3 Monster Consumer Stocks to Hold for the Next 20 Years

Buying a stock in the hopes of holding it for 20 years or longer can be a difficult task. Warren Buffett likes to say his favorite holding period is "forever," but his trading history shows he has sold holdings, even after owning them for decades.

Knowing that, investors should look for holdings with the potential to survive and thrive for decades. Fortunately, investors have plenty of options, and these three well-established consumer staples stocks should stand out.

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1. PepsiCo

The public knows PepsiCo (NASDAQ: PEP) best for its flagship cola. Nonetheless, the company owns numerous well-known beverage and food brands, including Gatorade, Mountain Dew, Tostitos, and Quaker.

Its stock had suffered in recent years as the public turned against unhealthy beverages and packaged foods. PepsiCo has since pivoted, emphasizing healthier ingredients in its products and buying brands such as Siete to bolster this reputation.

This approach may have worked. The company reported flat revenue growth in fiscal 2025. However, in the second quarter of fiscal 2026 (ended June 13), revenue of $24.2 billion rose by 7% compared to the year-ago quarter. Also, keeping its costs and expenses in check helped lead to a net income of $3 billion for the same period. That was far above the $1.3 billion earned over the same time frame last year.

Investors seem slow to have noticed this improvement, and therein lies the opportunity. Due to a falling stock price, its P/E ratio is down to just 16, the lowest level since 2019.

Moreover, true to form, PepsiCo just extended its dividend streak, and its 54 years of annual payout hikes took the yearly dividend to $5.92 per share. That amounts to a yield of 4.7%, far above the S&P 500's (SNPINDEX: ^GSPC) 1.1% average. Amid such improvements, investors may want to consider buying this stock before more of them take notice of this bargain.

2. J.M. Smucker

Like PepsiCo, J.M. Smucker (NYSE: SJM) is known for a flagship product: jam, in this case. Nonetheless, numerous food products, including Milk Bone and Hostess, are also under its umbrella.

Among these factors, its position in the coffee business may have led to a rise in its stock price in recent months. Coffee tends not to have the health concerns of other packaged food products. The company's pricing power, driven by its brands Dunkin', Folgers, and Café Bustelo, may have helped boost its stock.

That likely contributed to its fiscal Q1 (ended July 31) revenue of $2.2 billion, up 5% from the previous year. The company also received a boost from tariff refunds. That helped it earn a $324 million profit in the quarter, up from a $44 million loss one year ago.

Fortunately, it may not be too late to buy. It trades at 55 times earnings amid the recent return to profitability, but an 11 forward P/E ratio indicates the stock is cheaper than it appears.

Additionally, its $4.48-per-share annual dividend has risen for 25 straight years. With a dividend yield of 3.8%, investors can earn a significant payout that is on track to keep rising. It also pays investors to wait, as continued growth should lead to stock gains.

3. Clorox

Clorox (NYSE: CLX) is another venerable consumer-brand empire that has fallen on hard times. In addition to its flagship bleach product, Hidden Valley, Burt's Bees, and Purell are among the brands it owns.

Clorox stock has suffered for years. A long, expensive process of upgrading its enterprise resource planning system weighed on the stock price for several years. Also, the war in Iran has made many of its inputs more expensive, and investors will have to buy the stock in a time of distress if they purchase now.

In fiscal Q4 (ended June 30), net sales of just more than $1.9 billion decreased by 2%. Also, while it earned a $163 million profit, the rising cost of goods sold led to a decline from $332 million one year ago.

Consequently, Clorox stock is at its lowest point since 2013. Also, despite falling earnings, its P/E ratio is just 17, suggesting its stock has priced in the company's challenges.

Moreover, its dividend has risen annually for decades. At $5 per year, the yield is up to 6.1%, exceeding the 5.7% rate on the 30-year Treasury. Strong branding has typically helped stocks like Clorox to recover. That factor suggests it is worthwhile to take a chance on this stock to collect the dividend now and likely benefit from a rising stock price later.

Will Healy has positions in Clorox. The Motley Fool has positions in and recommends J.M. Smucker. The Motley Fool has a disclosure policy.