Best Stocks that Deal in Food

Always something we can relate to, food will be a perennial good investment, whether it is a venue like McDonald’s (NYSE:  MCD), paying out over 3%, or a simple commodity like corn (NYSE:CPO ),paying out slightly over 1% returns but growing steadily.  Coca-Cola (NYSE:KO) and Pepsi  (NYSE:PEP)have been solid growth stocks for years.  The world is addicted to this stuff, and they know it, but they keep watching the market and changing with the times– like the retro formulas made with “pure cane sugar” offered as the new healthier drink, along with myriad bottled waters, etc.  And the stress-relief-foods like Frito-Lay products?  Owned by Pepsico!

You may want to look at the distributors of food, such as Cal-Maine (NYSE:CALM).  The bigger and better-known WalMart  (NYSE:WMT) just keeps delivering dividends over 2% and shows no sign of shrinking.  And more old stand-bys that will always do well include Campbell’s Soup (NYSE:CPB) and Heinz (NYSE:HNZ) who are highly diversified and branched far out from their original simple canned soups and catsup.  Their dividends aren’t exciting, more like 1%, but they are well-established and conservative companies that pay regularly, raise their returns fairly regularly and will always be in the world’s pantries.

Wholesalers like BJ’s (NYSE:BJ) and Costco (NYSE:COST) are reporting very healthy sales and their offerings fit the general economy of sticking to basics and finding lower prices for foods and household budgets.  This trend will only increase, as these clubs have proven records.  Even the Family Dollar Stores (NYSE:FDO ) have increased their grocery lines and are doing quite well these days, with a sharply rising chart, and yielding over 1%, due for a raise.

As economic times have been rather trying, another sector is alcohol, which seems to ease the pain a bit.   Look at Diageo, importers of spirits and wine (NYSE:DEO) and not to forget beer – Anheuser-Busch (NYSE:BUD).  These seem to be part of the general recovery, or at least therapeutic, trend this last year or so.

Kid-oriented – oh, really, we all love cereals – staples like General Mills (NYSE:GIS) may fluctuate with weather and crops, but are widespread enough to deal with climate issues, and are constantly growing and paying investments over time.  We must look at the durable longevity of these companies, as opposed to the riskier high-yield flash-in-the-pan trends, dealing in food is here to stay.  Food is indeed a reliable investment, as one of the basics in life.