S&P 500 (SNP index: ^GSPC) It has recouped most of its losses this year and as of this writing, it has had a nearly steady year to date. However, this is related to what is happening with the war in Iran and could fall again if the ceasefire does not hold or oil prices continue to be volatile.
Successful investing means surviving challenging times and changing markets. Part of the equation is owning excellent dividend stocks that protect your portfolio when things go bad. If you need some security, I recommend Realty Income(NYSE: O), Walmart(NASDAQ: WMT) and Coca-Cola (NYSE: KO).
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Realty Income is a real estate investment trust (REIT), a type of structure where the company pays out 90% of its earnings as dividends. This is why many dividend investors have some REITs in their portfolios. Realty Income, one of the world’s largest REITs, focuses on essential retail but has diversified into other industries.
Essential retailing is an important part of its model, as its tenants are primarily large chain stores that can reliably pay their rent and withstand changing economies. Its top tenants by size are 7-Eleven, Dollar General and Walgreens, and grocers make up 11% of its tenant base. Its typical lease agreement is long-term, meaning committed revenues for several years, and it has a 98.9% occupancy rate.
That’s why Realty Income stock provides flexibility and protection during recessions and other tough times.
Realty Income grows in two main ways: acquiring other REITs and buying more properties. It had $121 billion of source volume last year, of which it acquired 5%, meaning it has a ways to go to ensure consistent dividend growth.
Realty Income has one distinct advantage that most dividend stocks can’t match: It pays monthly dividends, and it’s been doing so without missing a month for more than 55 years. It has increased the dividend quarterly for the last 114 quarters and has a dividend yield of 5.1%.
Walmart’s more than 5,000 U.S. discount stores reach 90% of the population, and it’s constantly looking for ways to open new stores, improve its systems, and innovate on its platforms. Recently, e-commerce has been a significant growth driver, growing 24% year over year in the fiscal fourth quarter of 2026 (ending Jan. 31). One way to gain an edge in e-commerce is to use your huge store base as a fulfillment network
In addition to its US operations, Walmart has a huge global presence with approximately 11,000 stores and e-commerce, providing diversification and new opportunities.
Walmart’s strength and stability, as well as its steady growth, make it an excellent anchor stock to buy at any time, and even more so when there is market chaos. That’s why even though it’s not your typical young growth stock, Walmart stock has outperformed the S&P 500 over the past five years, up 190% versus 78% for the broader index.
walmart is one dividend kingOr a company that has raised its dividend for at least 50 years, and has raised its dividend through tough times for the last 53 years. This is a dividend you can count on, no matter whether it’s a bull or bear market or any type of economy.
Coca-Cola is the world’s largest beverage company, and it has been in operation for over a century. It has a well-established model of acquiring new brands that add growth to the business, and incorporating them into its global distribution system improves profitability.
However, its eponymous Coca-Cola-branded beverages carry most of the weight for the company, and loyal fans continue to purchase these affordable luxury items in all kinds of circumstances. Sales in the fourth quarter of 2025 increased 5% year over year.
Coca-Cola is also a dividend king, and has the longest history of raising its dividend at 64 years. That’s why investors feel they can count on Coca-Cola to provide passive income, even when the company’s payout ratio exceeds 100%. This is real commitment.
That’s why Coca-Cola stock inevitably performs well when the markets are in turbulent times. It’s up 12% this year while the S&P 500 is nearly flat. Coca-Cola’s dividend is usually around 3%, but at its recent price it is only 2.7% as the stock has performed very well.
If you’re looking for a stable stock that can cushion your portfolio should the worst happen, Coca-Cola is an excellent candidate.
Consider this before buying stock in Realty Income:
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jennifer sabil There are positions at Walmart. The Motley Fool has positions in Realty Income and Walmart and recommends them. The Motley Fool has one Disclosure Policy.
