Companies that provide consumer products and services, particularly food, beverage, and other consumables, are suitable for long-term investors. Five TSX consumer staple stocks are defensive holdings because of demand stability regardless of the economic environment.
Top performer
Maple Leaf Foods (TSX:MFI) outperforms thus far in 2025. At $24.92 per share, current investors enjoy a +23.7% year-to-date gain on top of the 3.85% dividend yield. The $3.1 billion protein company matched its continuing journey to “raise the good in food” with impressive financial performance, a dividend hike, and a transformation strategy in 2025.
In 2024, sales increased 1.1% year over year to $4.9 billion, while net earnings reached $96.6 million compared to the $125 net loss in 2023. Notably, free cash flow (FCF) soared 332.9% to $385.3 million from a year ago. The board approved a 9% dividend increase. Maple Leaf will spin off its world-leading pork business to unlock growth potential.
Strong growth platform
Canadian business conglomerate Empire Company Limited (TSX:EMP.A) owns the supermarket chain Sobeys. The $10.8 billion grocer and retailer also has a 41.5% ownership stake in Crombie, a $2.6 billion real estate investment trust (REIT).
Investments in renovation, conversions, new stores, and tech innovation continue to bear fruits. In the third quarter (Q3) of fiscal 2025 (three months ending February 1, 2025), sales and net earnings increased 3% and 9% to $7.73 billion and $146.1 million versus Q3 fiscal 2024.
Empire’s president and chief executive officer (CEO), Michael Medline, credits the strong quarterly results to improving same-store sales and discipline in managing margins. At $46.21 (+5.78% year to date), the dividend offer is a decent 1.73%.
Healthy business
High Liner Foods (TSX:HLF) is a processor of value-added frozen seafood and markets it to North American food retailers and food service distributors. This 189-year-old, $488.8 million company boasts a broad portfolio of recognized, trusted brands such as High Liner, Mirabel, and Catch of the Day.
Despite lower sale volume in 2024 ($959.2 million), net income climbed 90% year over year to $60.2 million. Paul Jewer, president and CEO of High Liner, said, “We closed a year of volatile market conditions on a strong note, reinforcing both the stability of our business and the effectiveness of our strategy to drive profitable top-line recovery.” If you invest today ($16.53 per share), HLF pays a lucrative 4.11% dividend.
Captured markets
North West Company (TSX:NWC) trades at a slight discount (-5.62% year to date) but remains a solid passive-income provider (3.45% dividend yield) because of captured markets. The current share price is $46.36. You’d be investing in one of the longest-continuing retail enterprises in the world (since 1668).
This $2.2 billion grocery and retail company provides food, everyday products, and services. Its captured markets are the rural communities and urban neighbourhood markets in northern Canada, rural Alaska, the South Pacific, and the Caribbean.
Recession-resistant
Alimentation Couche-Tard (TSX:ATD) is a steal at $70.37 per share (-11.73% year to date). This $66.7 billion convenience store chain operator has delivered consistent profitability with a continued focus on expansion and sustainability. The business model is recession-resistant, so you’re buying on weakness. You will receive steady dividend income (1.11% yield) while waiting for the rebound.
Capital protection
All five consumer stocks in focus deserve a place in an investment portfolio. They can add stability and provide capital protection.
