Why Were Dividend King Stocks Coca-Cola, PepsiCo, and Procter & Gamble Falling After the Election?

From Nasdaq: 2024-11-13 05:17:00

The consumer staples sector has slowed with notable absentees from the post-election rally like Coca-Cola (NYSE: KO), PepsiCo (NASDAQ: PEP), and Procter & Gamble (NYSE: PG). Despite record profits in 2024, Coke’s unit case volumes declined, while Pepsi faced volume declines across major categories. P&G showed weak sales growth but maintains strong pricing power.

The three consumer staples giants missed out on the post-election rally due to disappointing earnings. Sectors like financials and industrials surged post-election, benefiting from new administration policies. Coke, Pepsi, and P&G are ultra-safe Dividend Kings offering consistent dividends and reasonable valuations. Investors should focus on long-term gains rather than short-term market movements.

While Coke, Pepsi, and P&G may underperform in the near term, their solid track records make them balanced buys for risk-averse investors. These companies offer passive income and stability for retirement portfolios. It’s important to avoid being swayed by short-term market trends and focus on long-term investment strategies.



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