You can’t time the market, but you can bank on a good dividend. Especially when stocks are swinging in volatile times, reliable income is a rare anchor.
Right now, I like the following three dividend stocks because they’re steady, well-positioned, and proven in every economic weather pattern you can name. That’s a trifecta you can rarely go wrong with, whether you’re investing $100, $1,000, $10,000, or $50,000.
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Not many brands are as well-known globally as Coca-Cola(NYSE: KO). Its flagship soda is one of the most recognized products on the planet, and the company’s portfolio stretches far beyond colas (think Dasani water, Minute Maid juice, and Topo Chico sparkling water).
Although Coca-Cola’s stock has outperformed the market through Aug. 13 (compared to the S&P 500), the appeal of its stock has long been its dividend. Indeed, Coca-Cola has raised its dividend for 63 consecutive years, making it a Dividend King. Today’s yield sits just below 3%, with a payout ratio that leaves room for steady increases. That means investors get a dependable income stream that’s not tied to market swings.
The headwinds? Currency fluctuations can bite into earnings, and global health trends could pressure sugary beverage sales over time. But Coca-Cola’s ability to adapt, whether through zero-sugar drinks or premium hydration brands, keeps it well-anchored in the “reliable” category.
When Realty Income(NYSE: O) calls itself “The Monthly Dividend Company,” it’s not bluffing. This real estate investment trust (REIT) has paid dividends for 661 consecutive months, or roughly 55 years.
That kind of track record comes from a simple but effective business model: Long-term, net lease agreements with single tenants in stable, non-discretionary industries. Think Lowes, 7-Eleven, and Chipotle, among others. Today, Realty Income owns more than 15,600 commercial properties leased to over 1,600 clients across 91 separate industries, achieving a portfolio occupancy of 98.5%.
Even when the economy cools, those tenants still pay rent, and Realty Income’s contract structure shifts maintenance and insurance costs to them. That keeps cash flow predictable, which in turn supports the monthly dividend. The yield, currently around 5.6%, ranks it as a top dividend REIT.
Elevated interest rates have weighed on the share price, but that’s more of a short-term sentiment hit than a problem with its fundamentals. As borrowing costs normalize, Realty Income stands to regain some ground, while delivering monthly payments while you wait.
Like Coca-Cola, Johnson & Johnson(NYSE: JNJ) is a Dividend King, a company that has increased its annual dividend for at least 50 consecutive years. Johnson & Johnson has done so for 63 years, putting it firmly within this elite group.
Johnson & Johnson is a household name, and you’ve probably purchased or used one of its products at some point in your life. Its operations cover two main areas: Pharmaceuticals and medical devices. The pharmaceutical segment brings in the largest share of revenue, anchored by blockbuster drugs, while medical devices benefit from steady demand for surgical and orthopedic products.
One of Johnson & Johnson’s strengths is that, even in downturns, people don’t usually postpone essential treatments. True, there are litigation risks (around talc and opioids), so the company isn’t completely shielded from volatility. But with a strong balance sheet and a payout ratio just over 50%, the dividend looks well supported and has room to grow from here.
It currently offers a dividend yield of about 3%. That’s not flashy, but it’s steady enough to keep paying you while you hold the stock for the long haul.
Dividends aren’t about income as much as they are about discipline. Coca-Cola, Realty Income, and Johnson & Johnson have spent decades proving they can reward shareholders through every cycle. That doesn’t mean share prices won’t fluctuate — they will — but these dividends don’t flinch easily. That’s the kind of steady footing that makes it a little easier to hang on when the market feels anything but steady.
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Steven Porrello has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Realty Income. The Motley Fool recommends Johnson & Johnson and Lowe’s Companies and recommends the following options: short September 2025 $60 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
