In this article, we discuss the 5 safe consumer stocks for a retirement stock portfolio. If you want to read about some more consumer stocks, go directly to Retirement Stock Portfolio: 11 Safe Consumer Stocks to Consider.
5. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 69
Costco Wholesale Corporation (NASDAQ:COST) engages in the operation of membership warehouses. It is one of the best safe consumer stocks for a retirement stock portfolio. On November 2, Costco Wholesale announced the sales for the month of October 2022. The company said that its comparable sales in October grew 6 per cent, while e-commerce comparable sales were down 0.7 per cent, with net sales of $17.73 billion for the fiscal year 2022 ending in October with an increase of 7.7 per cent. Costco has consistently paid a dividend to shareholders for the past two decades.
On September 23, Truist analyst Scot Ciccarelli maintained a Buy rating on Costco Wholesale Corporation (NASDAQ:COST) stock and lowered the price target to $559 from $571, noting that the company’s core retail operations are becoming more profitable.
Among the hedge funds being tracked by Insider Monkey, Washington-based Fisher Asset Management is a leading shareholder in Costco Wholesale Corporation (NASDAQ:COST) with 2.6 million shares worth more than $1.2 billion.
In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Costco Wholesale Corporation (NASDAQ:COST) was one of them. Here is what the fund said:
“Portfolio gains were led by a diverse group of contributors. Also in consumer discretionary, Costco Wholesale Corporation (NASDAQ:COST), which operates a chain of membership-only big-box retail stores, continues to impress as it takes to share and becomes more relevant for the consumer even as the world opens up.”
4. The Procter and Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 69
The Procter and Gamble Company (NYSE:PG) provides branded consumer packaged goods worldwide. It is one of the top safe consumer stocks for a retirement stock portfolio. On October 19, Procter & Gamble posted earnings for the first quarter of 2022, reporting earnings per share of $1.57, beating market estimates by $0.02. The revenue over the period was $20.61 billion, up 1.3% compared to the revenue over the same period last year and missing market estimates by $240 million. The firm is one of the most reliable dividend players on the market with a history stretching back over six decades.
On October 20, Barclays analyst Lauren Lieberman maintained an Overweight rating on The Procter & Gamble Company (NYSE:PG) stock and raised the price target to $145 from $139, noting that the company’s fiscal first quarter results came in much better than feared.
At the end of the third quarter of 2022, 69 hedge funds in the database of Insider Monkey held stakes worth $4 billion in The Procter and Gamble Company (NYSE:PG), compared to 71 in the preceding quarter worth $5.5 billion.
3. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 72
PepsiCo, Inc. (NASDAQ:PEP) manufactures, markets, distributes, and sells various beverages and convenient foods worldwide. It is one of the premier safe consumer stocks for a retirement stock portfolio. On November 7, Pepsi said it was in collaboration with Hard Rock Cafe, a British-based multinational chain of theme restaurants, in which they hosted one of the topmost events with Afro and High Life musical performances with singers Stones and Bones. PepsiCo has an impressive dividend profile that goes back close to five decades.
On October 14, Barclays analyst Lauren Lieberman maintained an Overweight rating on PepsiCo, Inc. (NASDAQ:PEP) stock and raised the price target to $185 from $183, noting that the company’s beat and raise in the third quarter is firmly characteristic of its flexibility that screens all the more attractive in the current operating environment.
At the end of the third quarter of 2022, 72 hedge funds in the database of Insider Monkey held stakes worth $4.8 billion in PepsiCo, Inc. (NASDAQ:PEP), compared to 65 in the previous quarter worth $5.3 billion.
In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and PepsiCo, Inc. (NASDAQ:PEP) was one of them. Here is what the fund said:
“Also in the stable and predictable cash flow camp, though with a very different business model, global food and beverage company PepsiCo (NYSE:PEP) reported very strong organic growth in the first quarter, driven by healthy price/mix, and raised revenue guidance, while holding EPS guidance. Notably, its beverage business showed expanding margins.”
2. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 85
Johnson & Johnson (NYSE:JNJ) researches and develops, manufactures, and sells various products in the healthcare field. It is one of the elite safe consumer stocks for a retirement stock portfolio. On October 19, Bernstein analyst Lee Hambright maintained a Market Perform rating on Johnson & Johnson (NYSE:JNJ) stock and lowered the price target to $190 from $194, noting that the company reported strong third quarter results as sales grew 8.2% organic to $23.8 billion. The firm has paid a growing dividend to shareholders for the past sixty years.
Among the hedge funds being tracked by Insider Monkey, Camas, Washington-based firm Fisher Asset Management is a leading shareholder in Johnson & Johnson (NYSE:JNJ) with 5.9 million shares worth more than $967.3 million.
In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and Johnson & Johnson (NYSE:JNJ) was one of them. Here is what the fund said:
“Johnson & Johnson (NYSE:JNJ) is currently our largest position and a long-standing holding. The majority of the group’s sales come from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.
Here’s how JNJ make and spends a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopaedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics (…read more)
1. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 89
Home Depot, Inc. (NYSE:HD) operates as a home improvement retailer. It is one of the major safe consumer stocks for a retirement stock portfolio. On October 31, Citi analyst Steven Zaccone maintained a Buy rating on The Home Depot, Inc. (NYSE:HD) stock and lowered the price target to $340 from $348, noting that macro fears are high for hardline retail coverage heading into the third quarter earnings season. The company has an impressive dividend profile stretching back close to two decades.
Among the hedge funds being tracked by Insider Monkey, Camas, Washington-based firm Fisher Asset Management is a leading shareholder in The Home Depot, Inc. (NYSE:HD) with 8.2 million shares worth more than $2.25 billion.
In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and The Home Depot, Inc. (NYSE:HD) was one of them. Here is what the fund said:
“The Home Depot, Inc. (NYSE:HD) shares underperformed as continued solid fundamental results were outweighed by concerns about the impact rising mortgage rates may have on the housing market and general inflationary pressures potentially leading to a consumer spending slowdown. We view the long-term prospects and multi-year fundamental outlook as unchanged.”
You can also take a peek at 10 Growth Stocks with Upside Potential and 14 Best Agriculture Stocks To Buy Now.
