The Best 2 Consumer Staples Stocks to Buy and Hold for Decades
The Best 2 Consumer Staples Stocks to Buy and Hold for Decades
Reuben Gregg Brewer, The Motley FoolSat, March 14, 2026 at 4:35 AM UTC
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Key Points -
Coca-Cola is a Dividend King and a leader in the beverage industry.
Procter & Gamble is a Dividend King and a leader in the consumer products space.
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Consumer staples companies sell products that get bought in good times and bad. That's why they are considered safe-haven investments during times of uncertainty. Given the economic concerns among consumers and the unfolding geopolitical conflict in the Middle East, now could be a good time to err on the side of caution. Which is why stocks like Coca-Cola (NYSE: KO) and Procter & Gamble (NYSE: PG) could be perfect fits for your portfolio.
Consumer staples and Dividend Kings
Coca-Cola is the world's largest non-alcoholic beverage maker, with iconic brands that stretch well beyond its namesake Coke. Procter & Gamble is also one of the world's largest consumer staples companies, with a portfolio of brands that range from toilet paper to toothpaste. But there's something even more interesting that links these two companies. They are both Dividend Kings.
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The word Dividends in yellow on a blackboard with doodles around it.
Image source: Getty Images.
Reaching the elite status of Dividend King requires a company to increase its dividend annually for at least 50 consecutive years. A company can only do that if it has a strong business plan that gets executed well in both good times and bad. It also shows that a company places a high value on returning value to shareholders over time via dividend payments.
Both Coca-Cola and Procter & Gamble have proven they are resilient businesses. And right now, Coca-Cola is offering a dividend yield of 2.6% while P&G is yielding 2.8%. For comparison, the S&P 500 index (SNPINDEX: ^GSPC) is yielding only 1.1% or so.
Coca-Cola and P&G are reasonably priced
Industry-leading businesses like Coca-Cola and Procter & Gamble don't go on sale very often. But even a fair price is likely to be a good entry point if your holding period is a decade or longer. P&G's price-to-sale, price-to-earnings, and price-to-book ratios are all below their five year averages. Coca-Cola's P/E and P/B ratios are below their long-term averages, while the P/S ratio is just slightly higher. Thus, they both appear at least reasonably priced, if not a little cheap.
The big story here, however, is that you want to focus on both quality and price when your holding period is measured in decades. And right now, Coca-Cola and Procter & Gamble appear to be offering a massive amount of quality for the price, with well above market dividend yields thrown in for good measure.
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If you are worried about the market, the economy, or geopolitical tensions, now could be the perfect time to add consumer staples Dividend Kings Coca-Cola and Procter & Gamble to your dividend portfolio.
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Reuben Gregg Brewer has positions in Procter & Gamble. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Source: “AOL Money”
