Consumer Staples Stocks

The Consumer Staples sector covers makers and sellers of everyday essentials — food and beverages, household and personal-care products, and the retailers that distribute them. Because demand for these goods is steady regardless of the economy, staples are classically defensive.

They tend to hold up better in downturns and are favored for reliable earnings and consistent dividends. The trade-off is slower growth than cyclical sectors. Investors watch input costs, pricing power, and brand strength when evaluating staples companies, since the ability to pass higher costs on to consumers is a key advantage.