Consumer staples are companies that make and sell essential goods that individuals and families can’t do without. Food, drinks, household cleaning products, personal care items, and even tobacco and alcohol are all considered consumer staples. Since these products meet people’s basic needs, they’re always in demand, even when the economy weakens. This helps the companies that produce them to always have a dependable customer base.
“While not as flashy as other parts of the market, the consumer staples sector plays an important role in portfolios due to its defensive characteristics and dividend income orientation,” says James Harlow, a chartered financial analyst with Novare Capital Management.
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Since they have reliable revenue streams, many consumer staples stocks pay regular dividends. Many of these companies have a strong track record of dividend increases, too. For example, Procter & Gamble Co. (ticker: PG) has paid dividends for 136 consecutive years and recently made its 70th consecutive increase.
“This combination of steadiness and income is a key reason why this sector has historically provided downside protection during market downturns and times of uncertainty,” Harlow says.
These qualities enabled the sector to hold up relatively well during past downturns, including the 2008 financial crisis and the pandemic-driven sell-off in 2020.
“That said, currently the sector offers limited growth potential compared to cyclical sectors and is highly competitive, which may affect profitability,” says Liz Ann Sonders, a chief investment strategist for Schwab Center for Financial Research. “Tariffs and input cost inflation is also likely to pressure profit margins in the sector.”
If you’re one of the many investors who appreciate the defensive nature and historical performance of consumer staples, today’s list will interest you. The seven companies below have demonstrated their resilience in good times and bad through pricing power, strong brands and a steady demand for everyday essentials:
| Stock | Forward Dividend Yield | Market Capitalization |
| Walmart Inc. (WMT) | 0.8% | $1 trillion |
| Costco Wholesale Corp. (COST) | 0.6% | $450 billion |
| Procter & Gamble Co. (PG) | 2.9% | $346.8 billion |
| Coca-Cola Co. (KO) | 2.7% | $326.7 billion |
| PepsiCo Inc. (PEP) | 3.7% | $212.7 billion |
| Dollar General Corp. (DG) | 2.0% | $26.1 billion |
| Mondelez International Inc. (MDLZ) | 3.5% | $74.2 billion |
Walmart Inc. (WMT)
With over 10,750 stores and clubs and around 270 million weekly visitors, Walmart is the largest retailer in the world. It operates through three segments: Walmart U.S., Walmart International and Sam’s Club. Each of those segments has a thriving online operation that perfectly complements its physical locations.
The company runs department stores, large supercenter outlets, Walmart Neighborhood Markets and a large network of more than 600 Sam’s Club warehouse stores that compete directly with Costco Corp. (COST) across the U.S. and Puerto Rico.
WMT has a market cap of over $1 trillion and has increased its dividend every year for 53 consecutive years. Today, the stock pays a forward annual dividend of 99 cents a share, which translates to a yield of about 0.8%.
Costco Wholesale Corp. (COST)
Over many years, through many economic and market cycles, COST has demonstrated a unique ability to be resilient and succeed in good times and bad.
Costco operates 928 big-box, warehouse retail outlets throughout North America and internationally. The company’s business model is based on paid memberships. Customers must pay an annual fee of between $65 and $130 for the privilege of shopping at a Costco, yet business is going strong and membership numbers are climbing. Net sales increased 8% in fiscal year 2025 to $269.9 billion and net income rose 10% to $8.1 billion.
The success Costco has had with its unique business model in a very challenging retail environment shows how skillful and adaptable this company is at managing prices and delivering a rewarding shopping experience.
Additionally, the company recently increased its quarterly dividend to $1.47 per share, or an annualized $5.88 per share. This translates to a current yield of 0.6%.
Procter & Gamble Co. (PG)
Procter & Gamble is another leading consumer staples company. Its massive portfolio of leading brands covers numerous categories, such as beauty, grooming, health care, fabric and home care, and baby products. P&G is the brand behind many familiar household names, including Tide, Pampers, Gillette, Crest and Olay. This gives it a dominant position in everyday essentials that consumers rely on regardless of economic conditions.
