Consumer Staples Stocks as Safe Havens
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 14 2026
0mins
Source: Yahoo Finance
- Defensive Nature of Staples: Amid economic uncertainty and escalating geopolitical tensions in the Middle East, consumer staples companies like Coca-Cola and Procter & Gamble are viewed as safe havens, making them suitable for investors looking to protect their assets during turbulent times.
- Appeal of Dividend Kings: Both Coca-Cola and Procter & Gamble are Dividend Kings, having raised dividends for 50 consecutive years, which reflects their strong business plans and commitment to shareholder returns, with Coca-Cola currently yielding 2.6% and P&G at 2.8%, significantly higher than the S&P 500's 1.1% yield.
- Opportunity in Reasonable Pricing: While industry leaders like Coca-Cola and Procter & Gamble rarely go on sale, their current price-to-earnings and price-to-book ratios are below long-term averages, indicating a potentially good entry point for long-term investors over the next decade.
- Combination of Quality and Price: In the current market environment, investors should focus on the high-quality offerings and substantial dividend yields from Coca-Cola and Procter & Gamble, especially as these companies demonstrate strong resilience against economic and market fluctuations.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on PG
Wall Street analysts forecast PG stock price to rise
17 Analyst Rating
10 Buy
7 Hold
0 Sell
Moderate Buy
Current: 144.090
Low
150.00
Averages
164.50
High
180.00
Current: 144.090
Low
150.00
Averages
164.50
High
180.00
About PG
The Procter & Gamble Company is focused on providing branded consumer packaged goods to consumers across the world. The Company’s segments include Beauty, Grooming, Health Care, Fabric & Home Care and Baby, Feminine & Family Care. The Company’s products are sold in approximately 180 countries and territories primarily through mass merchandisers, e-commerce, including social commerce channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, including airport duty-free stores), high-frequency stores, pharmacies, electronics stores and professional channels. It also sells direct to individual consumers. It has operations in approximately 70 countries. It offers products under brands, such as Head & Shoulders, Herbal Essences, Pantene, Rejoice, Olay, Old Spice, Safeguard, Secret, SK-II, Braun, Gillette, Venus, Crest, Oral-B, Ariel, Downy, Gain, Tide, Always, Always Discreet, Tampax, Bounty and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Surging Oil Prices Prompt Defensive Investment Strategies
- Oil Price Surge Impact: The ongoing conflict with Iran has caused oil prices to skyrocket this year, potentially leading to a recession that could depress stock prices, prompting investors to adopt more defensive investment strategies to mitigate risks.
- Enbridge's Stability: Enbridge (ENB), a leading North American energy infrastructure company, derives over 98% of its annual earnings from stable cost-of-service or contracted frameworks, achieving financial guidance for 20 consecutive years, including during two major recessions, demonstrating its predictable cash flow and resilience.
- Procter & Gamble's Resilience: Procter & Gamble (PG), a consumer goods giant, has paid dividends for 135 consecutive years and increased its payouts for 69 straight years, with expectations of low-to-mid single-digit organic sales and earnings growth this year, showcasing its robustness amid economic uncertainty.
- Realty Income's Investment Plans: Realty Income (O) plans to invest $8 billion this year to expand its global real estate portfolio, supported by stable rental income from long-term net leases, and has increased its dividend for 31 consecutive years, indicating its ability to maintain cash flow growth even during economic downturns.
See More
Resilient Dividend Stocks Amid Rising Oil Prices
- Stable Cash Flow: Enbridge, a leading North American energy infrastructure company, has achieved its annual financial guidance for 20 consecutive years, demonstrating resilience in its business model even through two major recessions, which ensures predictable cash flow.
- Dividend Growth History: Procter & Gamble, a consumer goods giant, has increased its dividend for 69 straight years, with demand for its products remaining strong during economic downturns, and it expects to achieve low-to-mid single-digit sales and earnings growth, further solidifying its market position.
- Resilient REIT Performance: Realty Income, a leading global real estate investment trust, has raised its dividend for 31 consecutive years, with a diversified property portfolio that provides stable rental income even during economic downturns, and it plans to invest $8 billion this year to expand its global real estate portfolio.
- Defensive Investment Strategy: Given the surge in oil prices due to the war with Iran, which could trigger a recession, investors should consider increasing their holdings in resilient stocks like Enbridge, Procter & Gamble, and Realty Income to ensure stable returns in uncertain market conditions.
See More
Global Financial Markets Face Recession Risks Amid Energy Shock
- Energy Shock Impact: According to BCA Research, the ongoing energy shock from the Middle East is overshadowing inflation concerns, with market stability relying on temporary buffers; if this disruption continues into mid-April, a rapid shift to recession pricing could undermine investor confidence.
- Economic Growth Contraction Warning: The report highlights that the current oil and gas shortages, while masked by temporary measures, are shifting investor constraints from price pressures to economic growth contraction, indicating potential downturn risks for the global economy.
