PepsiCo (NASDAQ: PEP), The J.M. Smucker Company (NYSE: SJM), and The Clorox Company (NYSE: CLX) are the three consumer stocks Will Healy selected in The Motley Fool article published October 6, 2026. Their familiar consumer businesses and dividend histories are the basis for a long-term thesis—not proof that any will outperform or deliver strong returns over the next 20 years. Recent company results are mixed, and each stock still calls for scrutiny of its operating performance, execution, and valuation.
What makes these stocks candidates for a long holding period?
Healy’s case rests on consumer brands, recurring demand for everyday products, and dividends. Those characteristics can make a company worth examining as a long-term holding, but they do not guarantee resilient sales, growing earnings, or a rising share price. A durable business can still be a poor investment if its results weaken or its shares are bought at an unattractive price.
The evidence available here is a snapshot, not a 20-year forecast. PepsiCo reported growth in its first quarter of fiscal 2026; Clorox’s fiscal 2026 results declined, with the company citing an unusual inventory comparison; and the specific later-quarter Smucker figures discussed in the Motley Fool article have not been independently validated against company results.
How the three companies compare
| Company | Business thesis in the Motley Fool article | Recent company evidence | Dividend evidence in the available sources |
|---|---|---|---|
| PepsiCo (NASDAQ: PEP) | A broad food-and-beverage portfolio, adaptation to consumer preferences, and dividends. | In Q1 FY2026, net revenue grew 8.5%, organic revenue grew 2.6%, and core EPS grew 9% year over year. These are different measures; organic revenue and core EPS are non-GAAP measures. | The company said its announced 4% dividend increase would be its 54th consecutive annual increase. |
| The J.M. Smucker Company (NYSE: SJM) | A portfolio of consumer brands, with coffee as a central part of the article’s thesis. | The company’s investor-relations page listed FY2026 Q4 results and a FY2027 outlook release dated June 9, 2026. The article’s later-quarter figures are not independently verified here. | The sources used here do not establish a dividend figure or history for comparison. |
| The Clorox Company (NYSE: CLX) | A strong-brand and dividend thesis despite the company’s distressed position in the article’s framing. | In FY2026, net sales fell 5% to $6.72 billion and adjusted EPS fell 28% to $5.53. Clorox estimated that retailer inventory drawdowns reduced sales growth by about 7.5 percentage points. | The article advances a dividend thesis, but the available company results do not establish a dividend figure for comparison. |
PepsiCo: growth across different revenue measures
PepsiCo’s official Q1 FY2026 results, released April 16, 2026, showed 8.5% growth in reported net revenue, 2.6% growth in organic revenue, and 9% growth in core EPS year over year. The reported revenue figure is not interchangeable with organic growth: PepsiCo said foreign exchange and acquisitions and divestitures contributed to reported revenue growth. Core EPS is a company-defined non-GAAP measure, not the same as GAAP earnings per share.
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The company affirmed its FY2026 guidance and said the announced 4% dividend increase would mark its 54th consecutive annual increase. That record is evidence of a long history of increases, not a promise of future increases. CEO Ramon Laguarta described the quarter as featuring “an acceleration in both net revenue and organic revenue growth – with a notable improvement in convenient foods organic volume.” That is management’s characterization of the results, not an independent assessment.
For a long-term investor, the useful question is whether growth in underlying demand and earnings can continue, rather than whether one quarter’s reported revenue growth looks strong. The difference between reported and organic revenue also makes it important to keep currency and acquisition effects in view when assessing future results.
J.M. Smucker: a brand-and-coffee thesis with a verification gap
The Motley Fool article emphasizes Smucker’s brands and coffee business, and reports a fiscal first-quarter revenue increase and a return to profitability. Those later-quarter figures have not been independently validated against a company release here, so they should be treated as the article’s account rather than as confirmed company figures.
Smucker’s investor-relations page listed its FY2026 Q4 results and FY2027 outlook release dated June 9, 2026. Before relying on the article’s quarterly claims, investors should compare them with the company’s own filings or releases, paying attention to the period covered and how the company defines any adjusted measures. A portfolio and coffee-brand thesis is not enough on its own: a long-horizon case needs evidence that sales and profitability can hold up over time.
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Clorox: a weak year and an inventory-related comparison
Clorox’s official FY2026 results showed net sales of $6.72 billion, down 5%, and adjusted EPS of $5.53, down 28%. The company said retailers had placed advance orders ahead of an ERP transition in FY2025 and later drew down inventory. Clorox estimated that this inventory effect reduced FY2026 sales growth by about 7.5 percentage points.
That explanation provides context for the comparison but does not erase the reported declines. Investors weighing the long-term brand-and-dividend case should look for evidence that sales and earnings stabilize and that the company executes through the transition. The source article calls Clorox distressed; that is its framing, not a guarantee that a recovery will follow.
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What to assess before holding any of them for decades
- Operating performance: Look beyond brand familiarity. Track whether revenue and earnings trends persist, and distinguish reported results from organic, adjusted, or core measures.
- Company-specific execution: For PepsiCo, separate underlying revenue growth from currency and acquisition effects. For Smucker, verify the reported later-quarter performance using company disclosures. For Clorox, watch whether results improve after the inventory drawdown and ERP-related comparison.
- Valuation at the time of purchase: No dated share-price, P/E, or dividend-yield comparison is established here. A valuation claim can become stale quickly, so use a current quote and check the earnings measure and period behind any ratio.
- Portfolio fit and risk: A 20-year horizon does not remove business, competition, consumer-preference, or execution risk. Consider how each position fits with the rest of a diversified portfolio instead of treating the article’s three picks as a complete investment plan.
The Motley Fool article also discloses that author Will Healy has a position in Clorox and that The Motley Fool has positions in and recommends J.M. Smucker. Readers can take that disclosure into account when weighing the article’s opinions.
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