Being a contrarian investor is not an easy task. It requires looking at stocks that Wall Street doesn't like and deciding if it's worth going against the grain and buying them. That's very difficult to do from an emotional standpoint. It becomes easier when out-of-favor stocks originate from a sector that has historically been viewed as a safe haven, such as the consumer staples sector.
If you're looking for a place to put cash to work, you might want to consider doubling up on consumer staples icons such as Coca-Cola (KO +0.64%), Procter & Gamble (PG 1.13%), and General Mills (GIS 2.34%).
Here's a quick look at each one of these industry leaders.
Image source: Getty Images.
Coca-Cola is performing well in a tough market
I bought, and then doubled up on, Coca-Cola's peer PepsiCo (PEP 0.06%). That's at least partly because PepsiCo's business spans across beverages, salty snacks, and packaged food products, and I'm a fan of diversification. That said, PepsiCo isn't doing nearly as well as Coca-Cola is right now, with Coca-Cola's organic sales up 6% in the third quarter of 2025 versus PepsiCo's less-than-inspiring 1.3%. For a conservative investor, Coca-Cola is likely to be the better choice.
NYSE: KO
Key Data Points
Coca-Cola is facing down the same pressures as every other consumer staples company right now. Stretched consumers are tightening their purse strings at the same time that a shift toward healthier foods is taking shape. And still, consumers are willing to pay a premium for the beverages Coca-Cola sells, showing the brand loyalty the company engenders among its loyal followers.
The company is a Dividend King, with more than six decades of annual dividend increases backing the well-above-market 2.9% yield. That yield is also notably above the 2.2% average for the broader consumer staples sector. The best part: Coca-Cola can stand toe-to-toe with any competitor with regard to its brand, distribution, marketing, and innovation strength. If you own it, you may want to consider doubling down on that investment today.
Procter & Gamble is holding its own in a tough market
Procter & Gamble isn't doing quite as well as Coca-Cola, but its organic sales in fiscal 2025 grew 2%, with the same level of growth in the fiscal first quarter of 2026. Basically, the company has produced steady results despite the belt-tightening that's going on with consumers.
Procter & Gamble's focus is on consumer staples products, such as toilet paper and toothpaste. (It doesn't make food.) However, it tends to operate at the high end of the market in the categories it serves.
The resilient organic sales growth is a notable sign of the company's effective management and the benefits offered by its premium products. The company's success shouldn't come as a shock, however, given that it, too, is a Dividend King. A company needs to have a good business plan that gets executed well in good times and bad to achieve a dividend record like that.
NYSE: PG
Key Data Points
What's exciting about Procter & Gamble today is its nearly 3% dividend yield. That's above average for the sector and the highest the yield has been in five years.
General Mills is struggling a bit
General Mills is focused entirely on packaged food products. It hasn't been doing particularly well of late, with organic sales down 2% through the first six months of fiscal 2026. That has investors worried about the business, with a material stock decline pushing the yield up to a very attractive 5.3%. I doubled up on my investment in this well-established food maker.
General Mills has been fairly transparent about its expectation that fiscal 2026 will be an investment year. In other words, the company is working to reposition its business to some degree with innovation and marketing that it hopes will spur future growth. This isn't at all unusual in the packaged-food space, and General Mills has successfully navigated similar difficult periods before.
NYSE: GIS
Key Data Points
Although the dividend hasn't been increased every year, it has generally trended higher for decades. Meanwhile, the dividend yield is near the highest levels in recent history. If you have a high risk tolerance, General Mills could be an attractive stock for you to consider today.
Three ways to go against the grain
Consumer staples are purchased regardless of the economic or market environment because they're essential life necessities. When the entire sector goes out of favor, as it is today, even the most conservative investors should take notice. Indeed, consumer staples stocks have trended sideways for a year while the S&P 500 index (^GSPC 1.14%) is up 15%. It could be time to dive in with both feet, even doubling up on your favorite stocks.
Sure, buying when others are selling requires taking a contrarian stance, but history suggests it will be worth it with consumer staples stocks. For risk-averse investors, Coca-Cola could be a solid choice today. Procter & Gamble could be attractive to more moderate risk-takers. And for those, like me, who don't mind a bit more uncertainty, General Mills could be the right pick.
