The consumer staples sector has long been a go-to for investors seeking stability and consistent returns, even when the economy is looking a bit shaky. In 2024, with inflation still running hot and recession fears lurking, the sector has been a surprisingly strong performer. As a group, the S&P 500 Consumer Staples Sector ($SRCS) is up 6% in 2024, narrowly edging past the 5.8% return of the broader S&P 500 Index ($SPX) - and some standouts within the sector are faring even better.
Take grocery giant Kroger (KR), for example. With its extensive network of over 2,800 stores across 35 states, the consumer goods giant has a massive foothold in the staples category. While its merger with Albertsons (ACI) is still awaiting final regulatory approval, Kroger is a force to be reckoned with all on its own. Not only does KR account for a respectable 0.7% of Berkshire Hathaway's (BRK.B) equity portfolio, with the Warren Buffett-led conglomerate holding a stake worth 6.9% - but the grocery chain also boasts an impressive 16-year streak of dividend growth.
