Investors with an appetite for a good comeback story may want to look at consumer staples stocks. With the Consumer Staples Select Sector SPDR Fund NYSEARCA: XLP almost flat in 2025, it would not take much effort to find beaten-down names in the sector.
Dividend aristocrats get plenty of attention, but most of the time the spotlight falls on the big names like Johnson & Johnson (NYSE:JNJ), Coca-Cola (NYSE:KO), and Procter & Gamble (NYSE:PG), among others.
Hormel Foods trades near 52-week lows with a forward P/E of 15.7 and an attractive 5.1% dividend yield. HRL demonstrates resilient organic growth across all segments, supported by strong brands and ongoing portfolio modernization. Management guides for 1%–4% organic sales growth and 7% operating income growth midpoint in fiscal 2026 as margin pressures ease.
The No. 1 hash brand for more than 70 years expands its lineup with bold flavors designed to stretch meals and simplify busy nights AUSTIN, Minn., Jan. 6, 2026 /PRNewswire/ -- When the weather turns cold, comfort food takes center stage, and HORMEL® MARY KITCHEN® Hash is delivering with two skillet products now available at select retailers nationwide.
Coca-Cola, Hormel, and P&G have all achieved at least 60 annual dividend increases. Each of the companies operates in the resilient consumer staples sector.
PepsiCo (PEP), Hormel (HRL), and Lowe's (LOW) are long-term buys, all trading at attractive valuations after sector underperformance in 2025. PEP offers a nearly 4% yield, a 53-year dividend growth streak, and catalysts from cost-cutting and new product initiatives. HRL is undervalued with a 4.8% yield and potential turnaround under the interim CEO.
The consumer staples sector is out of favor with investors. I sold my holdings in Clorox and Hormel to capture tax losses, with plans to repurchase them both in early 2026.
A return to a lower interest rate environment could lead to a re-rating for Federal Realty, a retail-focused REIT. An easing of inflationary pressures could boost Hormel's earnings, in turn potentially driving dividend growth and share price appreciation.
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