The market is constantly changing, which usually means that investing can be risky business. However, there are always opportunities for those who keep their wits about them and look for the best stocks to buy in a given market. The perfect example of this was seen during the Great Recession of 2008, when some sectors crashed while others prospered. So which stocks are worth buying now? There are plenty of solid options for long-term investors looking to invest in companies that sell business supplies. These companies supply everything from bar soap and toilet paper to housekeeping supplies and cleaning chemicals. Read on to learn more about the top four business supply stocks you should buy right now.
Procter & Gamble Co.
Procter & Gamble has been in business for over 160 years. Its best known brands are Tide, Gillette, Crest, Tide, Pampers and Herbal Essences. The company is also the world’s largest consumer goods company by sales, generating $79.9 billion annually. P&G has a market capitalization of $230 billion and its shares trade at around 25 times the company’s expected earnings for the next 12 months. P&G has a strong track record of increasing its dividend, which currently yields 2.6%. Over the past 10 years, P&G stock has generated a total return of 1.6% per year, which is lower than the S&P 500 total return of 7.5% per year over the same period. The company faces fierce competition and has struggled with slowing sales growth in Asia. Yet P&G is a cash-rich company with a dividend that has grown rapidly since the start of the Great Recession.
Scotts Miracle-Gro Co.
Scotts Miracle-Gro is a leading producer and marketer of agricultural products and lawn and garden supplies. The company has a market capitalization of $21 billion and trades at around 35 times the company’s expected earnings for the next 12 months. Scotts has increased its dividend for 13 consecutive years and currently yields 2.3%. The company’s stock price has risen 14.2% per year on average over the past 10 years, about three times the S&P 500’s annualized total return of 4.3% over the same period. Scotts has increased earnings for the past four consecutive years and its profit margin of 17.9% is well above the S&P 500 average. The company’s strong position in the agriculture and turf markets and from the garden has put it in a good position to benefit as the world’s population grows and climate change leads to an increased need for plant growth.
Kimberly Clark Corp.
Kimberly-Clark is a leading manufacturer of consumer paper products. The company has a market capitalization of $36 billion and trades at around 21 times the company’s expected earnings for the next 12 months. Kimberly-Clark has increased its dividend for more than 40 consecutive years and currently yields 3.1%. Shares of the company have risen 12.8% per year on average over the past 10 years, about three times the S&P 500’s annualized total return of 4.3% over the same period. Kimberly-Clark has grown profits for the past five consecutive years and has a long history of paying a stable dividend. The company’s long-term history of increasing its dividend is a sign that Kimberly-Clark has a good chance of continuing to increase its payout in years to come.
Stock up: ConAgra Foods Inc.
ConAgra Foods is a leading manufacturer and marketer of packaged foods. The company has a market capitalization of $31 billion and trades at around 19 times the company’s expected earnings for the next 12 months. ConAgra has increased its dividend for the past 10 consecutive years and currently yields 2.6%. Shares of the company have risen 12% per year on average over the past 10 years, about three times the S&P 500’s annualized total return of 4.3% over the same period. ConAgra has grown its revenue for the past five consecutive years. The company also has a strong balance sheet and has regularly repurchased shares over the past decade. ConAgra offers a number of products that are likely to see increased demand due to growing consumer health and wellness concerns.
At the end of the line
There are always stocks to buy, even in uncertain market conditions. The best stocks to buy are those that increase their income and are also able to consistently increase their dividends to investors. The four stocks discussed above all fit this description, and they are also stocks that are currently trading at reasonable prices. From the strong brand portfolio of Procter & Gamble to the growth of Scotts Miracle-Gro in the lawn and garden business, these stocks could have solid upside potential in the years to come.
