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

By Will Healy – Mar 28, 2026 at 7:53AM ESTKey PointsA potential Target comeback could make this stock a solid growth and income play.The continuing need for oil and gas should continue to boost Chevron and its dividend.PepsiCo has revived sales growth, which should strengthen its generous dividend.In an environment of heightened geopolitical tensions, investors tend to get nervous. Such events can have varying effects on the economy, which tends to hurt growth-oriented stocks. Such times may call for rotating increasingly into consumer staples stocks, as those offer dividend returns and sell products that are necessary in any economy. Knowing that, investors may have a particularly compelling opportunity in these three consumer staples stocks. Image source: Getty Images. Target Admittedly, Target (TGT +2.33%) may seem a bit risky in today's environment. Over the last few years, challenges like high inventories, poor product selection, messy stores, and unpopular political stances have alienated customers. To that end, sales fell by 2% in fiscal 2025 (ended Jan. 31). Nonetheless, longtime Target executive Michael Fiddelke took over as CEO on Feb. 1. He outlined a plan to spend $5 billion over the next few years to upgrade stores, hire more in-store personnel, improve its AI capabilities, and improve marketing. Furthermore, the outlook appears positive with analysts forecasting 3% net sales growth in fiscal 2026. Also, even with its troubles, Target can maintain the dividend it has increased for 54 consecutive years. At $4.56 per share annually, it yields almost 4%, well above the S&P 500's 1.2% average. Despite its challenges, Target can probably maintain its payout. It cost the company $2.05 billion in fiscal 2025, but its $2.84 billion in free cash flow should cover that cost. ExpandNYSE: TGTTargetToday's Change(2.33%) $2.73Current Price$119.73Key Data PointsMarket Cap$54BDay's Range$116.89 - $121.4252wk Range$83.44 - $126.00Volume290KAvg Vol6.5MGross Margin25.44%Dividend Yield3.79% Finally, investors should consider its 14 P/E ratio, far below the 45 earnings multiple for Walmart. Even though Walmart has maintained positive growth, Target's massive discount and sustainable dividend could help the stock soar in 2026. Chevron As a gasoline retailer, Chevron (CVX +1.62%) remains in a strong position to prosper. This stretches beyond immediate concerns such as conflict in the Middle East. For all of the focus on renewables, gasoline-powered cars are still over 90% of cars on the road, according to the Institute for Energy Research. Also, petroleum and natural gas account for 70% of all energy used in the U.S., according to the U.S.

Energy Information Administration (EIA). These indicate Chevron's products will remain essential for decades to come. Additionally, Chevron's dividend, which has risen for 39 straight years, pays investors $7.12 per share annually, a cash return of 3.3%. The dividend cost the company $12.8 billion in 2025. Still, since it generated $16.6 billion in the same time frame, the annual payout hikes can likely continue. ExpandNYSE: CVXChevronToday's Change(1.62%) $3.36Current Price$211.15Key Data PointsMarket Cap$421BDay's Range$206.25 - $212.4652wk Range$132.04 - $212.46Volume14MAvg Vol13MGross Margin14.66%Dividend Yield3.27% Overall, the stock has more than doubled in value over the last five years, and the stock may seem slightly pricey at 31 times earnings. Nonetheless, as Chevron continues to be a major gasoline provider in the U.S., it is well positioned to be an excellent growth and income stock for its shareholders. PepsiCo The name PepsiCo (PEP +1.57%) may lead investors to key in on its flagship beverage. However, the company is a beverage and food conglomerate, including products such as Gatorade, Aquafina water, Quaker Oats, and Doritos snack foods. Admittedly, with consumers turning more toward healthier foods and beverages, PepsiCo may not have been as recession-resistant as some investors might assume. Fortunately, the company has worked to revitalize brands. It is also cutting costs by utilizing AI and closing less productive plants. ExpandNASDAQ: PEPPepsiCoToday's Change(1.57%) $2.36Current Price$153.19Key Data PointsMarket Cap$209BDay's Range$150.58 - $154.5152wk Range$127.60 - $171.48Volume369KAvg Vol7.9MGross Margin54.36%Dividend Yield3.72% Moreover, its dividend, which has risen for 54 straight years, is $5.69 per share annually and yields a 3.8% return. Investors need to watch its $8.1 billion in free cash flow, which has become uncomfortably close to the $7.6 billion in dividend costs. Here, investors have to remember that an end to the dividend increases would probably damage the stock's reputation, making a dividend cut unlikely. It also faces a challenge with its P/E ratio of 25, especially since archrival Coca-Cola trades at roughly the same valuation. Still, Coca-Cola's 2.75% dividend yield is much lower. Additionally, PepsiCo's $93 billion in revenue grew 2%, indicating its efforts to reinvigorate growth have begun to bear fruit. That should ultimately benefit shareholders, who will earn dividend income while they wait for a stock rebound.Read NextMar 26, 2026 •By Adria CiminoThis Previously Down-on-Its-Luck Stock Has Been Quietly Outperforming the Market. Time to Buy?Mar 23, 2026 •By Jeremy BowmanCan Target's New Circle Deal Days Spark a Turnaround for the Retail StockMar 22, 2026 •By Travis HoiumThe 3 Best Dividend Stocks to Buy Now and Hold ForeverMar 22, 2026 •By Rachel WarrenBest Apparel Stocks to Buy in 2026 and How to Invest in ThemMar 20, 2026 •By Parkev Tatevosian, CFAShould Passive Income Investors Buy Target Stock?Mar 18, 2026 •By Rachel Warren9 Best Dividend Stocks to Buy and Hold for March 2026About the AuthorWill Healy is a contributing Motley Fool stock market analyst covering technology and consumer goods industries.

Before The Motley Fool, Will was a freelance writer covering stocks and personal finance for MSN Money, Yahoo! Finance, and Nasdaq. Earlier in his career, he was an expert in geographic information systems, applying spatial and IT skills to perform RF and demographic analysis in the telecom industry. He holds a bachelor’s degree in journalism from Texas A&M University and an MBA in finance and strategy from the University of Texas at Dallas.TMFWillHealyX@HealyWritingStocks MentionedTargetNYSE: TGT$119.73(+2.33%)+$2.73ChevronNYSE: CVX$211.33(+1.70%)+$3.54PepsiCoNASDAQ: PEP$153.19(+1.57%)+$2.36*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.