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The Consumer Defensive sector includes companies that provide essential goods and services, such as food and beverages, household items, and personal care products. This sector is generally less sensitive to economic downturns. Examples of companies in this sector are Procter & Gamble, Coca-Cola, and Unilever.
A Canadian investor may want exposure to the Consumer Defensive sector for diversification benefits, as these stocks tend to be less volatile during economic downturns. Additionally, a macro thesis of steady demand for essential goods and services supports investment in this sector.
Canadian investors should consider balance-sheet quality and competitive moat when picking individual stocks in the Consumer Defensive sector. A company's ability to maintain a strong financial position and withstand market fluctuations is crucial.
The Canadian tax considerations for Consumer Defensive stocks suggest that holding them in a Registered Retirement Savings Plan (RRSP) is tax-optimal. This is because the RRSP eliminates the 15% U.S. withholding tax on U.S. dividends, thanks to the Canada-U.S. tax treaty.
Procter & Gamble (PG) — produces a wide range of consumer goods including household and personal care products. Coca-Cola (KO) — manufactures and distributes various beverage products worldwide, including its iconic soft drinks.
RRSP — Procter & Gamble, Coca-Cola and Philip Morris pay large U.S. dividends — an RRSP eliminates the 15% withholding under the Canada-U.S. tax treaty.
The Consumer Defensive sector in Canada includes stocks of companies that provide essential goods and services, such as food and beverages, household products, and personal care items. Some notable consumer defensive stocks listed in Canada are those of companies with well-established brands and stable demand.
Canadian investors in the Consumer Defensive sector should consider the tax implications of holding U.S. or Canadian dividend-paying stocks. In a non-registered account, eligible Canadian dividends qualify for the dividend tax credit, reducing the tax burden. For U.S.
For the Consumer Defensive sector, investors have the option to buy individual stocks or a sector ETF. Buying individual stocks allows for targeted investment in specific companies, but may increase risk if the company underperforms.
ETFs | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
WM WMT Walmart Inc. | Consumer Defensive | NASDAQ | +295 | $931.7B | US$116.89 | +24.7% | 40.76 | 0.86% | 0.65 | |
CO COST.TO Costco Wholesale Corporation | Consumer Defensive | TSX | +254 | $563.0B | $43.03 | -0.4% | 47.58 | 0.56% | 0.91 | |
CO COST Costco Wholesale Corporation | Consumer Defensive | NASDAQ | +254 | $426.6B | US$961.83 | +1.6% | 49.76 | 0.61% | 0.91 | |
KO KO The Coca-Cola Company | Consumer Defensive | NYSE | +246 | $338.9B | US$78.76 | +17.1% | 24.85 | 2.68% | 0.36 | |
PG PG The Procter & Gamble Company | Consumer Defensive | NYSE | +247 | $326.4B | US$140.19 | -11.6% | 21.02 | 2.97% | 0.40 | |
PM PM Philip Morris International Inc. | Consumer Defensive | NYSE | +218 | $274.2B | US$175.94 | +9.3% | 24.98 | 3.31% | 0.39 | |
PE PEP PepsiCo, Inc. | Consumer Defensive | NASDAQ | +214 | $194.8B | US$142.54 | +19.5% | 22.64 | 4.11% | 0.39 | |
BU BUD Anheuser-Busch InBev SA/NV | Consumer Defensive | NYSE | $135.5B | US$79.04 | +19.2% | 22.16 | 1.68% | 0.79 | ||
BT BTI British American Tobacco p.l.c. | Consumer Defensive | NYSE | $126.7B | US$58.62 | +53.9% | 13.20 | 5.40% | 0.12 | ||
UL UL Unilever PLC | Consumer Defensive | NYSE | +1 | $119.8B | US$55.31 | -18.3% | 18.75 | 4.04% | 0.45 | |
MO MO Altria Group, Inc. | Consumer Defensive | NYSE | +190 | $117.4B | US$70.30 | +33.2% | 14.53 | 6.09% | 0.52 | |
MN MNST Monster Beverage Corporation | Consumer Defensive | NASDAQ | +144 | $87.1B | US$89.04 | +35.7% | 42.55 | — | 0.50 | |
MD MDLZ Mondelez International, Inc. | Consumer Defensive | NASDAQ | +171 | $78.7B | US$61.31 | -4.7% | 30.28 | 3.27% | 0.40 | |
L L.TO Loblaw Companies Limited | Consumer Defensive | TSX | +113 | $73.1B | $62.80 | +10.4% | 27.91 | 1.01% | 0.41 | |
CL CL Colgate-Palmolive Company | Consumer Defensive | NYSE | +192 | $67.9B | US$84.87 | +0.5% | 34.93 | 2.35% | 0.30 | |
