Clorox, General Mills, and Constellation Brands Are Down Between 22% and 33%. Here's the Stock to Buy, Even if the Fed Keeps Hiking Interest Rates.
Consumer goods stocks are supposed to be the boring, reliable part of a portfolio: People buy detergent, toothpaste, and other everyday products in good times and bad. But that reputation has taken a beating this year. Clorox (NYSE: CLX) , General Mills (NYSE: GIS) , and Constellation Brands (NYSE: STZ) are all down double digits from their highs -- each for very different reasons. Higher interest rates make the comparison more useful, not less, because they raise the bar for what "safe" actually means: A company has to generate real cash and not lean too hard on debt to keep paying its dividend . Only one of these three clears that bar comfortably right now. Image source: Getty Images. Continue reading