCG stocks to buy now. If you want to go through our industry analysis you can see the 13 Best FMCG Stocks To Buy Now.
5. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 61
Established in 1892, The Coca-Cola Company (NYSE:KO) is a renowned American multinational corporation celebrated for its iconic beverage, Coca-Cola. Beyond its flagship product, the company is extensively involved in the manufacturing, distribution, and promotion of a diverse array of non-alcoholic beverage concentrates, syrups, and notably, alcoholic beverages within the beverage industry.
During the first half of FY23, the company reported $4.6 billion in operating cash flow, with free cash flow reaching $4 billion for the same period. This underscores The Coca-Cola Company’s (NYSE:KO) robust cash generation capabilities, positioning it favorably to meet its commitments to shareholders in the upcoming quarters. As of October 28, the company distributes a quarterly dividend of $0.46 per share, resulting in a strong yield of 3.33%.
By the end of this year’s second quarter, 61 out of the 910 hedge funds that were part of Insider Monkey’s research had held a stake in The Coca-Cola Company (NYSE:KO). Out of these, the firm’s largest shareholder is Warren Buffett’s Berkshire Hathaway since it owns 400 million shares that are worth $24 billion.
4. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 67
Costco Wholesale Corporation (NASDAQ:COST) operates a global network of membership warehouses primarily under the “Costco Wholesale” brand, offering high-quality, brand-name products at significantly reduced prices compared to conventional wholesale or retail sources.
As of October 28, the company provides a quarterly per-share dividend of $1.02, resulting in a dividend yield of 0.75%. Costco Wholesale Corporation (NASDAQ:COST) has an impressive track record of consistently increasing its dividends for the past 19 years, highlighting its commitment to rewarding shareholders.
According to data from Insider Monkey, as of the end of Q2 2023, 67 hedge funds had long positions in Costco Wholesale Corporation (NASDAQ:COST), an increase from 63 funds in the previous quarter. Among these investors, Ray Dalio’s Bridgewater Associates is a prominent player, holding 807,709 shares valued at over $434.8 million.
RiverPark Advisors mentioned Costco Wholesale Corporation (NASDAQ:COST) in its Q2 2023 investor letter. Here is what the firm has to say:
“Costco Wholesale Corporation (NASDAQ:COST), founded in 1983, is the world’s third-largest retailer with 850 stores, $240 billion in revenue and 68 million members spread across North America, Europe, Asia, and the Southern Pacific Region. The company is known for its strong value proposition driven by high-quality low-cost offerings including a well-regarded private-label brand. Costco regularly ranks at the top of customer surveys related to brand trust, product price and quality, and all-around experience. Historically, 90% of the company’s shoppers renew their memberships, which generate more than 50% of operating income.
Through expanding market share, new store openings, increasing member productivity, and omnichannel expansion, we believe the company can grow revenues annually in the high single digit percentage range. This revenue growth should yield steadily growing margins and EPS growth in the low-to-mid-teens, which should drive shareholder returns in the same range.”
3. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 68
PepsiCo, Inc. (NASDAQ:PEP), headquartered in Purchase, New York, is a prominent American multinational corporation in the food, snack, and beverage industry. Known for its strong financial foundation, this leading player in the beverage industry has maintained an impressive streak of dividend growth spanning 51 years. Currently, it pays a quarterly dividend of $1.265 per share, resulting in a dividend yield of 3.17% as of October 28.
As of the end of Q2 2023, PepsiCo, Inc. (NASDAQ:PEP) was held in the portfolios of 68 hedge funds, as per Insider Monkey’s database. Fundsmith LLP was the largest stakeholder, with holdings of 6.6 million shares in this New York-based beverage manufacturer, valued at $1.2 billion. Remarkably, the company’s shares have shown significant growth of around 51% over the past five years.
2. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 74
The Procter & Gamble Company (NYSE:PG), headquartered in Cincinnati, Ohio, is a well-known global consumer goods corporation. Founded in 1837 by William Procter and James Gamble, the company is renowned for its extensive portfolio of branded consumer packaged goods, distributed worldwide across various segments, including Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care.
Currently, the company offers a quarterly dividend of $0.9407 per share, resulting in a dividend yield of 2.56% as of October 28. Notably, The Procter & Gamble Company (NYSE:PG) has consistently raised its dividends for an impressive 67 consecutive years, solidifying its position as a leading dividend aristocrat stock and a dependable retirement investment choice.
According to Insider Monkey’s second-quarter database, 74 hedge funds held positive positions in The Procter & Gamble Company (NYSE:PG), a slight decrease from the 75 funds in the previous quarter. Fundsmith LLP, managed by Terry Smith, emerged as the largest stakeholder in the company, with ownership of 4.84 million shares valued at $735.8 million.
1. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 81
Walmart Inc. (NYSE:WMT) is a prominent American retail giant known for its extensive network of hypermarkets, discount department stores, and grocery outlets strategically positioned across the United States. The company’s headquarters are located in Bentonville, Arkansas.
On August 17, Walmart Inc. (NYSE:WMT) reported its Q2 non-GAAP EPS, revealing a figure of $1.84, surpassing Wall Street estimates by $0.13. Furthermore, the company’s Q2 revenue reached $161.63 billion, representing a significant 5.9% year-on-year increase and surpassing market expectations by $2.35 billion.
In the second quarter of 2023, Walmart Inc. (NYSE:WMT) garnered significant interest from hedge funds, with 81 hedge funds establishing positions in the company, according to Insider Monkey’s database. The combined holdings of these hedge funds were valued at over $5.46 billion. Notably, investment firm D. E. Shaw emerged as the largest shareholder, boasting holdings valued at approximately $861.9 million.
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