Wild times are upon us. This month I’m sinking my money into safe, mega-cap businesses. None of these companies are obscure, or even super exciting. But that’s the point.
Below are the three investments I’m making in March, 2022.
1. Nestle ($NSRGY)
Writing about Nestle feels weird, in the same way that writing about Coca-Cola would. You already know this company, and there’s really not much new or unique that I can add.
Nestle is the world’s largest food company. You can find their products in almost any grocery store around the world. Nestle also has an enormous portfolio of over 2,000 brands, including well-known household staples like Taster’s Choice, Perrier water, Gerber baby food, DiGiorno pizza, Lean Cuisine, Dreyer’s ice cream, Coffee-Mate creamer, and Nescafe.
Additionally, Nestle owns the Purina dog food line and Friskies cat food.
Nestle currently has a dividend yield of about 2.40%.
However, there are some downsides here. For one, the company only pays out annually. So this isn’t a great income stock for people who need cash flow now. Secondly, Nestle shareholders re subject to a special, 15% Swiss dividend withholding tax.
While I’m not a huge fan of the dividend tax, and it would be nice to get more consistent payouts, Nestle is still a great company that will continue to do well long-term.
2. Colgate-Palmolive ($CL)
Another massive consumer staple business, Colgate-Palmolive owns many wide moat brands.
Colgate is the number one word leader in toothpaste sales (with its titular “Colgate” line). But it’s also a business that owns many other recognizable hygiene and house care brands. They make Palmolive and Irish Spring soap, Speed Stick deodorant, Ajax Powdered Cleanser, and natural ingredient based Tom’s of Maine.
Like Nestle, Colgate is also involved in the pet food industry. They own Hill’s Pet Nutrition, best know for its Science Diet brand.
Lastly, Colgate shareholders have enjoyed 59 years of consecutive dividend raises, and the company has paid uninterrupted dividends since 1895…