July 16, 2021, 11:16 a.m. EDT

Best Consumer Staples Stocks To Buy In July 2021? 5 To Know

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Jul 16, 2021 (StockMarket.com via COMTEX) -- 5 Top Consumer Staples Stocks To Watch Right Now

Consumer staples stocks held up well during the COVID-19 pandemic, and for good reason. Even though some of the best consumer staples stocks haven't been leading the charge when the stock market kept hitting new highs, they have increasingly occupied the minds of investors as of late. With many of the stay-at-home trade names seemingly running out of gas, would repositioning your cash in consumer staples be a good strategy now?

While the clear reason for an investment in consumer staples is the stability that comes with it, there are also a couple of other reasons to consider. For one, If you're worried about inflation and interest rate uncertainty, consumer staples stocks can provide a great long-term hedge. That's because these companies often have the ability to pass along the increasing costs to their customers.

More importantly, they're the kind of goods you will buy regardless of the state of the economy. Not to mention the amount you spend on them is also relatively constant. Sure, they might not be the shiniest investment in the stock market today , but these stocks could calm your nerves when the stock market wobbles. If you're looking for undervalued stocks to buy, do you have these top consumer staples stocks on your watchlist right now?

Top Consumer Staples Stocks To Watch Right Now

PepsiCo

PepsiCo just offered investors another reason to invest in PEP stock. Apart from being a consumer staples stock, it might soon strengthen its position as one of the top dividend stocks to buy. That's because the consumer giant just announced a quarterly dividend of $1.075 per share, representing a 5% increase year-over-year. The news of the dividend hike came after the company reported a blowout quarter as restaurants reopened.

From its fiscal second-quarter report this week, PepsiCo earned $2.37 billion, $1.70 per share, on revenue of $19.2 billion for the three months ending in June. The company also raised its 2021 outlook on sales and profitability, making an even stronger case for PEP stock. In addition to soda, following the recent partnership with Beyond Meat ( NASDAQ: BYND ) and the acquisitions of Frito-Lay and Quaker Oats, Pepsi is now the world's third-largest food company. Considering its consistent dividend yield and strong revenue growth, would you say PEP stock has more growth potential than it seems?

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Walmart

Walmart is no doubt a household name and is the largest retailer worldwide. Through its massive network of hypermarkets spanning 24 countries, the company continues to dominate the retail space. Recently, Walmart-backed Indian e-commerce store Flipkart raised $3.6 billion in fresh funds. The retail giant is expected to hold around 75% stake in Flipkart after the funding exercise.

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