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

Some companies stand the test of time and become synonymous with greatness and excellence. There are three stocks we'll discuss here that meet this standard of success and are worth buying and holding for decades. Coca-Cola (NYSE: KO), Costco (NASDAQ: COST), and Hormel Foods (NYSE: HRL) are the cream of the consumer staples crop. Consumer staples stocks tend to be defensive and generally offer lower volatility, greater consistency, and solid dividends.

Coca-Cola is still the leader

It's likely that when you hear the phrase "consumer staple," one of the very first brands that pops into your head is Coca-Cola. This beverage giant is one of the most durable and reliable companies in the world. Coca-Cola operates in more than 200 countries and has a portfolio of over 200 beverage brands.

Coca-Cola is a free cash flow titan, which is largely how it became a Dividend King. A Dividend King is a company that has raised its dividends for more than 50 consecutive years. Coca-Cola is now well into its sixth decade of dividend increases, and its current yield is 2.67%. The company maintains an asset-light business model that keeps costs in check and profitability high.

If you don't believe me and my reasons for owning and keeping Coca-Cola, know that Warren Buffett's Berkshire Hathaway purchased shares back in 1988 and has never sold.

Coca-Cola isn't a high-growth company, but it is still expanding. The company released its full fiscal year 2025 results in February, and organic revenue was up 5%. For the 2026 outlook, Coca-Cola expects much of the same, with a 4% to 5% increase. Mid-single-digit growth and six decades of increasing dividends make this a solid long-term buy-and-hold stock.

Image source: Getty Images.

Costco competes on high retention and low prices

Yes, the $1.50 hot dog-and-drink combo is enough to get many cost-conscious customers through the door, but the real reason Costco will dominate for decades is its stellar membership model and renewal rate.

Costco stock does trade at a premium, but the company's consistent performance more than justifies it. Not only does Costco provide investors with strong growth, but it also pays regular and special dividends to shareholders. Costco's dividend yield is low at 0.52%, but I prefer Costco for its plan to continue expanding its footprint.

Costco is growing internationally, and its flywheel is impressive. Costco's competitive pricing attracts more members, those members continue to renew, and Costco can keep its prices lower than its competitors'. It's going to be very difficult to beat Costco over the next several years.

Costco has a bit more to offer than Coca-Cola in the way of growth. The company reported an 8.1% increase in net sales in the 2025 fiscal year. For the first two quarters of 2026, Costco improved even more to an 8.7% net sales increase. Costco stock is expensive, but there's a lot to love about its growth and income.

Hormel is quietly consistent

Last, but definitely not least, Hormel Foods is a stock you should buy and hold for a very long time. As another Dividend King, Hormel has paid a consistent dividend for nearly a century and has raised the dividend for 60 years.

Where Costco trades at premium prices, Hormel's stock is quite inexpensive, particularly for a long-term investor. The company has faced headwinds recently, pushing the stock 15% lower over the past 12 months. This price drop has also increased Hormel's dividend yield to 5.0% as of March 10.

Hormel's latest quarterly earnings were cautiously optimistic. The food business reported a 2% increase in net sales, marking its fifth consecutive quarter of net sales growth. Hormel also reaffirmed its 2026 guidance, which could see organic sales growth of 1% to 4%.

Hormel knows how to navigate challenges and will remain a global food leader for the foreseeable future.

These three stocks are great options for a variety of long-term investors. From their business fundamentals to their global brand recognition, Coca-Cola, Costco, and Hormel Foods are worth buying and holding on to for decades.

Catie Hogan has positions in Coca-Cola. The Motley Fool has positions in and recommends Berkshire Hathaway and Costco Wholesale. The Motley Fool has a disclosure policy.