The stock market has experienced volatility recently, with major indexes recovering but still down year-to-date. However, some stable dividend-paying stocks have produced gains worth considering for risk-averse investors seeking passive income. Coca-Cola is a classic Warren Buffett holding that has shown resilience during market turbulence.
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The stock is up over 16% in 2025, compared to a more than 5% decline in the broader market.
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Coca-Cola’s business model of producing and selling locally minimizes exposure to tariffs, and its core beverage remains in demand even during economic pressure. The stock features a nearly 2.8% dividend yield.
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WM, formerly known as Waste Management, is another company that has weathered the market downturn well, with its stock up over 13% year-to-date. The company reported excellent first-quarter 2025 results, with a 16.7% increase in revenue and a 12.2% growth in adjusted operating EBITDA. WM benefits from a diverse customer base and long-term contracts that insulate it from short-term economic fluctuations.
The company has reduced its share count by 11% and doubled its dividend over the last decade. American Electric Power (AEP) is a utility stock that has attracted investors seeking stability during economic uncertainty.
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While the S&P 500 has fallen more than 5% since the start of the year, AEP has soared over 17%. The stock offers a forward dividend yield of 3.5%.
Reliable dividend stocks for stability
As a regulated utility, AEP is assured certain rates of return, giving management a clear vision for financial planning, capital expenditures, and dividend payments.
The company has planned approximately $54 billion in infrastructure upgrades from 2025 through 2029. NextEra Energy is another solid pick among dividend stocks. Known for its focus on energy resources, it presents a compelling investment opportunity during market pullbacks.
Alphabet, Google’s parent company, made a big pivot in 2024 by deciding to pay a dividend for the first time. While the current yield is around 0.5%, the company has plenty of room to grow its dividend as earnings continue to surge. Alphabet’s heavy investments in AI and its leadership in this area have been more of a tailwind than a headwind thus far.
Fortis, a Canadian utility giant, is a dividend king that has raised its dividend each year for more than five decades straight. The company’s rock-solid business model, revolving around providing electricity and natural gas utility services to clients in North America, offers stable cash flow growth. Fortis has a $26 billion five-year capital program already priced into its forward projections.
Johnson & Johnson, a blue-chip giant, focuses on growing organically and via strategic pipeline acquisitions. The company’s stock price has remained relatively stable, offering a dividend yield of 3.3%. Johnson & Johnson is expected to generate mid-single-digit growth on the top and bottom line for the foreseeable future, making it an attractive option for investors looking to ride out market volatility.
These dividend stocks—Coca-Cola, WM, American Electric Power, NextEra Energy, Alphabet, Fortis, and Johnson & Johnson—provide a mix of stability, growth potential, and defensive characteristics that may appeal to investors in the current market environment.
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