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Today, we’re discussing two stocks from the Consumer Stapes sector. This sector had done pretty well earlier this year, due to its defensive nature and attractive dividend yields.  However the sector has struggled over the past couple months due to valuation concerns, fears of a rate hike and also since investors had started warming up to cyclical sectors.

But now, with the volatility expected to rise as we approach the Election Day and the Fed now expected to stay accommodative, I think this sector may regain investor favor. And the stocks that we’re discussing are not too pricey and have strong growth potential.

Sysco (SYY - Free Report)

They are one of the largest food and supplies distributors in the US, serving restaurants, hospitals and schools.

They reported strong results for the recent quarter with solid growth in volume, revenue as well as earnings.

If you look at the Price, Consensus and EPS surprise chart, you can see the positive momentum. Analysts have been raising their estimates and they’re particularly bullish for 2017 earnings. We also see that the company has a very good record at beating estimates with just two misses in last 20 quarters.

Recently, they bought Supplies on the Fly, an e-commerce platform, which will strengthen their online ordering system. In fact, they have been very active on the acquisitions front and those acquisitions have been driving growth.

They have been returning capital to shareholders via dividends and share repurchases. They have paid dividends each year since inception and have increased dividend 47 times.

Their current dividend yield exceeds 2.5%. The stock is currently ranked Zacks Rank #2 (Buy) with Growth as well as VGM score of A.

Tate & Lyle ADR (TATYY)        

Tate & Lyle PLC is a London based multi-national agribusiness. They supply ingredients and solutions to food, beverage and other industries. They were originally a sugar refining business; in fact they helped discover sucralose, a no-calorie sweetener, which is used in leading artificial sweeteners, including Splenda.

The group generates less than 2% of its revenue in the U.K., with most revenue being US dollar based. A weak British pound post Brexit has been very good for them. They expect earnings to "increase strongly" if the pound remains weak for the year.

It’s a Zacks Rank #1 (Strong Buy) stock with a B for Growth and VGM. The dividend yield is very attractive at 3.7%

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