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2 Unstoppable Dividend Stocks to Buy if There’s a Stock Market Sell-Off

Admittedly, a broad sell-off in the stock market may seem scary. There seems to be no end to the bad news, and investors have something new to worry about every day.

But these times will pass. The Great Recession and the early days of the pandemic, although painful for many people for a variety of reasons, are now behind us. And the stock market The bear market has finally recovered. For long-term investors, these down markets may present a buying opportunity. This is because broad-based sales also affect powerful companies.

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These two dividend-paying stocks are at the top of my list to buy when the next big sell-off happens.

Image source: Getty Images.

Coca Cola (NYSE: KO) sells beverages under well-known brands worldwide. These include the eponymous brand Sprite and Fanta. Besides soda, it also sells other beverages such as water, juice, and plant-based beverages.

Coca-Cola struggled to increase sales volume. For the full year 2025, sales were up a solid 5% after removing the effects of currency translations and acquisitions/divestitures. But price/mix added 4 percentage points, while concentrates increased sales by 1 percentage point.

However, this is not a concern, given consumer fatigue with a persistent inflation crisis. In a sign of the strength of the brand, Coca-Cola’s products continued to gain market share.

Coca-Cola, meanwhile, has built an impressive dividend track record. In February last year, the board announced a more than 5% increase in quarterly pay. This is the 63rd consecutive year with this increase and the company has Dividend King. This is an elite group of companies that have increased their dividends for at least 50 years in a row. If history is any guide, investors can expect Coca-Cola to announce another increase soon.

The company’s payout ratio, which compares dividends to earnings, is 67%, suggesting Coca-Cola has the profits to support dividends. The dividend yield of the shares is 2.6%, which is 1.5 points higher than before. S&P 500 index 1.1%.

Real Estate Income (NYSE:O) It is a real estate investment trust (REIT) that generally makes ideal investments for dividend-hungry investors. This is because REITs must pay out at least 90% of their taxable income as dividends.

It gets about 80% of its rent from retail tenants, which could spook investors given the online threat and sensitivity to the economic cycle. But Realty Income has been doing this for a long time and occupancy rates are still high. The hotel, which had an occupancy rate of almost 99% in the third quarter, also achieved a 3.5% rent increase on expiring leases.

Realty Income, which pays a monthly dividend, has historically increased the payout several times a year. The last time he did this was in December. This makes it 113 consecutive quarters in which the company has collected dividends.

The company paid out about 75% of adjusted funds (AFFO) in the third quarter, an important metric for REITs because it measures cash flow available for distribution. Realty Income’s shares have a 5% dividend yield.

Before buying stock in Coca-Cola, consider:

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Lawrence Rothman, CFA It has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a feature disclosure policy.

2 Unstoppable Dividend Stocks to Buy in Case of Selling in the Stock Market originally published by The Motley Fool

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