rewrite this content and keep HTML tags as is. This is content from rss feed and I don’t need their *Daily Debrief Newsletter*, their tags from bottom like this *Share this articleCategoriesTags*, Editorial Process section, phrases like *Featured image from Peakpx, chart from Tradingview.com*, SPECIAL OFFERS and similar sections – just remove such sections and save only article itself:
Key Points
Many portfolios aren’t being built to handle risk and uncertainty.
Owning too many tech stocks can backfire during an economic downturn.
Consumer goods stocks can help build out a well-balanced portfolio.
- 10 stocks we like better than Costco Wholesale ›
For some investors, 2026 has been a wake-up call that they have too many tech stocks lurking in their portfolio. Without sufficient diversification, there’s little to absorb the shocks of financial downturns.
One way to increase portfolio resilience is to own consumer goods stocks. These companies are known for being recession-resistant and better able to withstand prolonged inflation, economic slumps, and other market shocks. Three great companies fitting this mold are Costco Wholesale (NASDAQ: COST), Procter & Gamble (NYSE: PG), and PepsiCo (NASDAQ: PEP).
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
The subscription that keeps getting renewed
With its bulk deals and treasured Kirkland Signature brand, a Costco membership is something people don’t mind renewing, even in difficult times. In its fiscal Q2 2026 results, the retailer reported a worldwide renewal rate of 89.7%, while its U.S. and Canada membership renewal rate totaled 92.1%.
The company also just reported April net sales of $23.9 billion, a 13% increase from the same time a year ago. Sales can get boosted even further this year, as the retailer plans to add 28 new warehouses by year’s end.
The dividend payout is on the smaller side, yielding 0.5%, but adding that to the potential for stock price appreciation boosts the total return. Over the last five years, Costco shares have climbed 160% compared to the S&P 500‘s 77% return.
Medicine cabinet essentials
Most people’s medicine cabinets are filled with Procter & Gamble products. It’s the maker of Gillette razors, Old Spice deodorant, Scope mouthwash, Crest toothpaste, Vicks cold and flu medicine, and much more. Those are the kinds of products consumers typically keep buying, no matter what’s happening in the economy.
The company recently reported strong results from first-quarter earnings, beating on both the top and bottom lines. Revenue of $22.3 billion exceeded expectations of $22.1 billion, and adjusted earnings per share (EPS) of $1.99 was better than the $1.90 expected.
The stock price may not offer as much appreciation as Costco’s, but Procter & Gamble makes up for it by being a Dividend King. It’s not only reached the required Dividend King status of paying out dividends for 50 consecutive years, but has surpassed it, boosting its dividend payouts for 69 years in a row. That payout currently yields a respectable 2.9%.
All the beverages and snacks
Instead of products that fill medicine cabinets, PepsiCo’s product portfolio ends up in fridges and cabinets across the globe. Aside from Pepsi, its brands include Propel fitness water, Gatorade, Quaker oatmeal, Pure Leaf tea, Muscle Milk, Tostitos chips and salsa, and more.
PepsiCo is also coming off a strong first-quarter earnings report in 2026. Its revenue of $19.4 billion and EPS of $1.6 beat analyst forecasts of $18.9 billion and $1.5, respectively.
PepsiCo’s dividend offers the highest yield on this list, currently at 3.7%. Like Procter & Gamble, the beverage and snack maker is also a Dividend King, increasing its dividend for 54 consecutive years. The stock price has barely budged over the last five years, but with its favorable dividend payout, Pepsi stock offers portfolio protection.
Should you buy stock in Costco Wholesale right now?
Before you buy stock in Costco Wholesale, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Costco Wholesale wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 11, 2026.
Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
