The “prepper” or survivalist movement was around for decades before the novel coronavirus outbreak. But now, as COVID-19 continues to dominate the headlines and reshape the global economy, preparing for imminent catastrophe doesn’t seem quite as eccentric.
While not everyone is buying eight months worth of food, we have seen a serious surge in panic-buying as consumers hole up at home. It doesn’t take much of a stretch in imagination to see these trends as significant in the medium-term. Despite a flattening curve, experts remain divided about exactly how long the U.S. will be under social distancing measures, or to what degree.
With that in mind, you should load up on so-called prepper stocks, not just essential goods. Here are three stocks to buy in companies providing items that are always in-demand in a crisis:
In the markets and in life, there’s no need to be scared if you’re prepared. So settle in and get ready for the unexpected with this selection of stock picks that can shield your portfolio in troubling times.
Prepper Stocks to Buy: Campbell Soup (CPB)
If you’re hoarding food for the long-haul, you’ll need food that won’t perish, and an obvious choice would be canned goods. We all know that Campbell Soup sells cans of its namesake soup, but they also sell tasty canned foods such as Spaghetti-O’s.
Campbell stock is known as a safety stock, and its healthy forward dividend yield of 3% does provide a nice cushion when markets move south. It’s also reassuring to know Campbell is a pro penny-pincher, as the company managed to save $45 million during 2020’s second quarter as part of a large-scale cost-saving program.
Besides, Campbell isn’t just a canned-goods company. The company’s snacks business includes cookies, pretzels, and crackers, and comprises over 40% of the Campbell’s top line during 2020’s second fiscal quarter. With so much going for it, Campbell stock belongs on any prepper’s shelf.
If there’s one thing we’ve all learned during the coronavirus crisis, it’s how essential paper towels and bathroom tissue can be. Kimberly-Clark is therefore a great prepper stock as the company owns Scott paper towel, Cottonelle bathroom tissue, and Kleenex tissues.
Like Campbell, Kimberly-Clark is essentially a safety stock and the company is known to reward shareholders. Kimberly-Clark’s 3.26% forward dividend yield should make long-term buyers feel more secure about their investment.
And by the way, preppers can feel good about owning Kimberly-Clark stock as the company just donated $2.5 million to UNICEF and another $2.5 million to the International Federation of Red Cross and Red Crescent Societies and the American Red Cross. Clearly they’re ready and willing to help out during this crisis, and they’ve got the goods to keep shareholders and stockpilers satisfied.
American Outdoor Brands (AOBC)
You might not be familiar with American Outdoor Brands, but perhaps you ought to be, since the company owns the famous gun brand Smith & Wesson. The company also owns Tipton gun cleaning supplies and an array of other accessories-related brands.
And demand for guns is surging. In New York, shoppers have been seen waiting in line for two hours to buy guns. The coronavirus outbreak has led to some people considering gun ownership, perhaps even those folks who have never owned a gun before.
The share price is off of its 2016 peak of around $30, and those long gun lines could translate to a serious pickup in business for American Outdoor Brands. If unrest does occur among the population, self-protection would likely come into focus and American Outdoor Brands shareholders could enjoy sizable returns very quickly.
As of this writing, David Moadel did not hold a position in any of the aforementioned securities.