Key Takeaways COST grew FY25 EPS and sales estimates by 11.6% and 8.1%, supported by strong brand loyalty and execution.Kirkland Signature outpaced overall sales, with penetration up 50 bps, boosting brand-driven resilience.COST shares rallied 18.8% in a year, outpacing rivals despite trading at a premium P/E of 48.15.At a time when volatility continues to haunt, Costco Wholesale Corporation (COST) remains a poster child for defensive investing. The company's unique membership-based model and pricing discip ...

Core Insights - Investors in 2025 are facing a challenging market characterized by persistent inflation and global uncertainty, leading to a shift towards high-quality, stable companies rather than high-risk growth stocks [1][2] Company Summaries Coca-Cola - Coca-Cola is recognized for its predictability and financial strength, boasting a dividend yield of 2.96% and an annual dividend of $2.04, with a 64-year track record of dividend increases [4][5] - The company recently announced a 5.2% increase in its dividend, marking its 63rd consecutive year of growth, supported by strong brand loyalty and pricing power [5][6] - Coca-Cola's strong organic revenue growth of 9% was attributed to successful price adjustments, demonstrating its ability to shield profits from inflation [6][7] PepsiCo - PepsiCo offers a diversified business model across beverages and convenient foods, with a dividend yield of 4.41% and an annual dividend of $5.69, maintaining a 54-year dividend increase track record [9][11] - The Frito-Lay division contributes significantly to PepsiCo's cash flow, with a recent 6% organic revenue growth, enhancing the overall stability of the company [10][11] - PepsiCo announced its 53rd consecutive dividend increase of 5%, reflecting management's confidence in its dual-engine business model [11][12] Realty Income - Realty Income focuses on providing a reliable monthly dividend, with a dividend yield of 5.63% and an annual dividend of $3.22, having made over 660 consecutive monthly payments [13][14] - The company operates as a Real Estate Investment Trust (REIT) with long-term, triple-net leases, insulating it from inflationary pressures [14][15] - Realty Income's focus on investment-grade tenants in defensive industries ensures a high occupancy rate above 98%, contributing to its financial stability [15][16] Investment Strategy - The companies highlighted demonstrate that stability and predictability are key attributes for long-term investment success, especially in uncertain market conditions [17][18]

Group 1 - The stock market showed signs of recovery in April, regaining some losses from previous months, which is seen as a positive development [1] - Five stocks and ETFs are being considered for purchase in May, focusing on valuation and defensive strategies [2] - Berkshire Hathaway (BRK.A 1.43%, BRK.B 1.28%) has been outperforming the S&P 500 index, with the company raising over $300 billion in cash by divesting from stocks due to market concerns [2]