Market Uncertainty Encourages Investment in Recession-Resistant Stocks

April has proven to be a tumultuous month for investors, with the benchmark S&P 500 index down approximately 9% year to date due to uncertainties surrounding the Trump administration’s trade policy.

In turbulent times like these, shifting focus to stable, recession-resistant stocks can be wise. This article examines why Philip Morris International (NYSE: PM) and Alpine Income Property Trust (NYSE: PINE) might be fruitful long-term investments.

Where should you invest $1,000 today? Our analyst team has identified their choice for the 10 best stocks to buy now. Learn More »

Overview of Philip Morris International

Nicotine’s addictive nature keeps the demand for cigarettes and other tobacco products consistent, regardless of economic conditions. Nonetheless, industry strength faces challenges from health regulations. Philip Morris International has strategized around this by diversifying its geographical presence and shifting towards safer, reduced-risk tobacco products.

In contrast to its former partner Altria Group (with whom it separated in 2008), Philip Morris primarily sidesteps the U.S. market to capitalize on global revenue opportunities across Europe, Asia, and Latin America.

The company has also shifted focus from conventional cigarettes to less harmful products such as Iqos, which utilizes heating instead of burning to minimize harmful chemical emissions while preserving flavor.

Additionally, Philip Morris is a significant player in the oral tobacco market, particularly with its Zyn nicotine pouches, which have garnered immense demand, leading to shortages within the U.S. in 2024.

While Philip Morris is a mature enterprise and may not promise rapid revenue growth, its robust business framework enables it to deliver consistent profits, illustrated by a dividend that has seen annual increases since 2008.

Introducing Alpine Income Property Trust

For dividend enthusiasts, Alpine Income stands out. As a real estate investment trust (REIT), the company avoids taxation by redistributing the majority of its profits to shareholders. Its smaller size presents a compelling alternative to larger, more established players in the REIT space.

REITs have been part of the investment landscape since the 1960s, with many evolving into major enterprises over the decades. However, as a REIT matures, it often faces the necessity of acquiring additional property to sustain growth, which can risk the quality of its investments.

Image source: Getty Images.

With a market capitalization around $246 million, Alpine Income is well-positioned for significant long-term growth as it expands its operations and secures advantageous deals.

Among its top clients are well-known retailers such as Lowe’s and Dick’s Sporting Goods. The company operates 134 properties across the United States, boasting a 98% occupancy rate with an average lease length of 8.7 years, ensuring a reliable source of income.

Alpine Income features a dividend yield of 7.4%, positioning it favorably against other net lease REITs like Realty Income and W.P. Carey, which deliver yields of 5.8% and 6.2%, respectively. This stock appears promising for long-term investors.

Market Uncertainties Ahead

Financial markets typically react negatively to uncertainty as it complicates future investment planning. The unpredictable trade policies of the Trump administration may intensify market volatility in the near term, coupled with the rising likelihood of a U.S. recession expected in 2025, adding layers of complexity to the economic climate.

Despite these headwinds, such chaos can present opportunities. Investors should view market downturns as moments to acquire quality stocks at a discount. Both Philip Morris International and Alpine Income Property Trust are promising candidates for their defensive business practices and substantial dividends.

Should You Invest $1,000 in Philip Morris International Now?

Before purchasing Stock in Philip Morris International, consider the following:

The Motley Fool Stock Advisor analyst team recently highlighted what they consider the 10 best stocks for investment today—Philip Morris International was not included. The 10 stocks in this select group have potential to yield substantial returns in the years ahead.

Reflect on the time when Netflix was featured on December 17, 2004—if you had invested $1,000 at that time, your investment would now be worth $495,226!* Or consider Nvidia on April 15, 2005, where a $1,000 investment would have grown to $679,900!*

It’s noteworthy that Stock Advisor has a total average return of 796%—significantly outperforming 155% for the S&P 500. Stay updated on the latest top 10 list by joining Stock Advisor.

View the 10 stocks »

*Stock Advisor returns as of April 14, 2025

Will Ebiefung holds positions in Realty Income. The Motley Fool has investments in and recommends Realty Income. Furthermore, the Motley Fool endorses Lowe’s Companies and Philip Morris International. For more information, refer to the Motley Fool’s disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.