Consumer staples are a good source of stable dividends and steady yearly growth
Consumer staples stocks are a good source of stable dividends and steady growth from year to year. Businesses that sell products or services that consumers need in everyday life tend to have steady growth, even with the economy is in a recession.
These companies are then able to provide dividends to shareholder, often raising them every year. The ability to withstand economic downturns is one of the prime reasons that the consumer staple sector is tied for the highest number of names in the Dividend Aristocrats index.
Investors who look at the sector as boring can miss out on both the growth and the income that these stocks provide.
This article originally appeared at InvestorPlace.