Consumer Staples Retailers Steadily Hold Top Ratings

This has been an interesting year to say the very least. The markets have been impacted in oh so many ways. Consumer behaviors changed and we saw more people start to trade in the stock market than ever before.

Since the markets crashed in March, many have seen those losses steadily come back.

No sector saw bigger gains than tech. And that’s not surprising. Technology became even more important in our lives than it already was, and some of those stocks saw triple digit-gains.

But even now, the uncertainty isn’t over. One piece of positive news about the vaccine and the market rips higher … and the same happens in the other direction when something negative comes to light.

Today, I decided I wanted to take a look at what companies currently hold the highest ratings, and whether they had actually held that rating through this roller coaster of a year. I’ll admit that I wasn’t exactly shocked when I saw that retailers of consumer staples topped the list. 

Still holding strong as the highest rated company is Dollar General Corp. (NYSE: DG). The company has over 17,000 location in 46 states.

I spend a lot of time motorcycling around small towns here in Florida. Some of these towns require a bit of a drive to get to the nearest Winn Dixie or Publix … but most have a Dollar General.

I’ve mentioned the company many times in the past few months because it’s still the top-rated stock according to the Weiss Ratings. The company has held a “Buy” rating since the mid-2017 and has managed to stay in the “A”-range since April.

Next, we have Walmart Inc. (NYSE: WMT) and Costco Wholesale Corp. (Nasdaq: COST). Again, this isn’t incredibly shocking. Consumers are looking to make their dollar last longer. Plus, they want to get everything that they need in as few trips as possible to limit interactions.

Walmart has had a “Buy” rating since the middle of 2019 and continues to hold one today. Costco has held a buy rating since 2014. Both companies still have plenty of money to make in the next few months as we see if infection rates will continue to rise. And when you factor in holiday spending ... shareholders will see even more gains in their portfolios.

Last, but not least, is Church & Dwight Co., Inc. (NYSE: CHD). You might think you haven’t heard of them, but you have. It is the parent company of Orajel, Arm & Hammer, OxiClean and many other household brands.

Church & Dwight is a $4.15 billion company that’s been around since 1846 and it’s a monster in the consumer-packaged goods companies. It has many products that consumers are continuing to stock up on. The company has maintained its “Buy” rating throughout the year and has held a “Buy” rating since the beginning of 2018.

This is one of the biggest takeaways from the 2020 markets ... and it’s something that I’ve been pounding the table on for years. You want to make sure your portfolio includes recession resistant consumer staple focused dividend payers.

Will these be the ones to pay you triple-digit gains?

No.

But over the past year, shareholders have seen 37%, 22%, 27% and 26% gains. Plus, there were dividends on top of that. So, don’t go into 2021 thinking that the entire market will keep going straight up.

We’ll most definitely see more volatility in 2021, but by trusting the Weiss Ratings, you’ll have a market compass that will help guide you to the strongest picks.

Best,

Kelly Green