Five charts to start your day

Snack stocks have fallen out of favour with investors, by why?

The hotel I’m staying at offers a $10 voucher a day to take whatever snacks you like from the lobby. It’s a nice little unhealthy perk that comes with the room. But after 12 hours flying, it really filled that hole in our stomachs when we arrived.

As an investment theme, snacks are more interesting. Take a look at this chart from Chartr on snack stocks. You don’t have to know any of the names here. All you need to know is that these stocks are considered classic income investments and that they are now a bit out of favour with the market.

Personally, I haven’t really ever thought about snack stocks, which is why I found this interesting. The story behind this chart is that food and beverage stocks haven’t fared so well in the higher interest rate environment. During the zero interest rate environment, food and beverage stocks and staples offered a 3 per cent to 3.5 per cent dividend yield with some dividend growth, which made them an attractive stock for investors looking for yield.

Higher interest rates, however, have made these sectors relatively less attractive as you can now get 4 per cent to 5 per cent in money market funds and US Treasury bills for a lot less risk exposure.

Source: Chartr

Coming up:

• The US isn’t investing enough in infrastructure

• The most commonly mentioned investments in influencer content

• Gold has appreciated versus every major currency over the decades

• The US yield curve has been inverted for more that 20 months

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