- Central Bank Policy Shift: Despite current hawkish monetary policies aimed at combating high inflation, BCA expects central banks to gradually
See More
Impact of Trump's Tariffs One Year Later
- Widespread Tariff Impact: Trump's tariff policies have placed significant economic pressure on U.S. businesses over the past year, with approximately 80% to 85% of costs absorbed by companies, leading to reduced profits and increased consumer prices, thereby exacerbating overall economic uncertainty.
- Retail Sector Adaptation: While large retailers like Walmart have emerged relatively unscathed, smaller businesses have been severely impacted, with Home Depot aiming to limit purchases from any single country to 10% to reduce dependency and enhance supply chain flexibility.
- Automotive Industry Cost Surge: Automakers such as General Motors and Toyota are facing tariff impacts estimated at up to $9.5 billion, and although the Trump administration has taken steps to alleviate overlapping tariffs, overall costs remain significant, forcing companies to reassess their supply chain strategies.
- Pharmaceutical Sector Stability: Pharmaceutical companies have secured three-year tariff exemptions through pricing agreements with Trump, although new tariffs impose 100% on companies that do not reach agreements, the overall industry is still striving to increase investments in U.S. manufacturing.
See More
Investors Heighten Concerns Over Economic Recession
- Recession Probability Fluctuations: According to Kalshi, the probability of a recession in 2025 exceeded 40% but dropped below 20% in February this year, only to rebound to 28% as of April 1, reflecting the impact of poor economic data and international tensions on market sentiment.
- GDP Revision Impact: The U.S. fourth-quarter GDP was revised down to 0.7% in March, increasing the risk of economic slowdown, and investors should be aware of the potential for two consecutive quarters of negative growth, which could be viewed as a shallow recession.
- Consumer Staples ETF Performance: The State Street Consumer Staples Select Sector SPDR ETF (XLP) has performed well amid market turmoil, rising 5% this year, with major holdings including Walmart (11.85%) and Coca-Cola (6.46%), demonstrating the resilience of consumer staples in uncertain economic conditions.
- Utilities ETF Stability: The Vanguard Utilities ETF (VPU) has also shown strong performance, up approximately 5% this year, with key holdings like NextEra Energy (11.95%) and Southern (6.38%), indicating that utility stocks' defensive characteristics are attracting investors amid recession fears.
See More
Netflix Raises Subscription Prices Again, Testing User Loyalty
- Price Increase Impact: Netflix has raised its U.S. subscription prices, with the standard and premium tiers increasing by $2 and the ad-supported tier by $1, reflecting a significant 28.6% rise for the ad-supported tier and 29.1% for the standard tier since October 2023, indicating a bold strategy to boost revenue while risking user attrition.
- User Attrition Risk: By increasing prices on lower-cost subscription tiers, Netflix risks driving users out of its ecosystem entirely, especially in a competitive streaming market where price sensitivity is high, potentially impacting the company's long-term growth prospects if users switch to more affordable alternatives.
- Confidence in Content Expansion: Netflix's strategy to enhance its value proposition through expanded content offerings, including sports, demonstrates its confidence in maintaining user loyalty despite inflationary pressures, which is crucial in the current economic climate where consumer spending is strained.
- Investment Appeal: Despite the challenges posed by price increases, Netflix's business model, which relies on high-margin recurring revenue and predictable cash flows, continues to attract investors, positioning the company as a relatively stable investment option amid economic uncertainty, reinforcing its status as a foundational holding in diversified portfolios.
See More
Surging Oil Prices Prompt Defensive Investment Strategies
- Oil Price Surge Impact: The ongoing conflict with Iran has caused oil prices to skyrocket this year, potentially leading to a recession that could depress stock prices, prompting investors to adopt more defensive investment strategies to mitigate risks.
- Enbridge's Stability: Enbridge (ENB), a leading North American energy infrastructure company, derives over 98% of its annual earnings from stable cost-of-service or contracted frameworks, achieving financial guidance for 20 consecutive years, including during two major recessions, demonstrating its predictable cash flow and resilience.
- Procter & Gamble's Resilience: Procter & Gamble (PG), a consumer goods giant, has paid dividends for 135 consecutive years and increased its payouts for 69 straight years, with expectations of low-to-mid single-digit organic sales and earnings growth this year, showcasing its robustness amid economic uncertainty.
- Realty Income's Investment Plans: Realty Income (O) plans to invest $8 billion this year to expand its global real estate portfolio, supported by stable rental income from long-term net leases, and has increased its dividend for 31 consecutive years, indicating its ability to maintain cash flow growth even during economic downturns.
See More
Resilient Dividend Stocks Amid Rising Oil Prices
- Stable Cash Flow: Enbridge, a leading North American energy infrastructure company, has achieved its annual financial guidance for 20 consecutive years, demonstrating resilience in its business model even through two major recessions, which ensures predictable cash flow.
