Buy 5 High-Yielding Giant Consumer Staples Stocks for a Stable Portfolio
U.S. stock markets witnessed severe volatility in the first half of 2025 unlike a smooth rally seen in the last two years. Volatility was triggered by several factors. Prominent among them were the imposition of tariffs by the Trump administration on almost all countries across the world, fears of higher inflation and a near-term recession and concerns regarding the continuation of momentum among the much-hyped U.S. artificial intelligence-based behemoths.
Of late, Wall Street returned to its northbound trajectory, following positive developments on global tariffs and trade, a gradually declining inflation rate, trade-related negotiations and a series of recently released economic data, following which fears of an impending recession evaporated.
However, we are not out of the woods. The most important trade deal between the United States and China is yet to be finalized. Heightened geopolitical conflicts in the Middle-East between Israel and Iran and more than three years of war between Russia and Ukraine are the latest sources of fluctuation in U.S. stock markets.
At this stage, investment in defensive stocks like consumer staples to stabilize your portfolio should be a prudent strategy. Our recommended five high-dividend paying consumer staples stocks with a favorable Zacks Rank are: Philip Morris International Inc. PM, The Coca-Cola Co. KO, Mondelez International Inc. MDLZ, Altria Group Inc. MO and Corteva Inc. CTVA. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The consumer staples sector is mature and fundamentally strong as demand for such services is generally immune to changes in the economic cycle. The consumer staples sector includes companies that provide necessities and products for daily use. This makes the sector defensive in nature.
Therefore, this has always been a go-to place for investors, who want to play it safe during extreme market fluctuations irrespective of internal or external disturbances. Moreover, the sector is known for the stability and visibility of its earnings and cash flows. Consequently, adding stocks from the consumer staples basket lends more stability to one's portfolio.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
Philip Morris has benefited from strong pricing power and an expanding smoke-free product portfolio. PM has been making significant progress on its smoke-free transition, with products like IQOS and ZYN contributing to strong performance. In fact, PM aims to become substantially smoke-free by 2030.
Philip Morris is set for another year of robust growth in 2025, driven by increasing demand across all product categories. PM anticipates positive volume growth for the fifth consecutive year, with an expected increase of 2%. Smoke-free products remain a key growth driver, projected to expand by 12-14%, reinforcing PM's strategic shift toward reduced-risk alternatives.
Philip Morris has an expected revenue and earnings growth rate of 8.1% and 13.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.6% over the last 60 days. PM has a current dividend-yield of 2.94%.
The Coca-Cola delivered a strong first-quarter 2025, marking its ninth consecutive quarter of beating top- and bottom-line expectations. First-quarter 2025 performance was driven by broad-based growth, improved price/mix, and effective execution of its all-weather strategy, which blends marketing, innovation, and revenue growth management. Innovation and marketing continue to drive KO's brand momentum, with impactful campaigns and product launches.
Coca-Cola's all-weather strategy, combining marketing, innovation, and revenue growth management, supports its vision of a total beverage company and is expected to drive revenue growth in 2025. KO has provided an optimistic view for 2025.
Coca-Cola has an expected revenue and earnings growth rate of 2.5% and 3.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 30 days. KO has a current dividend-yield of 2.93%.
Mondelez International is well-positioned for continued growth, driven by strategic pricing, strong performance in core categories, and portfolio reshaping efforts. In first- quarter 2025, MDLZ's organic net revenues rose 3.1%, fueled by a 6.6 percentage points increase in pricing. Mondelez's focus on chocolate and biscuits — its core segments — continues to deliver resilience and market share gains, with chocolate growing 10.1% in the quarter.
Strategic acquisitions like Clif Bar, along with divestitures of non-core assets, have enhanced MDLZ's focus on high-growth areas. Consistent investments in innovation and global brand activations remain key growth drivers. With ongoing investments in brand building, innovation, and operational efficiency, MDLZ expects to deliver nearly 5% organic net revenue growth in 2025.
Mondelez International has an expected revenue and earnings growth rate of 5.3% and -10.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 30 days. MDLZ has a current dividend-yield of 2.83%.
Altria Group has been navigating market uncertainties with the support of its pricing power and focus on smoke-free products. Pricing offered respite to first-quarter 2025 results, which were otherwise hurt by weaker volumes. Volumes are low in the Smokeable Product unit, as the cigarette industry is under pressure due to the macroeconomic challenges and the rapid growth of illegal disposable e-vapor products.
MO's Oral Tobacco Products unit saw a setback following regulatory challenges that led to the discontinuation of NJOY ACE, resulting in reduced volumes. However, MO is confident in its ability to reenter the category with innovative, high-quality products that meet the evolving needs of adult consumers. This, coupled with the strength of its traditional tobacco business, such as the Marlboro brand, positions MO for growth.
Altria Group has an expected revenue and earnings growth rate of -1.4% and 5.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last 30 days. MO has a current dividend-yield of 6.92%.
Corteva operates in the agriculture business. CTVA operates through two segments, Seed and Crop Protection. Its operations are spread in the United States, Canada, Latin America, the Asia Pacific, Europe, the Middle East, and Africa.
The Seed segment of CTVA develops and supplies advanced germplasm and traits that produce optimum yield for farms. It offers trait technologies that enhance resistance to weather, disease, insects, and herbicides used to control weeds, as well as food and nutritional characteristics. It also provides digital solutions that assist farmer decision-making with a view to optimizing product selection and maximizing yield and profitability.
The Crop Protection segment of CTVA offers products that protect against weeds, insects and other pests, and diseases, as well as enhance crop health above and below ground through nitrogen management and seed-applied technologies. CTVA provides herbicides, insecticides, nitrogen stabilizers, and pasture and range management herbicides. It also serves the agricultural input industry.
Corteva has an expected revenue and earnings growth rate of 2.5% and 16.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 60 days. CTVA has a current dividend yield of 0.92%.
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CocaCola Company (The) (KO) : Free Stock Analysis Report
Altria Group, Inc. (MO) : Free Stock Analysis Report
Philip Morris International Inc. (PM) : Free Stock Analysis Report
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
Corteva, Inc. (CTVA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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