The company operates in more than 180 countries and continues to benefit from strong brand loyalty and pricing power, allowing it to navigate inflationary pressures while maintaining margins. PG has generated more than $80 billion in annual revenue in recent fiscal years and has consistently delivered steady earnings growth supported by productivity improvements and premium product offerings. While sales growth has been low over the past few quarters, Erin Lash, a senior director of consumer equity research at Morningstar, doesn’t believe this indicates cracks in the company’s competitive positioning.
PG has a market cap of $347 billion and is a true dividend king. It has paid a dividend for 136 consecutive years and just increased its dividend for the 70th consecutive year. The stock currently offers an annual forward dividend of $4.26 per share, translating to a yield of about 2.9%.
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Coca-Cola Co. (KO)
KO is also a consistent dividend payer. KO has been in business for nearly 140 years and has increased its dividend payment for the last 64 consecutive years. KO is considered a true American blue-chip stock.
KO has a market cap of nearly $330 billion and is one of the most successful nonalcoholic beverage companies in the world. Its “massive global system should reinforce its competitive standing in nonalcoholic beverages and drive excess returns for more than 20 years,” according to Kristoffer Inton, a senior equity analyst for Morningstar.
The company’s ongoing success is a function of its powerful brands. Coca-Cola owns Coke, Diet Coke, Sprite, Powerade, Minute Maid and many more household names. The company generated nearly $48 billion in net revenue in fiscal 2025 and increased earnings per share (EPS) by 4%.
KO has a forward dividend yield of 2.7%.
PepsiCo Inc. (PEP)
Consumers have long debated which is better: Coca-Cola or Pepsi. Investors, however, tend to look beyond brand loyalty and focus on business fundamentals, and PepsiCo’s diversified model has helped it stand out over time.
The global food and beverage powerhouse operates in more than 200 countries and territories, where more than a billion customers consume its products each day. Its portfolio of brands spans soft drinks, sports drinks, snacks and packaged foods. Its Frito-Lay and Quaker Foods divisions include popular brands such as Lay’s, Doritos, Cheetos and Quaker Oats. These staples support company demand as consumers continue to buy convenient snacks and beverages, even during times of economic uncertainty.
PEP has a market cap of $212.7 billion and just increased its dividend for the 54th consecutive year. The company currently pays a forward annual dividend of about $5.69 per share, which equates to a yield of roughly 3.7%.
Dollar General Corp. (DG)
As inflation squeezes household budgets, many consumers are looking for lower-cost alternatives. That shift has helped drive traffic to discount retailers like Dollar General. For investors, the company offers exposure to a segment of the consumer staples market that can perform well even in a weakening economy.
Dollar General operates more than 20,000 stores across 48 states. The company focuses on low-priced essentials such as food, household goods and basic apparel, making it a convenient option for budget-conscious shoppers. Its smaller-format stores and localized strategy allow it to maintain a strong presence in areas where larger competitors have limited reach. For instance, the majority of its stores serve towns where the nearest grocery store or mass-merchant is over 15 miles away.
DG has a market cap of about $26 billion and pays an annual dividend of approximately $2.36 per share, which translates to a yield of about 2%.
Mondelez International Inc. (MDLZ)
Even in uncertain economic environments, people love to snack. This has supported global snack producer Mondelez, whose portfolio includes worldwide favorites such as Oreo, Ritz, Cadbury and Toblerone.
The company sells its products in over 150 countries. It generates a significant portion of its revenue from international markets, particularly in Europe. A significant portion of revenue also comes from emerging markets where rising incomes are increasing demand for packaged foods and snacks.
The company has relied on pricing to offset sharply higher input costs, particularly for cocoa, helping to support revenue growth even as volumes have come under pressure. Net revenues for fiscal year 2025 were around $38.5 billion, about $2.1 billion higher than in 2024.
MDLZ has a market cap of more than $74 billion and pays a forward annual dividend of about $2 per share, equating to a yield of nearly 3.5%.
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7 Best Consumer Staples Stocks to Buy Right Now originally appeared on usnews.com
Update 04/27/26: This story was published at an earlier date and has been updated with new information.
