Feeling Patriotic? Some of the Best U.S. Stocks are Also America’s Biggest Brands.
Patriotism is an ever-evolving concept in America. What exactly does it mean to be patriotic? Depends on who you ask. Thankfully, consumer research firm Brand Keys has been asking that question for 16 years. As their name suggests, however, their interest in patriotism is focused purely on brands: Which are America’s most patriotic brands? That’s the question it’s been asking consumers in its annual survey. By proxy, American investors may be curious to know what are the most patriotic stocks to get in the spirit of this Fourth of July weekend.
The most patriotic company, according to the 5,001 American consumers Brand Keys surveyed last year, is Jeep, which is not a public company. The most patriotic public company might surprise you: Walt Disney (DIS). That’s a good stock, or at least it has been of late, up more than 31% so far this year, fueled mostly by a huge gap up in April after revealing plans for its online streaming and content properties.
Cabot Stock of the Week brings you:
Cabot Stock of the Week brings you:
Looking at the list, patriotic brands make for good stocks these days.
Here’s the rest of the 10 most patriotic brands:
- Coca-Cola (KO)
- Ford (F)
- American Express (AXP)
- Hershey’s (HSY)
- Twitter (TWTR)
- Jack Daniels
- AT&T (T)
- Wal-Mart (WMT)
Taking Jeep and Jack Daniels (which is not itself a public company, but is owned by wine and spirits producer Brown-Forman (BFB), which is) out of there, the eight most patriotic stocks have an average 2019 return of better than 24%, ahead of the 18% return in the S&P 500. All eight have posted double-digit returns this year, with only Coca-Cola stock (+10%) underperforming the market.
Going deeper down the list, which includes the 50 most patriotic brands, here are the next five public companies, in order: Ralph Lauren (RL), Amazon (AMZN), Apple (AAPL), McDonald’s (MCD), Pepsi (PEP). Average year-to-date return? 20.8%. And again, all five have posted double-digit 2019 returns, with only Ralph Lauren (+10%) falling short of the S&P 500 so far.
What’s the takeaway here? Invest American!
There are plenty of great investments overseas; our emerging markets expert Carl Delfeld has mined a number of the best international stocks in his Cabot Global Stocks Explorer (formerly Cabot Emerging Markets Investor) advisory. But on the heels of surprising first-quarter GDP growth (+3.2%) and with consumer confidence at elevated levels (and coming off the low of the fourth-quarter market correction), U.S. stocks are humming right now. So if you’d prefer the relative safety of investing in classic American brands—or are simply feeling patriotic and want to invest accordingly—it’s a good time to add some patriotic stocks to your portfolio.
4 Patriotic Stocks to Consider
Which of the ones I just mentioned look like the best patriotic stocks to buy now? I’ll give you four for the Fourth: Disney, Twitter, Amazon and Pepsi. All four are up at least 20% so far this year, all four trade well above their 200-day moving average and all but Pepsi are on track for double-digit sales growth this year.
Pepsi stock, however, offers the highest yield of the group at 2.9% and is a Dividend Aristocrat, having raised its dividend for 46 straight years. (Neither Twitter nor Amazon pays a dividend.) So, there’s something to like with all of them.
If you’re looking to add some American to your portfolio to celebrate our Independence, you can’t go wrong with any of the stocks I just mentioned. Maybe you could do it while watching a Disney movie on your couch, sipping a Pepsi and tweeting about your latest Amazon purchase.
Nothing could be more American!
Investment analyst and Chief Analyst of Cabot Wealth Daily, Chris Preston brings you all the latest from the investing world. Sign up to get updates and breaking news delivered FREE to your inbox. Get unlimited access to our library of complimentary investing reports.Sign up now!