Dividend Stocks to Navigate Recent Market Turmoil
As the stock market reacts to President Trump’s trade tariff announcements, investors have noticed increased correlation in price movements among various sectors. This shift has prompted capital to rotate in and out of asset classes, revealing a divergence in market performance. Through this volatility, it has become essential to identify strong fundamentals that can shield and potentially enhance investment portfolios.
With changing preferences in investor behavior, a focus on dividend stocks can be particularly advantageous. Identifying stocks that others may find appealing in the near future could pave the way for significant market gains. Today, we spotlight several dividend stocks poised to weather the market’s current turbulence.
Investing in Stability: Realty Income
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Within the realm of real estate investment trusts (REITs), not all are alike. While some, particularly in residential and mall sectors, may show higher volatility amid economic uncertainty, Realty Income stands apart. This REIT specializes in leasing to defensive tenants, offering a more stable investment profile.
This stability translates to a significantly lower beta, indicating reduced volatility and risk, which is particularly beneficial in unpredictable market conditions. As a result, Realty Income can afford to pay dividends not quarterly, but monthly, providing investors with an additional liquidity advantage.
This monthly payout of $3.22 per share corresponds to an annualized dividend yield of up to 5.9%. Such consistent income can fortify investors’ capacities to capitalize on opportunities when market volatility settles.
Reflecting this confidence, approximately $4.7 million of institutional capital has flowed into Realty Income stock in just the first week of April 2025. Wall Street analysts maintain a price target of $62.4 per share for Realty Income, signaling an upside potential of 13.3% from current levels—an impressive prospect in the REIT sector.
Defensive Plays in Tobacco: Altria and Philip Morris
Cigarette consumption may have declined, but nicotine remains a resilient habit for many consumers. As such, two companies—Altria Group and Philip Morris International—continue to thrive within this established market.
Altria Group: Reliable Cash Flow and Yield
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Altria has witnessed predictable cash flows amid evolving consumption preferences, enabling it to sustain dividends securely. Presently, Altria offers shareholders $4.08 per share, corresponding to a promising 7.3% annualized dividend yield.
This steadfast position within the U.S. tobacco market provides Altria with a defensive advantage, helping it maintain brand loyalty even as traditional cigarette consumption wanes. Historical performance is commendable, having raised its dividend consistently for over 50 years, thus earning the designation of a Dividend King.
Philip Morris International: Resilient and Global
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Philip Morris International offers an enticing $5.4 per share in dividends. While its yield doesn’t surpass Altria’s, it effectively counters the current U.S. inflation rate of 3.6%.
Moreover, these stocks present low-beta characteristics, which have been particularly beneficial as demonstrated in recent trading trends. While the S&P 500 has experienced a downturn exceeding 15.6% over the last quarter, Philip Morris has maintained resilience, yielding an impressive 23.5% return.
Philip Morris is also actively broadening its portfolio into smoke-free products, increasingly comprising its revenue. This strategic direction not only enhances the company’s adaptability to changing consumer preferences but serves to future-proof its business model.
Balancing Yields and Security
While higher yields can be found in Altria, the stability and safety offered by Philip Morris seem already accounted for in its valuation. Currently, shares trade at a price-to-earnings (P/E) ratio of approximately 33.4x—considerably higher than the staples sector average of 15.5x. Such a premium underscores market confidence in Philip Morris’s growth potential compared to its peers.
In February 2025, Barclays analysts reiterated their “Overweight” rating for Philip Morris stock, setting a price target of $175. This forecast reflects a perceived net upside potential of 16.3% from current trading levels, showcasing the security and growth prospects that await investors.
Before proceeding with your next investment decision, consider the insights from industry analysts.
MarketBeat monitors top Wall Street analysts as they recommend stocks to clients. Recent evaluations highlight five under-the-radar companies that analysts believe are poised for growth before the broader market takes note.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.
