Consumer Staples Stocks for Defensive Income as Inflation Eases

With US inflation easing to 3.5% and gas prices pulling headline figures lower, investors are again weighing how persistent high living costs might affect essential spending. Consumer staples stocks sit at the center of that debate, as households still need food and household goods even when budgets feel tight. This article looks at 3 stocks from a Consumer Staples Stocks screener that appear closely exposed to the latest inflation news. Each company may react differently to easing price pressures and stretched consumers, and the sections ahead explain why some investors might see that as an opportunity or a reason for caution.

Del Monte (DMC)

Overview: Del Monte Corporation is a global food company that grows, processes, and sells fresh and prepared fruits and vegetables, juices, snacks, and value-added fresh-cut products, with brands like Del Monte, Mann, Pinkglow, Honeyglow, and others on shelves across North America, Europe, the Middle East, Asia, and beyond.

Operations: Del Monte generates most of its revenue from Fresh and Value-Added Products at US$2.56b and Bananas at US$1.48b, with smaller contributions from Other Products and Services at US$214.1m and segment adjustments of US$11.6m.

Market Cap: US$1.40b

Del Monte sits at the intersection of essential food demand and easing inflation, with a large fresh and value-added fruit business that is closely tied to consumer staples spending. The company is leaning into premium pineapple varieties and higher value fresh-cut products, while also branching into upcycled fruit extracts for beverage makers, which could deepen ties to manufacturers as input costs become less volatile. At the same time, investors need to weigh thin net margins, recent one-off losses, climate and logistics pressures, and higher freight costs that can quickly eat into profits. The recent rebranding, expanded credit facility, and the current earnings outlook together create a more complex picture than the recent share price performance alone might suggest.

Del Monte’s push into premium fruit and upcycled extracts could be masking a far more complex story around thin margins and recent one off hits, so it is worth scanning the 1 key reward and 3 important warning signs

Colgate-Palmolive (CL)

Overview: Colgate-Palmolive is a global consumer products company best known for its toothpaste, soaps, household cleaners, and pet foods, selling daily-use brands such as Colgate, Palmolive, Softsoap, Ajax, Fabuloso, and Hill’s Science Diet through retailers, eCommerce channels, veterinarians, and health professionals around the world.

Operations: Colgate-Palmolive generates most of its revenue from Oral, Personal and Home Care in Latin America at US$4.95b and North America at US$4.03b, with further contributions from Asia Pacific at US$2.88b, Pet Nutrition at US$4.69b, and segment adjustments of US$4.25b.

Market Cap: US$75.27b

Colgate-Palmolive gives investors exposure to everyday essentials at a time when US inflation has eased to 3.5% but living costs still feel high, so spending on oral care, cleaning products, and pet nutrition may hold up better than discretionary categories. The company is balancing premium products and higher pricing with pressure on margins, a recent US$1.1b one off loss, and a high debt load that inflates projected returns on equity. Analysts report expectations for earnings and revenue, some assessments suggest the stock is trading below certain estimated fair value measures, and Hill’s Pet Nutrition adds a distinct product and pricing story. The key consideration is how this mix of resilience, cost pressure, and debt shapes Colgate-Palmolive’s risk reward profile for long term holders.

Colgate-Palmolive’s mix of everyday essentials, premium pricing, and that US$1.1b one off loss hints at a story the headline numbers alone do not capture. It is therefore worth reading the 3 key rewards and 3 important warning signs

Kimberly-Clark (KMB)

Overview: Kimberly-Clark is a global personal care company that makes everyday essentials like Huggies diapers, Kotex feminine care, Depend adult incontinence products, and Kleenex tissues for households and professional customers across North America and international markets.

Operations: Kimberly-Clark generates most of its revenue in North America at US$10.74b, with the remainder from International Personal Care at US$5.82b.

Market Cap: US$36.18b

Kimberly-Clark provides exposure to essential hygiene categories that tend to be more resilient when inflation cools to 3.5% but the cost of living still feels high, as shoppers keep buying tissues, diapers, and incontinence products even if they trade around on brands or pack sizes. The stock currently appears cheaper than some peers on a P/E basis, and it offers a 4.73% dividend yield, supported by a large productivity program and efforts to improve product mix. The new Arbex joint venture with Suzano and potential Kenvue-related moves indicate a business that is still reshaping its portfolio. The trade off is meaningful leverage, questions around dividend coverage, and intense private label competition, which together make Kimberly-Clark a stock where the details matter.

Kimberly-Clark’s 4.73% dividend yield and ongoing productivity push could be masking a deeper story about earnings power and balance sheet pressure, so it is worth scanning the 2 key rewards and 2 important warning signs (1 is major!)

The three consumer staples stocks covered here are just a starting point, as the full Consumer Staples Stocks screener surfaces 34 more companies with similarly compelling stories around essential goods, balance sheet strength, and dividends. Use Simply Wall St to identify, filter, and analyze the specific catalysts and narratives that matter to you so you can focus on the highest conviction ideas in this corner of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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