When the market gets choppy, consumer staples stocks tend to perform well. Whether the economy’s booming or slowing, these companies continue to deliver the basics like food, household goods, and personal care products. In fact, the dependable demand for their products and services makes them a favourite for investors seeking stability and income.
For investors with a Foolish investing approach, a $10,000 allocation in this sector could yield consistent dividends and gradual appreciation, supported by stable earnings and strong cash flow, even during turbulent times. In this article, let’s look at two of the best Canadian consumer staples stocks that can offer steady returns and income potential through 2030.
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North West Company stock
So, let’s start with North West Company (TSX:NWC), a top Canadian stock that’s quietly dependable yet built for the long haul. This Winnipeg-headquartered company mainly focuses on retailing essential goods, including food and home supplies, to remote communities across Canada, Alaska, the Caribbean, and the South Pacific.
After rallying by 36% over the last year, NWC stock currently trades at $53.72 per share, with a market cap of $2.6 billion and offers a 3% annualized dividend yield, paid every quarter.
In its latest quarter ended in January, North West posted $674.9 million in revenue, marking a 5% YoY (year-over-year) increase with the help of steady demand and improved performance in its Canadian operations. During the quarter, the company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) also rose over 10% from a year ago due to margin expansion and better cost management. As a result, its quarterly net profit jumped 12% YoY.
To strengthen its long-term growth outlook, North West continues to make investments in logistics, infrastructure upgrades, and community-focused services. That’s the kind of strategy long-term income investors could feel good about through 2030.
Premium Brands stock
That brings us to Premium Brands Holdings (TSX:PBH), another top dependable pick in the Canadian consumer staples sector. This Richmond-based company specializes in specialty food manufacturing and distribution, serving over 22,000 customers across Canada and the U.S. markets. Currently, PBH stock trades at $75.95 per share with a market cap of $3.4 billion and a healthy 4.5% annualized dividend yield.
In the December 2024 quarter, Premium Brands posted a 5.4% YoY increase in its total revenue to a record $1.64 billion due largely to strong momentum in its U.S. protein and bakery businesses. Similarly, its adjusted EBITDA climbed by 8.4% from a year ago to $148.7 million as better production efficiency and sales volume helped offset higher promotional and overhead costs.
But what really makes this stock attractive through 2030 is the company’s forward-looking approach. Notably, Premium Brands recently completed several key acquisitions, expanded production facilities across North America, and set bold targets of hitting $10 billion in sales and $1 billion in EBITDA by 2027. With its steady dividend and a strong growth pipeline, Premium Brands shows the kind of long-term consistency income-focused investors look for.