TG TGT Target Corporation | Consumer Defensive | NYSE | +166 | $56.7B | US$124.80 | +34.5% | 16.79 | 3.59% | 1.01 | |
DO DOL.TO Dollarama Inc. | Consumer Defensive | TSX | $47.7B | $175.09 | +4.3% | 37.35 | 0.27% | 0.37 | ||
DE DEO Diageo plc | Consumer Defensive | NYSE | — | $43.7B | US$78.67 | -19.0% | 19.04 | 4.03% | 0.30 | |
KD KDP Keurig Dr Pepper Inc. | Consumer Defensive | NASDAQ | +129 | $41.6B | US$30.55 | -8.6% | 22.24 | 3.06% | 0.42 | |
FM FMX Fomento Económico Mexicano, S.A.B. de C.V. | Consumer Defensive | NYSE | +1 | $41.5B | US$121.81 | +17.6% | 26.16 | 5.64% | 0.19 | |
CC CCEP Coca-Cola Europacific Partners PLC | Consumer Defensive | NASDAQ | — | $40.9B | US$92.41 | +7.8% | 18.32 | 2.65% | 0.49 | |
AD ADM Archer-Daniels-Midland Company | Consumer Defensive | NYSE | +147 | $40.5B | US$84.11 | +64.5% | 35.62 | 2.61% | 0.58 | |
KR KR The Kroger Co. | Consumer Defensive | NYSE | +154 | $37.8B | US$61.23 | +0.7% | 40.36 | 2.25% | 0.46 | |
WN WN.TO George Weston Limited | Consumer Defensive | TSX | $37.3B | $98.93 | +8.4% | 35.77 | 1.33% | 0.53 | ||
SY SYY Sysco Corporation | Consumer Defensive | NYSE | +157 | $36.0B | US$75.24 | +8.7% | 21.06 | 2.90% | 0.66 | |
KV KVUE Kenvue Inc. | Consumer Defensive | NYSE | +118 | $32.3B | US$16.83 | -24.6% | 20.57 | 4.80% | 0.52 | |
KM KMB Kimberly-Clark Corporation | Consumer Defensive | NASDAQ | +167 | $31.5B | US$94.76 | -27.9% | 18.88 | 5.25% | 0.31 | |
HS HSY The Hershey Company | Consumer Defensive | NYSE | +155 | $27.2B | US$183.20 | +26.2% | 36.13 | 2.99% | 0.07 | |
KH KHC The Kraft Heinz Company | Consumer Defensive | NASDAQ | +140 | $27.0B | US$22.76 | -5.8% | — | 6.66% | 0.05 | |
BG BG Bunge Global SA | Consumer Defensive | NYSE | $25.5B | US$131.41 | +56.7% | 32.45 | 2.34% | 0.63 | ||
ST STZ Constellation Brands, Inc. | Consumer Defensive | NYSE | +108 | $23.3B | US$135.40 | -18.2% | 14.45 | 2.97% | 0.42 | |
DG DG Dollar General Corporation | Consumer Defensive | NYSE | +146 | $23.1B | US$105.09 | +6.9% | 16.15 | 2.13% | 0.28 | |
KO KOF Coca-Cola FEMSA, S.A.B. de C.V. | Consumer Defensive | NYSE | $22.6B | US$107.63 | +14.3% | — | 3.80% | 0.53 | ||
CH CHD Church & Dwight Co., Inc. | Consumer Defensive | NYSE | +128 | $22.0B | US$92.89 | -0.7% | 31.46 | 1.29% | 0.48 | |
DL DLTR Dollar Tree, Inc. | Consumer Defensive | NASDAQ | +114 | $21.6B | US$112.50 | +5.2% | 18.69 | — | 0.61 | |
EL EL The Estée Lauder Companies Inc. | Consumer Defensive | NYSE | +111 | $20.3B | US$82.05 | +34.4% | — | 1.57% | 1.21 | |
MR MRU.TO Metro Inc. | Consumer Defensive | TSX | $18.8B | $89.02 | -15.1% | 18.86 | 1.84% | 0.37 | ||
US USFD US Foods Holding Corp. | Consumer Defensive | NYSE | +114 | $18.3B | US$83.16 | +3.8% | 27.56 | — | 0.90 | |
SA SAP.TO Saputo Inc. | Consumer Defensive | TSX | +19 | $17.4B | $42.91 | +61.4% | 27.08 | 1.87% | 0.12 | |
GI GIS General Mills, Inc. | Consumer Defensive | NYSE | +137 | $17.2B | US$32.17 | -34.6% | 8.27 | 7.22% | -0.03 | |
TS TSN Tyson Foods, Inc. | Consumer Defensive | NYSE | +146 | $16.1B | US$57.09 | +21.0% | 48.05 | 3.34% | 0.39 | |
PF PFGC Performance Food Group Company | Consumer Defensive | NYSE | +73 | $15.2B | US$96.54 | +8.8% | 46.76 | — | 0.92 | |
HR HRL Hormel Foods Corporation | Consumer Defensive | NYSE | +129 | $12.7B | US$23.13 | -26.5% | 27.33 | 5.04% | 0.31 | |
MK MKC McCormick & Company, Incorporated | Consumer Defensive | NYSE | +129 | $11.8B | US$46.29 | -31.9% | 7.77 | 4.05% | 0.67 | |
BJ BJ BJ's Wholesale Club Holdings, Inc. | Consumer Defensive | NYSE | +111 | $11.4B | US$89.18 | -24.9% | 19.60 | — | 0.27 | |
SJ SJM The J. M. Smucker Company | Consumer Defensive | NYSE | +98 | $10.8B | US$101.27 | -6.6% | — | 4.26% | 0.24 | |
CL CLX The Clorox Company | Consumer Defensive | NYSE | +128 | $10.7B | US$88.53 | -24.1% | 14.64 | 5.51% | 0.57 | |
CO COKE Coca-Cola Consolidated, Inc. | Consumer Defensive | NASDAQ | +65 | $10.0B | US$177.34 | +57.6% | 23.77 | 0.58% | 0.60 | |
DA DAR Darling Ingredients Inc. | Consumer Defensive | NYSE | +95 | $9.8B | US$61.55 | +82.7% | 42.83 | — | 1.07 | |
PR PRMB Primo Brands Corporation | Consumer Defensive | NYSE | +57 | $8.8B | US$24.19 | -26.0% | 130.53 | 1.94% | 0.65 |