- Dividend Growth History: Procter & Gamble, a consumer goods giant, has increased its dividend for 69 straight years, with demand for its products remaining strong during economic downturns, and it expects to achieve low-to-mid single-digit sales and earnings growth, further solidifying its market position.
- Resilient REIT Performance: Realty Income, a leading global real estate investment trust, has raised its dividend for 31 consecutive years, with a diversified property portfolio that provides stable rental income even during economic downturns, and it plans to invest $8 billion this year to expand its global real estate portfolio.
- Defensive Investment Strategy: Given the surge in oil prices due to the war with Iran, which could trigger a recession, investors should consider increasing their holdings in resilient stocks like Enbridge, Procter & Gamble, and Realty Income to ensure stable returns in uncertain market conditions.
See More
Global Financial Markets Face Recession Risks Amid Energy Shock
- Energy Shock Impact: According to BCA Research, the ongoing energy shock from the Middle East is overshadowing inflation concerns, with market stability relying on temporary buffers; if this disruption continues into mid-April, a rapid shift to recession pricing could undermine investor confidence.
- Economic Growth Contraction Warning: The report highlights that the current oil and gas shortages, while masked by temporary measures, are shifting investor constraints from price pressures to economic growth contraction, indicating potential downturn risks for the global economy.
- Central Bank Policy Shift: Despite current hawkish monetary policies aimed at combating high inflation, BCA expects central banks to gradually
See More
Impact of Trump's Tariffs One Year Later
- Widespread Tariff Impact: Trump's tariff policies have placed significant economic pressure on U.S. businesses over the past year, with approximately 80% to 85% of costs absorbed by companies, leading to reduced profits and increased consumer prices, thereby exacerbating overall economic uncertainty.
- Retail Sector Adaptation: While large retailers like Walmart have emerged relatively unscathed, smaller businesses have been severely impacted, with Home Depot aiming to limit purchases from any single country to 10% to reduce dependency and enhance supply chain flexibility.
- Automotive Industry Cost Surge: Automakers such as General Motors and Toyota are facing tariff impacts estimated at up to $9.5 billion, and although the Trump administration has taken steps to alleviate overlapping tariffs, overall costs remain significant, forcing companies to reassess their supply chain strategies.
- Pharmaceutical Sector Stability: Pharmaceutical companies have secured three-year tariff exemptions through pricing agreements with Trump, although new tariffs impose 100% on companies that do not reach agreements, the overall industry is still striving to increase investments in U.S. manufacturing.
See More
Investors Heighten Concerns Over Economic Recession
- Recession Probability Fluctuations: According to Kalshi, the probability of a recession in 2025 exceeded 40% but dropped below 20% in February this year, only to rebound to 28% as of April 1, reflecting the impact of poor economic data and international tensions on market sentiment.
- GDP Revision Impact: The U.S. fourth-quarter GDP was revised down to 0.7% in March, increasing the risk of economic slowdown, and investors should be aware of the potential for two consecutive quarters of negative growth, which could be viewed as a shallow recession.
- Consumer Staples ETF Performance: The State Street Consumer Staples Select Sector SPDR ETF (XLP) has performed well amid market turmoil, rising 5% this year, with major holdings including Walmart (11.85%) and Coca-Cola (6.46%), demonstrating the resilience of consumer staples in uncertain economic conditions.
- Utilities ETF Stability: The Vanguard Utilities ETF (VPU) has also shown strong performance, up approximately 5% this year, with key holdings like NextEra Energy (11.95%) and Southern (6.38%), indicating that utility stocks' defensive characteristics are attracting investors amid recession fears.
See More
Netflix Raises Subscription Prices Again, Testing User Loyalty
- Price Increase Impact: Netflix has raised its U.S. subscription prices, with the standard and premium tiers increasing by $2 and the ad-supported tier by $1, reflecting a significant 28.6% rise for the ad-supported tier and 29.1% for the standard tier since October 2023, indicating a bold strategy to boost revenue while risking user attrition.
- User Attrition Risk: By increasing prices on lower-cost subscription tiers, Netflix risks driving users out of its ecosystem entirely, especially in a competitive streaming market where price sensitivity is high, potentially impacting the company's long-term growth prospects if users switch to more affordable alternatives.
- Confidence in Content Expansion: Netflix's strategy to enhance its value proposition through expanded content offerings, including sports, demonstrates its confidence in maintaining user loyalty despite inflationary pressures, which is crucial in the current economic climate where consumer spending is strained.
- Investment Appeal: Despite the challenges posed by price increases, Netflix's business model, which relies on high-margin recurring revenue and predictable cash flows, continues to attract investors, positioning the company as a relatively stable investment option amid economic uncertainty, reinforcing its status as a foundational holding in diversified portfolios.
See More
