💰3 Consumer Stocks to Embrace S'pore Everyday Life: F34, Y92 & OV8

• $Wal-Mart(WMT)$ reported better-than-expected earnings, driving a 3% gain.

• Consumer/non-cyclical stocks prove decent dividend to shareholders.

• Stay tuned and supercharge purchasing power with CashBoost!

Market recap

Driven by Nvidia's surge, the Nasdaq closed higher. Earlier, investors were worried about some geopolitical issues, and the market had initially fallen.

The Nasdaq Index rose by 1.04%, with tech stocks and $NVIDIA Corp(NVDA)$ being highlights. $NVIDIA Corp(NVDA)$ rose nearly 5% ahead of its highly anticipated earnings report on Wednesday. Tesla's stock price increased by 2%, with a cumulative gain of 38% so far this month. Among them, $Netflix(NFLX)$ continued to hit record highs, and $NVIDIA Corp(NVDA)$ achieved its largest single-day gain since September 11.

On November 19, China A-share market staged a V-shaped rebound, with the ChiNext Index leading the rise. The Shanghai Composite Index regained the 3300-point mark, with more than 4,500 stocks rising across the market. In the Hong Kong stock market, the main indices also rebounded across the board.

Future nostalgia

Gold prices rallied. The escalation of geopolitical tensions in the Middle East and the risk of an escalation in the Russia-Ukraine conflict have intensified market risk aversion, boosting the oversold rebound in gold (GLD).

Once again, $Bitcoin(BTC.USD.CC)$ hit new all-time high. A series of recent events show that the United States is increasingly embracing the digital asset industry. For example, $Trump Media & Technology(DJT)$ is in talks to acquire the digital asset trading platform $Bakkt Holdings, Inc.(BKKT)$ . Notably, Bitcoin-related stock $MicroStrategy(MSTR)$ closed up 11.89%, with a trading volume of $20.94 billion. As of Tuesday's close, the stock has risen for three consecutive trading days, with a cumulative increase of over 30%. By the way, BlackRock’s spot bitcoin ETF ( $iShares Bitcoin Trust(IBIT)$ ) saw its assets rise by $13 billion in the wake of Trump's win on Nov. 5.

$Wal-Mart(WMT)$ reported better-than-expected earnings and raised its performance guidance, with its stock price rising by 3%. In the third quarter, Walmart's revenue and profit continued to achieve strong growth, marking the third time this year it has raised its full-year revenue guidance. It expects the holiday shopping season to continue the growth momentum. $Wal-Mart(WMT)$ has a price advantage, with the average price of its "basket of goods" being about 10% to 12% cheaper than its peers. Walmart's low-price strategy has even put significant competitive pressure on Amazon.

Dividend Play: Consumer sector and non-cyclical

Like $Wal-Mart(WMT)$ , in the consumer sector and non-cyclical stocks have the potential to outperform the market over the long run, providing decent dividend to shareholders.

Predictable earning outlook

The consumer sector encompasses essential products and services required for everyday life, resulting in stable demand. This stability gives consumer sector stocks a degree of resilience in downturns. Non-cyclical stocks, representing industries that are generally unaffected by economic cycles, tend to show relatively consistent performance in both earnings and stock prices. This means that during economic recessions or market fluctuations, non-cyclical stocks often maintain a more stable trajectory, providing investors with a safe haven. For instance, in the consumer staples sector—including food, beverages, and pharmaceuticals—demand remains steady regardless of economic conditions.

Brand as a moat

Many companies within the consumer sector possess strong brand influence, making brand value one of their essential assets. Companies with well-known brands often capture higher market shares and pricing power, leading to greater returns for shareholders. Additionally, the industries that non-cyclical stocks represent typically exhibit sustained growth potential. With population growth, consumer upgrading, and technological advancements, these sectors can continuously expand their market reach and achieve long-term performance growth.

Strong cash flow (thus stable dividends)

Consumer sector companies generally enjoy stable cash flow due to the high turnover of their products and services. This stability enables firms to better navigate market changes and risks while providing shareholders with consistent dividend income. Investing in high-dividend stocks serves as an effective strategy to counter market pullbacks and volatility. High-dividend stocks typically come from companies with stable performance and robust cash flow. These companies often hold significant positions in their industries, showcasing strong competitiveness and risk resilience. During market downturns and fluctuations, they can leverage their advantages to maintain relatively stable operations, thereby offering investors a continuous and reliable dividend income.

Selected Singapore Consumer Stocks

$Wilmar Intl(F34.SI)$ , $ThaiBev(Y92.SI)$ , and $Sheng Siong(OV8.SI)$ are key players in Singapore's consumer sector. These three stocks are closely watched in the Singapore stock market, and their performance and development trends serve as important indicators for the direction of the consumer market in Singapore.

SGX Dividend Play - Consumer goods (as of 20th Nov. 2024)

$Wilmar Intl(F34.SI)$ : A major player in agricultural processing and trading, Wilmar has a broad impact across various sectors, including oils and grains.

$ThaiBev(Y92.SI)$ : As a leader in the Southeast Asian beverage market, ThaiBev offers a wide range of popular drinks, including Chang Beer and Chang Soda Water. Additionally, it operates over 240 KFC outlets in Thailand.

$Sheng Siong(OV8.SI)$ : One of Singapore's largest supermarket chains, Sheng Siong provides consumers with a diverse selection of products.

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