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The Best 3 Consumer Staples Stocks to Buy and Hold for Decades

newsfeedback@fool.com (Todd Shriber)
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⚡ Quantum Brief
Consumer staples stocks are outperforming the broader market in 2026, attracting investors seeking low volatility and strong dividends despite representing just 5.3% of the S&P 500. Coca-Cola Europacific Partners (CCEP) serves 600 million consumers across 31 markets, offering dividend growth and share buybacks while benefiting from rising demand for Coca-Cola products. Keurig Dr Pepper (KDP) is finalizing an $18 billion acquisition of JDE Peet’s, splitting into two entities focused on global coffee and North American soft drinks, with $4.2B annual free cash flow expected by 2027. Clorox (CLX), down 37.6% over five years, remains a dividend stalwart with nearly five decades of payout increases, leveraging R&D to compete against generic brands. The sector’s appeal lies in brand loyalty, steady demand, and reliable income, though valuations vary widely, requiring selective investment for long-term growth.
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By Todd Shriber – Mar 13, 2026 at 4:53PM ESTKey PointsThe consumer staples sector is a favored stomping ground of investors seeking dividends and to avoid volatility.It's a sector where it can pay to look off the beaten path and it's also handily beating the broader market this year.Consumer staples stocks account for just 5.3% of the S&P 500, making it the seventh-largest sector weight in that index, but don't let that fool you. For what the sector lacks in glitz and glamour compared to, say, tech, it makes up for in familiarity. These companies make products consumers use every day, thereby creating brand loyalty. Of course, investing isn't a popularity contest. Fortunately, household products and consumer packaged goods stocks offer credible reasons for investors to pay attention, including favorable volatility profiles, above-average dividend yields, and enviable track records of payout growth. These three consumer staples stocks are worth considering as buy-and-hold investments. Image source: Getty Images. Those are attractive traits, but not all staple names possess them. It's a reminder that stocks in this sector don't move in lockstep. Nor do they all sport comparable valuations. Believe it or not, some marquee staple stocks are more expensive than Nvidia. Good news: There are still plenty of staple names for buy-and-hold investors to evaluate. Let's take a look at three of them. Unheralded stock with plenty of carbonation Earlier this month, I highlighted Coca-Cola Consolidated (COKE +3.35%) as the "other Coca-Cola stock" to consider. Keeping with the theme of evaluating unheralded soft drink equities, meet Coca-Cola Europacific Partners (CCEP 0.81%). This company is the international counterpart to Coca-Cola Consolidated, meaning it produces and ships Coca-Cola products to more than 600 million consumers in 31 markets. Like its domestic peer, the international bottler operates independent of Coca-Cola, but "big Coke" owns 19% of this company. ExpandNASDAQ: CCEPCoca-Cola Europacific Partners PlcToday's Change(-0.81%) $-0.82Current Price$100.41Key Data PointsMarket Cap$45BDay's Range$100.26 - $102.0852wk Range$81.00 - $110.90Volume70KAvg Vol1.7MGross Margin34.88%Dividend Yield2.30% This company and potentially its shares benefit from rising demand for Coca-Cola products. Plus, it's a shareholder rewards story. It's showing signs of dependable dividend growth, and it's also a dedicated buyer of its own shares. The doctor is in Changes are afoot at Keurig Dr Pepper (KDP +1.69%) as the company nears the closure of its $18 billion acquisition of JDE Peet's. From there, it will split into two entities, focusing on global coffee and North American soft drinks. That deal will lift Keurig's debt ratio, but the company had ample liquidity, including $1 billion in cash on hand, at the end of 2025. The Peet's transaction isn't small, but as the buyer digests it and separates its two core businesses, the expectation is that it will generate an average of $4.2 billion in annual free cash flow from 2027 through 2030. ExpandNASDAQ: KDPKeurig Dr PepperToday's Change(1.69%) $0.46Current Price$27.39Key Data PointsMarket Cap$37BDay's Range$27.05 - $27.4552wk Range$25.03 - $36.12Volume319KAvg Vol11MGross Margin51.58%Dividend Yield3.42% Dividend growth may be slow or even stall while the doctor pares debt following the Peet's acquisition. Still, it's expected to reaccelerate once the beverage giant's debt ratio returns to normal levels. Betting on a downtrodden staples stock Investors who follow this sector know that Clorox (CLX +1.82%) has been a dud. Over the past five years, the stock is down 37.6%, while the S&P 500 Consumer Staples index is up 32%. That wide gap understandably makes investors leery about approaching this stock. ExpandNYSE: CLXCloroxToday's Change(1.82%) $1.98Current Price$110.71Key Data PointsMarket Cap$13BDay's Range$109.56 - $111.2052wk Range$96.66 - $150.84Volume81KAvg Vol2.3MGross Margin44.04%Dividend Yield4.54% Clorox has some things going for it that could facilitate a rebound. The company is innovative, and its research and development efforts help it fend off competition from cheaper generic products. Plus, Clorox is a dividend stalwart, as its payout increase streak is approaching five decades, confirming it offers the dependability equity income investors crave.Read NextOct 27, 2025 •By Anders BylundWhy Keurig Dr Pepper Stock Jumped TodayAug 25, 2025 •By Eric VolkmanWhy Keurig Dr Pepper Stock Tanked by More Than 11% TodayApr 18, 2025 •By Parkev Tatevosian, CFA1 Undervalued Stock Relatively Insulated From Rising Tariffs That You Can Buy NowFeb 25, 2025 •By Motley Fool Markets TeamKeurig Dr Pepper: Strong Revenue SurgeNov 4, 2024 •By Jon QuastWhy Keurig Dr Pepper Stock Dropped 12% Last MonthOct 31, 2024 •By Geoffrey SeilerCan Acquisition Energize Keurig Dr Pepper Stock?Stocks MentionedKeurig Dr PepperNASDAQ: KDP$27.41(+1.78%)+$0.48CloroxNYSE: CLX$110.68(+1.79%)+$1.95Coca-Cola ConsolidatedNASDAQ: COKE$216.91(+3.44%)+$7.21Coca-Cola Europacific Partners PlcNASDAQ: CCEP$100.41(-0.81%)-$0.82*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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