I S&P 500 (SNPINDEX: ^GSPC) it has recouped most of its losses from this year and is almost down year to date as of this writing. However, it is consistent with the Iran war scenario, and if the ceasefire does not hold or there is continued volatility in oil prices, it could go down again.
Investing successfully means weathering challenging times and changing markets. Part of that is having the best dividend stocks that protect your portfolio when things get tough. If you need some protection, I recommend Real Income (NYSE: O), Walmart (NASDAQ: WMT)again Coca-Cola (NYSE: KO).
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Realty Income is a real estate investment trust (REIT), a type of structure in which the company pays out 90% of its profits as dividends. That’s why many dividend investors have a few REITs in their portfolios. Realty Income is one of the largest REITs in the world, and is focused on real estate, although it has diversified into other industries.
Retail is an important part of its model, as its tenants are mainly supermarkets that can pay rent and withstand economic fluctuations. Its largest tenants are 7-Eleven, Dollar Generaland Walgreens, and grocery stores make up 11% of its rental base. Its standard lease is long-term, meaning the income is committed for several years, and it sports a 98.9% occupancy rate. That’s why Realty Income stock offers stability and protection during recessions and other tough times.
Realty Income grows in two main ways: acquiring more REITs and buying more properties. It had $121 billion in revenue last year, where it earned 5%, meaning it always has ways to ensure profit growth.
Realty Income has one advantage that most equity stocks can’t match: It pays a monthly dividend, and has done so for more than 55 years without missing a month. It paid a dividend of 5.1%.
Walmart’s more than 5,000 US discount stores reach 90% of the population, and it is constantly finding ways to open new stores, improve its systems, and innovate across its platforms. Recently, e-commerce has been a key growth driver, rising 24% year-over-year in the fourth fiscal quarter of 2026 (ended Jan. 31). Another limited way in e-commerce is to use its large store base as a fulfillment network.
in addition to its US operations, Walmart has a large global presence with nearly 11,000 stores and e-commerce, which provides variety and new opportunities.
Walmart’s strength and stability, along with its consistent growth, make it an excellent stock to own at any time, and even more so when the market is in turmoil. That’s why even though it’s not your typical growth stock, Walmart stock has led the S&P 500 over the past five years, up 190% versus 78% for the broader index.
Walmart is a Dividend King, or a company that has increased its dividend for at least 50 years, and has increased its dividend during the strongest and smallest of the last 53 years. That is a dividend that you can calculate whether there is a bull market or a bear market or in any type of economy.
Coca-Cola is the largest beverage company in the world, and has been in business for over a century. It has a well-established model for finding new products that add to business growth, and incorporating them into its global distribution system improves profitability.
However, its Coca-Cola-branded drinks carry a heavy burden on the company, and loyal fans continue to buy this cheap luxury in all kinds of situations. Sales rose 5% year over year in the fourth quarter of 2025.
Coca-Cola is also the king of the Dividend, and has the longest record of increasing its dividend at 64 years. That’s why investors feel they can count on Coca-Cola to provide them with income, even when the company’s payout ratio has exceeded 100%. That’s real commitment.
That’s why Coca-Cola stock definitely does well when the market is in turmoil. It’s up 12% this year while the S&P 500 is almost flat. Coca-Cola’s stock typically pays around 3%, but it’s only 2.7% at its latest price because the stock has performed so well.
If you’re looking for a perennial stock that can protect your portfolio when things turn sour, Coca-Cola is an excellent candidate.
Before buying stock in Realty Income, consider the following:
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Jennifer Saibil holds positions at Walmart. The Motley Fool has positions in and recommends Realty Income and Walmart. The Motley Fool has a policy of disclosure.
My 3 Favorite Stocks to Own When the Market Goes Bad was originally published by The Motley Fool.
