Thanksgiving is right around the corner, whether we like to acknowledge that fact or not. Let’s not even get started about Christmas.

But with the holidays quickly approaching, the school year underway, and the cold air about to grace us with its presence, investors are increasingly focusing on their portfolios and how they may want to position them for the rest of the year. (Hey, another Santa Claus rally would be nice this year, thanks very much).

As I got started thinking about Thanksgiving, my attention turned to three stocks that have been on my watch list for some time. Here’s my take on these three Thanksgiving-themed stocks and whether they may be the sort of portfolio stuffing you’re looking for this Fall.

Key Points About This Article:

• The holiday season is right around the corner, and this is the time of year when many investors consider rotating into and out of certain names.
• Here are three Thanksgiving-themed stocks that may be worth a keeping on the radar over the coming months.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

Hormel Foods (HRL)

Hormel Foods (NYSE:HRL) stands out among food staple providers (particularly from those in the Midwest). The Minnesota-based company produces a range of meat products many in this particular region of the country find appetizing (and others elsewhere, I suppose).

Whether you like SPAM or not, the company’s status as a Dividend King is what ultimately attracts most investors to this stock. With a stable dividend yield of 3.5% (and one that’s almost guaranteed to continue growing over time), that’s only half the story. The company’s long-term stock price performance has been impressive, meaning long-term investors in this name have really had the honor of holding a winner in their portfolios for some time.

The company’s stock price has seen some volatility of late, as the company reported a 3% drop in net sales this past quarter as weak consumer demand and margin pressures put some downside pressure on HRL stock. However, the company’s earlier results showed strength, and the company did provide its 384th consecutive quarter of dividend payouts. That’s something to write home about.

As far as long-term dividend stocks to hold, Hormel certainly deserves a look by investors with a reasonable investing time horizon.

Dollar General (DG)

Dollar General (NYSE:DG) operates over 20,000 stores and serves many lower-income consumers across the U.S. and around the world. Unfortunately, this stock has been on the decline of late, leading to a valuation that many are starting to feel is worth considering. 

The company has seen shrink move higher, and is also feeling the margin pressures many other retailers have noted. When lower-income consumers get squeezed, normally they transition some of their shopping to Dollar General (i.e. that’s a good thing). In this economy, it appears few retailers are getting a pass.

That said, the company did beat earnings estimates this past quarter as rising foot traffic led to a 6.1% sales increase to $9.91 billion, which was accompanied by $363 million in net income. The company’s move to become a “back to basics” company is something I think many like, and could make the stock much more attractive on a forward basis.

Diageo PLC (NYSE:DEO)

No Thanksgiving dinner would be complete without sampling some of Diageo PLC’s (NYSE:DEO) alcoholic beverages. A leader in this category globally, Diageo has also faced challenges in early fiscal 2024, but showed resilience. Organic net sales grew 2.5% this past quarter (excluding Latin America and the Caribbean), despite tough comparisons. And while the company is looking to adjust its inventory levels in North America, cost savings initiatives have paid off, with Diageo cutting around $335 million off its cost basis while investing in its brands. 

On August 12, RBC Capital upgraded Diageo’s stock from Underperform to Sector Perform, raising its price target to GBP24.00 from GBP21.00. This change reflects RBC’s expectation of a strategic shift at Diageo, prompted by the upcoming appointments of a new CFO and IR head. The analysts at RBC suggest that Diageo revised its revenue and profit forecasts to restore investor confidence, moving away from its current ‘affordable luxury’ narrative towards a more traditional staples market approach.

I think that narrative is in line with what I’m seeing. And as more analysts jump aboard and upgrade this Warren Buffett-owned stock, I think investors have plenty of reason to at least consider the global beverage giant heading into the holidays.

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