iQ Consumer Staples Model

 

 

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Consumer staples are essential products, such as food, beverages, tobacco and household items. Consumer staples are goods that people are unable or unwilling to cut out of their budgets regardless of their financial situation.

The consumer staples sector has outperformed all but one sector since 1962. Due to their low volatility, consumer staples stocks are considered to play a key role in defensive strategies. Buoyed by the persistent demand of it products, consumer staples companies generate consistent revenues, even in recessionary periods. As a result, consumer staples stocks decline far less during bear markets than stocks in other sectors.

Process:

  1. Start with the largest 75 domestically-traded companies from the Consumer Staples sector

  2. Select the 30 companies with the highest Operating and Dividend yields.

  3. Screen by 3-year Seasonal Relative Strength and select the top 10.