The Top 2 Consumer Staples Stocks to Buy Right Now

Key Points
Archer-Daniels-Midland has 53 consecutive years of dividend increases.
Hershey is forecasting a significant earnings increase for 2026.
- 10 stocks we like better than Archer-Daniels-Midland ›
Like many other investors, I've been keeping a close eye on the technology sector in the last couple of years. The explosive growth of the "Magnificent Seven" stocks pushed the S&P 500 to several new highs over the last 12 months and made many people richer.
But while tech is taking a bit of a breather, you may not have noticed that several consumer staples stocks are outperforming the market by leaps and bounds. Consumer staples stocks are issued by companies that produce and sell everyday essentials such as food, beverages, cleaning supplies, and personal care products.
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And these stocks can be even more appealing right now as global conflict and a shaky economy make a lot of consumers nervous. The best part about holding consumer staples stocks is that they often have a lower risk of losses during a recession. And because they often have reliable earnings, they also frequently offer attractive dividends.
I've found two consumer staples stocks that are off to a great start, each jumping more than 10% so far this year. And each pays a dividend yield that's far better than the 1.15% yield currently offered by the S&P 500.
Archer-Daniels-Midland
Archer-Daniels-Midland (NYSE: ADM) is a processor of agricultural products -- it essentially turns them into ingredients used to make human and animal food. The company makes protein products, sweeteners, and flavorings in its network of 150 manufacturing sites. It also makes products for chickens, horses, pigs, and other farm animals, as well as separate nutritional products and treats for household pets.
The company's stock bottomed out in April of last year before beginning to rebound. And it showed a lot of promise in Archer-Daniels-Midland's fourth-quarter results. While revenues of $18.55 billion were down from $21.49 billion and earnings per share (EPS) fell from $1.17 to $0.94, the company projected that 2026 would be a greatly improved year. Management issued guidance for 2026 earnings to be in the range of $3.60 to $4.25, versus 2025 EPS of $2.23.
"We remain on track to achieve $500 to $750 million of aggregate cost savings over the next three to five years, beginning in 2025, and we believe increased clarity on biofuel policy combined with the evolution of global trade should support a more constructive operating environment for us in 2026," CEO Juan Luciano said.
The company increased its dividend by 2%, marking the 53rd consecutive year of dividend growth, which qualifies it for Dividend King status, and its yield is currently 2.9%. The stock is up 24% so far this year.
Hershey
Hershey (NYSE: HSY) is best known for its chocolate products, but it also makes a wide range of other products. Its portfolio of 90 snack foods includes Twizzlers, Dot's Homestyle Pretzels, and Skinny Pop popcorn.
Interestingly, the company has long kept its brand portfolios siloed, so it may make sense that consumers don't realize Hershey's broad reach. But that may change, as management recently announced that it was integrating its Sweet, Salty, and Protein brands under a single portfolio to capitalize on its brand power and centralize marketing.
Revenue in the fourth quarter was $3.09 billion, up 7% from a year ago, but income dropped 57% to $320 million, and adjusted earnings fell 36% to $1.71 per share. Management attributed the drop to charges related to its 2024 purchase of Sour Stripes and its 2025 acquisition of the snack food company LesserEvil.
Hershey is expecting 2026 sales to increase 4% to 5% and full-year adjusted earnings to be in the range of $8.20 to $8.52, which would be an increase of 30% to 35% from a year ago.
Investors have pushed Hershey stock up by nearly 15% so far this year, and the company's generous dividend yields 2.7%.
Should you buy stock in Archer-Daniels-Midland right now?
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Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hershey. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.