The Coca-Cola Company (KO), The Procter & Gamble Company (PG), The Kroger Co. (KR): How to Handle Market Volatility

Hold your groceries

In any economic environment, people will shop for groceries. Everybody needs to stock up on spaghetti noodles, canned beans, rice, vegetables, fruits, and etc. Anyone can relate to the basic necessity of life, which is food.

I believe that one of the most underrated defensive stocks right now is The Kroger Co. (NYSE:KR). This company operates supermarket chains that should sound familiar, like Fry’s, Ralphs, Smith’s, Scott’s Food & Pharmacy, City Market, and The Kroger Co. (NYSE:KR). The company operates 3,600 supermarkets across the United States. The stock currently has a 0.4 beta, which basically indicates that the company has less than half the volatility of the broader stock market.

The management team believes that it can sustain growth at an 8-11% rate over the long-term. The stock also compensates its investors with a 1.78% dividend yield and trades at a 12.2 earnings multiple, which is reasonable based on the future earnings growth.

Conclusion

These three companies have limited economic downside, pay dividends, and have shown reduced volatility. All three will grow earnings. Any bond investor looking for a safe-haven in the stock market should consider investing in The Coca-Cola Company (NYSE:KO), Proctor & Gamble, and The Kroger Co. (NYSE:KR).

The article How to Handle Market Volatility originally appeared on Fool.com and is written by Alexander Cho.

Alexander Cho has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola and Procter & Gamble (NYSE:PG). Alexander 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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