Reuben Gregg Brewer, The Motley Fool
5 min read
It is easy to get excited about big news events, and few things have been bigger lately than politics. Regardless of your political views, tying your investment strategy to a Republican or Democratic success story isn’t likely to set you up for long-term investment success. Why? Because the United States holds elections every two years.
In other words, the political winds can change very quickly. And they often do, noting that the big Democratic win in the midterm elections came just two years after a big Republican win during the presidential election. This is why you may want to consider buying companies like Procter & Gamble (NYSE: PG), Federal Realty (NYSE: FRT), and NextEra Energy (NYSE: NEE). Here’s a deeper dive into each one and the sector they represent.
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Procter & Gamble: You aren’t going to stop buying toilet paper
Procter & Gamble is one of the world’s largest consumer staples companies. It is a Dividend King, with over 50 annual dividend increases. It offers an attractive and well-above-market 2.6% dividend yield. But the real story here is that it sells products you are going to buy regardless of who occupies the White House or controls the Senate and House. In fact, you’ll keep buying the toilet paper, toothpaste, and cough medicines that P&G makes right through bear markets and recessions, too. These products are life necessities.
What makes P&G extra attractive is that it has long focused on leading the industry through innovation. The goal is to make products that customers are willing to pay for, which was on clear display in the first quarter of fiscal 2027. Despite budget tightening among consumers, P&G organic sales rose a healthy 4%. P&G is a very well-run consumer staples business, and even the most conservative investor should feel comfortable owning it for the long term. But the business is a strong representative of a sector whose demand isn’t tied to the political cycle.
Location, location, location will always matter
Fedearl Realty is the only Dividend King real estate investment trust (REIT). It uses a sharpshooter approach, owning only about 100 strip-mall and mixed-use properties. Essentially, its properties are located in areas with large populations of wealthy customers. It also invests significant time and money in development and redevelopment to ensure its properties are leading destinations in the regions they serve. Retailers want to be located in Fedeal Realty assets because the locations can’t be replicated.
