Retirement Stock Portfolio: 5 Consumer Stocks To Consider

In this article, we discuss the 5 consumer stock options to add to your retirement portfolio. If you wish to see more such stocks within our list, you can go directly to read the Retirement Stock Portfolio: 12 Consumer Stocks To Consider.

5. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Holders: 61

Founded in 1892, The Coca-Cola Company (NYSE:KO) stands as a renowned American multinational corporation celebrated for its iconic beverage, Coca-Cola. In addition to 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 12, the company distributes a quarterly dividend of $0.46 per share, resulting in a strong yield of 3.43%.

Backed by a notable track record of consistent dividend increases spanning six decades and a business model resilient to economic downturns, The Coca-Cola Company (NYSE:KO) has garnered heightened attention from both individual and institutional investors. By the close of the second quarter, out of the 910 funds monitored by Insider Monkey, 61 hedge funds had stakes in the company. Most notably, Warren Buffett emerged as the largest investor, maintaining a significant stake valued at $24 billion in The Coca-Cola Company (NYSE:KO).

4. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 67

Costco Wholesale Corporation (NASDAQ:COST) operates an international network of membership warehouses, predominantly under the “Costco Wholesale” banner, offering quality, brand-name products at significantly reduced prices compared to conventional wholesale or retail sources.

The company currently offers a quarterly per-share dividend of $1.02, resulting in a dividend yield of 0.72% as of October 18. Impressively, Costco Wholesale Corporation (NASDAQ:COST) has consistently elevated its dividends for the past 19 years, underscoring its dedication to rewarding shareholders.

Insider Monkey’s data reveals that, by the close of Q2 2023, 67 hedge funds held long positions in Costco Wholesale Corporation (NASDAQ:COST), compared to 63 funds in the preceding quarter. Among these stakeholders, Ray Dalio’s Bridgewater Associates stands out as one of the most prominent, with 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 the hamlet of Purchase, located within Harrison, New York, stands as a prominent American multinational corporation in the food, snack, and beverage industry. Renowned for its strong financial foundation, this beverage industry leader has maintained an impressive streak of dividend growth spanning 51 years. Currently, it disburses a quarterly dividend of $1.265 per share, resulting in a dividend yield of 3.11% as of October 18.

As of the conclusion of Q2 2023, PepsiCo, Inc. (NASDAQ:PEP) was included in 68 hedge fund portfolios, according to data from Insider Monkey’s database. The most significant stakeholder was Fundsmith LLP, retaining 6.6 million shares of this New York-based beverage manufacturer, with a total value of $1.2 billion. Notably, over the past five years, the company’s shares have experienced an impressive surge of approximately 51%.

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 renowned global consumer goods corporation. Established in 1837 by William Procter and James Gamble, the company is celebrated for its wide-ranging portfolio of branded consumer packaged goods, which are distributed worldwide across various segments, including Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care.

At present, the company extends a quarterly dividend of $0.9407 per share, translating to a dividend yield of 2.54% as of October 18. Significantly, The Procter & Gamble Company (NYSE:PG) has consistently elevated its dividends for an impressive 67 consecutive years, reinforcing its reputation not only as a leading dividend aristocrat stock but also as a reliable retirement investment option.

Insider Monkey’s second-quarter database indicates that 74 hedge funds held optimistic positions in The Procter & Gamble Company (NYSE:PG), a slight reduction from the 75 funds in the prior quarter. Terry Smith’s Fundsmith LLP 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 powerhouse known for its extensive network of hypermarkets, discount department stores, and grocery outlets strategically placed across the United States. The company’s headquarters are situated in Bentonville, Arkansas.

On August 17, Walmart Inc. (NYSE:WMT) released its Q2 non-GAAP EPS, revealing a figure of $1.84, which exceeded Wall Street estimates by $0.13. Additionally, the company’s Q2 revenue reached $161.63 billion, showcasing a significant 5.9% year-on-year increase and surpassing market expectations by $2.35 billion.

In Q2 2023, Walmart Inc. (NYSE:WMT) attracted substantial interest from hedge funds, with 81 hedge funds securing positions in the company, according to Insider Monkey’s database. The collective 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.

You can also take a look at 12 Best European ETFs to Buy and 12 Best Streaming and TV Stocks To Buy Now.