Consumer Staples

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What are 'Consumer Staples'

Essential products such as food, beverages, tobacco and household items. Consumer staples are goods that people are unable or unwilling to cut out of their budgets regardless of their financial situation. Consumer staples stocks are considered non-cyclical, meaning that they are always in demand, no matter how well the economy is performing. Also, people tend to demand consumer staples at a relatively constant level, regardless of their price.

BREAKING DOWN 'Consumer Staples'

Consumer staples can be a good option for investors seeking slow and steady growth. Companies that primarily sell consumer staples include Procter & Gamble, Kimberly-Clark and Phillip Morris. One can invest in consumer staples by purchasing the stocks of consumer staples companies or by purchasing mutual funds or exchange-traded funds that specialize in consumer staples.

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