The 2 Best Consumer Staples Stocks to Buy and Hold for Decades

Consumer staples companies are typically seen as relatively safe investments in a whipsawing market, as they sell essential goods that people will keep buying regardless of the uncertainty swirling around them. That provides their businesses with a level of predictability and stability.

With the volatility experienced recently in the markets, it's no surprise that some investors are looking to add shares of such companies to their portfolios.

If you're one of them, I'd suggest you consider both Costco Wholesale (NASDAQ: COST) and Walmart (NASDAQ: WMT) -- leaders in the consumer staples space that are worth buying and holding for decades.

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Loyal members

Through its bulk deals, Kirkland Signature private-label brand, and a shopping experience that inspires social media content, Costco has attracted an extremely loyal customer base.

While subscriptions and memberships are often easy expenses households look to cut during economic instability, Costco sells essential items at attractive prices, so its membership is likely to be viewed as more of a necessity than, say, a streaming music service.

For its fiscal 2026 second quarter, which ended Feb. 15, Costco reported a 92.1% member renewal rate in the U.S. and Canada and a nearly 90% worldwide renewal rate.

Costco's main appeal is in-person visits to experience the warehouse of deals, but it also has growth opportunities to expand its e-commerce capabilities. For instance, it's using members' search histories on its website and app to help make its recommendations to them more personalized, and that strategy has been showing positive results.

Costco is known for following a disciplined expansion strategy, so while it won't be building a ton of new warehouses each year, its steady pace of store openings still offers revenue growth opportunities. In particular, Costco has an opportunity to strengthen its brand globally, and projects it will expand its warehouse operations in Canada and other international locations by the end of the year.

More convenience, more sales

Walmart has always been known for its low prices and for seemingly having stores everywhere, with nearly 11,000 retail locations.

Much like the value proposition Costco offers, no matter what's happening with the economy, people will keep shopping for necessities at Walmart.

Where they differ operationally, of course, is that Costco mainly sells items in bulk volumes and offers a narrower selection of choices, while Walmart offers more flexibility in terms of item sizes and brand variety. That structure has helped Walmart tap into more robust delivery options, enabling it to meet people where they are rather than relying on them to come to it.

For example, Walmart offers drone delivery in select markets, as well as express and three-hour delivery options.

Some of its revenue growth opportunities include increasing its Walmart+ membership, which gives it a consistent cash stream to supplement its product sales.

It's also tapping into more revenue opportunities by selling advertising space on its digital platforms and in its stores.

Adding consumer staple stocks to your portfolio

Something to be aware of is that both Costco and Walmart are trading at what may be considered rich forward price-to-earnings ratios, which means more conservative investors may want to watch for a stock price pullback before starting or adding to a position in either of them.

Also, while both could be considered recession-resistant companies if the U.S. were to experience an extended economic downturn, that doesn't mean the ensuing volatility would necessarily pass them by and leave their stock prices unscathed. As I write this, over the last five days, the shares of both retailers have dropped by smaller percentages than the S&P 500, but both have still dropped.

Overall, I still believe both companies can be valuable additions to a portfolio. For long-term investors who intend to hold these stocks for decades, perfectly timing when you buy ultimately will matter less to your returns than the amount of time you plan to hold them.

Between the two, I like Walmart stock more, due to its higher dividend yield and lower beta. I also see it as having greater potential for stock price appreciation because of its tech focus. Still, both stocks are worth considering.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. The Motley Fool has a disclosure policy.