Church & Dwight Co., Inc. (CHD), Hormel Foods Corporation (HRL) & Campbell Soup Company (CPB): Three Great Consumer Staples Stocks Flying Under The Radar

The Foolish bottom line

These stocks provide the best of what the consumer staples sector has to offer: reliable sales and profits, as a result of products that are sold no matter the condition of the broader economy. In turn, investors also receive those quarterly dividend payments that are so valuable to income investors.

It’s worth noting that each of these stocks carries a trailing price-to-earnings ratio that is near or exceeds 20 times, a level that is above the P/E ratio on the broader market. The S&P 500 Index currently trades for roughly 18 times earnings, meaning these stocks are slightly more expensive than the broader market.

However, these companies have smaller market capitalizations than their juggernaut competitors and predictable business models that justify their higher valuations.

In addition, Hormel Foods Corporation (NYSE:HRL), Church & Dwight Co., Inc. (NYSE:CHD), and Campbell Soup Company (NYSE:CPB) have extremely long histories of paying (and raising) payouts to shareholders. For investors interested in the consumer staples sector who are bored with the usual suspects, these under-the-radar, high-quality companies are worth a closer look.

The article 3 Great Consumer Staples Stocks Flying Under The Radar originally appeared on Fool.com.

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