Consumer Staples Stocks: 2 Dividend Kings Outperforming the Market Now
Shares of Archer-Daniels-Midland (ADM) and Hershey (HSY) are leading a surprising surge among consumer staples stocks, bucking a trend of cautious investor sentiment surrounding the broader market. While the technology sector has recently experienced a slowdown, these two companies have seen their stock prices climb more than 10% year-to-date, offering investors a potential haven amid global economic uncertainty.
Consumer staples, encompassing essential goods like food, beverages, and household products, are often considered defensive investments. Their resilience stems from consistent consumer demand, even during economic downturns. This characteristic is particularly appealing as geopolitical tensions and a volatile economic outlook fuel investor anxiety.
Archer-Daniels-Midland, a global leader in agricultural processing, has demonstrated a strong rebound after hitting a low point in April 2023. The company transforms agricultural products into ingredients for both human and animal consumption, operating a network of 150 manufacturing facilities. Despite a year-over-year decrease in fourth-quarter revenue – $18.55 billion compared to $21.49 billion – and a decline in earnings per share from $1.17 to $0.94, ADM projects a significant improvement in 2026. Management forecasts earnings per share to range between $3.60 and $4.25 in 2026, a substantial increase from the $2.23 reported for 2025.
“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,” stated ADM CEO Juan Luciano. The company recently increased its dividend by 2%, marking its 53rd consecutive year of dividend growth, earning it the distinction of being a Dividend King. Currently, ADM’s dividend yield stands at 3.10%, and the stock is up 24% so far this year.
Hershey, renowned for its chocolate products, also boasts a diverse portfolio of snack foods, including Twizzlers, Dot’s Homestyle Pretzels, and Skinny Pop popcorn. The company is strategically integrating its Sweet, Salty, and Protein brands under a unified portfolio to leverage its brand recognition and streamline marketing efforts. Fourth-quarter revenue reached $3.09 billion, a 7% increase year-over-year. However, income decreased by 57% to $320 million, and adjusted earnings fell 36% to $1.71 per share, attributed to charges related to recent acquisitions – Sour Stripes in 2024 and LesserEvil in 2025.
Hershey anticipates a 4% to 5% increase in sales for 2026 and adjusted earnings per share between $8.20 and $8.52, representing a projected increase of 30% to 35% compared to the previous year. Investors have responded positively, driving Hershey’s stock up nearly 15% this year. The company’s dividend yield currently stands at 2.65%.
Both companies offer dividend yields significantly higher than the current S&P 500 yield of 1.15%, presenting an attractive option for income-seeking investors. The S&P 500 recently experienced a decline amid questions surrounding potential tariffs, while Nvidia saw gains ahead of its earnings report, according to Bloomberg.com.