These days, investors are finding some big gains in some unlikely sources. “Boring” has replaced cool. With the market long in the tooth, investors have been plowing some big bucks into a variety of sectors known for their stability, cash flow generation and propensity to pay dividends. Utilities and healthcare have been big winners, but even these sectors can’t compare to the gains in the consumer staples sector.
It’s easy to understand the appeal. After all, consumers still need to eat or brush their teeth even when times are bad. So, naturally, they are a safe and steady choice. The problem, however, could be that investors may have gotten ahead of themselves. With the sector surging higher over the year, valuations may be a bit stretched.
And yet, even with those stretched valuations, consumer staples may still offer some value to dividend seekers and those conservative investors heading into the new year.
You can find an updated list of companies that recently announced changes in their payout policies, along with their ex-dividend dates, in our Dividend Payout Changes and Announcements tool.
