Skip to Content
Fund Spy

3 Funds Likely to Suffer if Consumer Staples Falter

With high stakes in the sector, headwinds could be on the horizon for these funds.

Mentioned: , , , , , , , ,

A version of this article was originally published in the April 2017 issue of Morningstar FundInvestor. Download a complimentary copy of FundInvestor here.

For quite a while, consumer staples companies were favored by investors. One reason: Their dividends were relatively high and seemed safe because of the companies' sound financial underpinnings. With fixed-income payouts paltry or near zero, dividends of even 3% gained quite an allure. Investors also figured that in shaky economic times, people might delay buying new cars and governments might slow construction spending, but people would still drink beer, clean their houses, and buy toothpaste.

Gregg Wolper has a position in the following securities mentioned above: UL. Find out about Morningstar’s editorial policies.