While there is a spot in most investors’ portfolios for low cap or growth stocks, many of them prefer to invest more heavily in companies that they know and trust. These are big brand stocks that are veritable household names. Many have a long-standing reputation for excellence in their industry. Some even have a great reputation for holding dividends steady or increasing them slowly over the years. If you are looking for a great place to invest some of your hard-earned money, learning more about the top big brand stocks for this year is a great idea.
The Big Brand Stocks You Need to Know
There are many big brand stocks that you could consider investing in within the next few months. However, market conditions, political issues, and other factors may be creating a situation where some of these companies are expected to thrive in the next few years. If you are searching for great big brand stocks to invest in, take a closer look at some of these options.
1. Walt Disney (DIS)
When you think about Walt Disney, you may think about the most famous theme parks in the world. However, Walt Disney has more to offer in the entertainment industry than theme parks. For this reason, it is one of the top big brand stocks to watch this year. Walt Disney controls several major movie studios. These include Pixar, Marvel, Lucasfilm, Disney Animation, and Disney Pictures.
These studios had a combined revenue of almost $8 billion last year. This made Walt Disney a leader in the movie industry as well. The company has posted stellar profit numbers in recent years. While there was a slight dip in its numbers recently, the company is expected to rebound substantially in the next year.
2. Johnson & Johnson (JNJ)
If you are trying to decide whether to invest your funds in the healthcare industry, the pharmaceutical industry or the biotech industry, Johnson & Johnson is a great option to consider to get exposure in all three industries. This company ranks sixth in the world in biotech and healthcare and fifth in the world in pharmaceuticals. This is an established company with 130 years in the business. More than that, it invests an astounding $9 billion in research each year to ensure that it is at the forefront of innovations in these fields. You can rest assured that this is a company that remains poised for greatness in the future.
3. Procter & Gamble (PG)
Procter & Gamble is the name behind popular brands like Tide, Olay, Bounty, Gillette and others. This is an established company that sells products that are in high demand regardless of economic conditions. The situation makes it a staple stock that many investors should focus heavily on. While prices have been down in recent years, the company has recently made some transformations. It eliminated dead weight and improved profits for the near future.
4. Walmart (WMT)
You may think that a major retailer like Walmart would have a saturated market by now, but this is simply not the case. In fact, executives are projecting that earnings per share would increase by five to 10 percent by the 2018 calendar year. One of the reasons for its continued growth and success is that its broad distribution and e-commerce sales have enabled it to cut prices that are dramatically lower than the competition and still post a profit.
5. Hormel Food Group (HRL)
The brand that brings Spam to the tables of millions of people is not a brand that most people would get too excited about. However, for dividend stock investors, Hormel is worthy of attention. It has increased its dividend for 51 straight years, and this growth far surpasses the inflation rate. More than that, the company only has a five percent long-term debt load. This means that Hormel is a strong, thriving company that is sure to be a winner in your portfolio in the coming years. Keep in mind that this company also owns brands like Dinty Moore, Muscle Milk, Wholly Guacamole and others.
6. Starbucks (SBX)
There is a common saying that there is a Starbucks located on every major street corner in America. Moreover, you may think that this brand is fairly saturated in the market. It is true that there are currently 25,000 Starbucks around the world. However, this does not mean that there is not room for additional growth. Starbucks plans to add an additional 12,000 locations within the next five years. Much of this growth is centered on China. Still, there are other areas of the world that are open for growth and expansion as well. The company is projecting as much as 20 percent annual growth in earnings this year. Therefore, this means that a dividend increase for investors may be around the corner.
7. Home Depot (HD)
Retail sales, in general, may be rather flat recently, but some sectors of the retail industry are thriving. Home Depot specializes in providing tools, fixtures, appliance and more to homeowners, and this is a hot market right now. These are items that sell well in any economic conditions. In fact, the company posted first quarter sales for 2017 that were up 5.5 percent from this time last year. This is a strong, stable and growing retail company that has an excellent reputation in the industry and a solid dividend for investors to enjoy.
Apple is one of the leading tech firms in the world. It is responsible for bringing such products to the table as is the iPhone line, iPads, Macs, Beats and more. This stock has had a roller coaster of ups and downs over the years. However, in the last 15 years, it has generated 35 percent growth in total annual returns. In 2016, it produced free cash flow of $52.3 billion. Keep in mind that 2016 was an off year for this tech giant. You can see that Apple is truly a dominating force in the tech industry that is not backing down anytime soon.
9. AT&T (t)
AT&T is one of the most well-established and reputable telecommunications firms in the world. While this company adjusts its dividends from time to time, it is currently paying a healthy 4.8 percent on its shares. It has been as high as six percent in recent years. Therefore, you can see that there is room for this already great dividend rate to increase again soon. This company has saturated its market, but it has scaled back its operations so that it is simply a fully profitable and stable moneymaker that its customers rely on to provide a necessary service.
As you can see, there is a healthy mix of exceptional big brand stocks from a wide range of sectors. This gives investors ample opportunity to round out their portfolio with strategic diversification or to create a new portfolio that is intelligently invested in different sectors for maximum gain and profitability. Take time to research each of these big brand stocks further, and you will feel comfortable adding many of them to your portfolio in the coming weeks.