Consumer staples stocks generate reliable income, hold up during downturns, and tend to raise dividends even when growth slows. The iShares Global Consumer Staples ETF (NYSEARCA:KXI) packages that defensive logic into a single fund, holding 100+ global consumer staples companies with a 0.39% expense ratio and a 2.27% dividend yield. The fund has returned 13.57% year-to-date and 18.07% over the past year as of February 24, 2026.
With the University of Michigan Consumer Sentiment index at 56.4, firmly in recessionary territory, and the 10-year Treasury yield at 4.03%, the defensive case for staples is clear. As we noted in our Daily Profit newsletter today, macro uncertainty is reshaping how investors approach equity exposure. Five KXI holdings stand out on revenue growth, EPS trajectory, dividend strength, forward guidance, and business transformation. Ranked fifth to first:
#5: Procter & Gamble
Procter & Gamble (NYSE:PG) earns its place through dividend longevity: 68+ consecutive years of increases, making it one of the longest-running Dividend Kings. The current quarterly payout is $1.0568 per share, a 5.0% increase from 2024. The stock trades at a forward P/E of 22x with an analyst consensus target of $168.
The headwinds are real. In Q2 FY2026, Procter & Gamble posted revenue of $22.20 billion, missing the $22.95 billion estimate, with organic sales flat and operating income down 6.5% year-over-year. The Baby, Feminine, and Family Care segment saw organic sales fall 4%. FY2026 guidance calls for EPS growth of just 1-6%. The brand portfolio and dividend history keep it on the list; near-term execution keeps it at fifth.
#4: Costco Wholesale
Costco Wholesale (NASDAQ:COST) runs one of retail’s most durable business models. In Q1 FY2026, it posted EPS of $4.50, beating the $4.36 estimate, with net sales up 8.2% and digitally-enabled sales surging 20.5%. Membership income grew 14.0% and the worldwide renewal rate held at 89.7%. Quarterly earnings growth is running at 11.4% year-over-year.
The valuation is the honest caveat: Costco trades at a trailing P/E of 53x and a forward P/E of 46x. Revenue slightly missed at $67.31 billion versus the $68.51 billion consensus. The dividend yield is modest at 0.51%, but the membership model’s predictability and consistent earnings growth justify the premium.
#3: Coca-Cola
Coca-Cola (NYSE:KO) is the income anchor many retirees already know. With 63 consecutive years of dividend increases and $8.78 billion paid in dividends during 2025, shareholder commitment is unambiguous. The Q1 2026 quarterly dividend was raised to $0.53 per share, a 3.9% increase year-over-year.
Q4 2025 revenue of $11.82 billion missed the $12.39 billion estimate, but comparable EPS of $0.58 met expectations. Organic revenue grew 5% in Q4, and Coca-Cola Zero Sugar delivered 13% volume growth. The 2026 outlook calls for 4-5% organic revenue growth, 7-8% comparable EPS growth, and free cash flow targeted at $12.2 billion.
#2: Walmart
Walmart (NYSE:WMT | WMT Price Prediction) is KXI’s largest holding at 9.94% of the portfolio, and its Q4 FY2026 results justify that weight. Revenue reached $190.66 billion, up 5.6% year-over-year, with adjusted EPS of $0.74 beating the $0.70 consensus. Global eCommerce grew 24% and now represents 23% of total net sales, a record. Operating income rose 10.8% to $8.71 billion.
Walmart authorized a new $30 billion share buyback and raised its annual dividend to $0.99 per share for FY2027. FY2027 guidance calls for net sales growth of 3.5-4.5% and adjusted EPS of $2.75-$2.85. The stock has gained 36.61% over the past year.
#1: Philip Morris International
Philip Morris International (NYSE:PM) tops this list on earnings growth, margin expansion, and a credible business transformation. Full-year 2025 adjusted EPS grew 14.8% to $7.54, operating income margin expanded 1.6 percentage points to 40.4%, and the smoke-free business generated nearly $17 billion in revenue, representing 41.5% of total net revenues, growing 15% for the year. ZYN nicotine pouches reached 794 million cans in the U.S., up 37%, while IQOS holds 76% global heat-not-burn market share. The quarterly dividend stands at $1.47 per share, annualizing to $5.88.
Q4 2025 missed on both lines: revenue of $10.36 billion fell short of the $10.75 billion estimate and adjusted EPS of $1.70 missed the $1.75 consensus. But 2026 guidance of adjusted EPS of $8.38-$8.53, representing 11-13% growth, and a three-year CAGR target of 9-11% adjusted EPS growth through 2028 make the full-year trajectory compelling. Philip Morris has gained 23.89% over the past year and trades at a forward P/E of 19x.
KXI: A Look at Its Defensive Holdings
These five holdings illustrate the defensive characteristics that define KXI’s portfolio — income generation, dividend longevity, and resilience under economic pressure. From Philip Morris’s smoke-free transformation and 40%+ operating margins, to Walmart’s eCommerce momentum and $30 billion buyback, to Coca-Cola’s 63-year dividend streak, these businesses are built to generate income and withstand economic pressure. KXI holds these businesses within a single fund structure, charging a 0.39% expense ratio, with consumer sentiment at recessionary levels and inflation running at 2.16% year-over-year providing macro context for the defensive staples thesis.
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