This afternoon, the leading consumer staple stocks are declining sharply lower on the trading session. It is important to note that this important industry group has been leading the major stock indexes higher since August 2011. Most of the leading stocks in this sector pay a dividend and many investors own these stocks for the income that they provide. It seems that many investors now believe that these stocks are fully valued at this time. The dividend yield for the leading consumer staples stocks is just over 2.0 percent, this is now the same yield that the 10-year U.S. Treasury Note is yielding. Could this be the catalyst for the decline in the consumer staple stocks?
Some of the leading consumer staple stocks that are declining lower today include Colgate-Palmolive Co. (NYSE:CL), Kimberly-Clark Corporation (NYSE:KMB), Procter & Gamble Co. (NYSE:PG), and The Clorox Co (NYSE:CLX). All of these stocks have sold off from the recent highs with an increase in volume. This is usually an indication of lower prices ahead for the sector. When leading sectors begin to roll over with volume it could signal problems will occur with the major stock indexes.