Target Corporation (TGT), Polaris Industries Inc. (PII), American Express Company (AXP): 3 Reasons to Eye Consumer Goods

S&P’s Capital IQ, which recently chose Target Corporation (NYSE:TGT) as its stock of the week, stated that despite near-term headwinds related to higher taxes, delayed tax refunds, and difficult weather, it expects consumer spending to accelerate this year and again in 2014. The expected acceleration couldn’t have come at a better time for Target Corporation (NYSE:TGT). Target Corporation (NYSE:TGT) recently raised its quarterly dividend to $0.43, an increase of about 9%, and I expect Target Corporation (NYSE:TGT) to climb higher after its second quarter consumption data is released.

For yet another way to profit from consumer goods, consider an ETF. According to US News, the best fund in the consumer goods sector is the Vanguard Consumer Staples Index Fund ETF. Starting the year near $90, the stock now sell for around $103.

Further, in the past 10 years it returned 60% more than the S&P 500. Its expense rate is 90% lower than the average expense ratio of funds with similar holdings and its low fee rate of 0.14% is another great reason this ETF was chosen the best in its class.

You propel America forward

Remember that without your monetary contributions, the U.S. economy would stall. Whether you’re buying durable goods (a tie for dad), non-durable goods (the gas you purchased on your way to the mall to buy a tie for dad), or a service (getting the tie dry-cleaned), you are the reason the consumer goods sector is on fire.

And regardless of which income class you’re in, look to your own spending habits for a glimpse of the near future. Of course, adjust investment strategies accordingly, but remember that consumer goods are hot right now, and based on the data, should stay that way.

Marie Palumbo has no position in any stocks mentioned. The Motley Fool recommends American Express and Polaris Industries. Marie is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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