FMD Capital Management

Posts Tagged: consumer staples

Consumer Staples ETFs Face Technical Test

Written by David Fabian, October 03rd, 2017

Consumer staples stocks have always been known for their relatively low volatility and conservative nature. It’s one of the reasons they are such a prominent aspect of many retirement portfolios and continue to serve as a reassuring equity allocation for countless investors.

These companies are typified by their mature business models and inelastic consumer trends. Think grocery stores, beverage companies, consumer goods, tobacco stocks, and drug store chains. They sell products that are constantly in demand no matter what the overall economy is doing. For this primary reason, they are considered more stable than speculative or growth-oriented stocks.

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Evaluating Counter-Trend Opportunities In Retail ETFs

Written by David Fabian, February 15th, 2017

Retail stocks have become a highly-publicized area of the market in recent years as the continued struggle for brick and mortar relevance battle the efficiency of online sales.  The trend has been exacerbated with the steady expansion of retail juggernaut Amazon Inc (AMZN) into more and more households.  The strength of Amazon has unavoidably weighed on the share prices of more traditional retailers that find themselves strung with slowing sales and inescapable costs.

There is no doubt that consumerism is alive and well in the heart of the American economy.  Which is why it’s worth considering if the pendulum of momentum will eventually swing back in the direction of numerous stalwart retail competitors.

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Dividend ETFs: Yield, Quality or Both?

Written by Michael Fabian, March 27th, 2015

In the income investing universe, participants have a predisposition to focusing on ETFs with the highest headline yields. After all, income investors have a way of keying in on a yield that matches up with their spendable cash flow needs.

Yet more recently, there are a myriad of so-called “dividend growth ETFs” that sport yields just slightly higher than blended indexes, such as the S&P 500. Read more

How to Play Lagging Consumer Staples Stocks

Written by David Fabian, February 12th, 2014

Consumer staples stocks have always been known as stalwart anchors for the majority of dividend equity portfolios.  These companies provide essential products and services to consumers that are often thought to be insulated from the threat of a slowing economy.  Think diapers, cigarettes, soda, and drugstores if you want to picture a sector that is known for its inelastic demand and built in consumer base. Read more