After the latest inflation reading came in above 4%, investors who have largely ignored market risks in 2026 are starting to pay closer attention.
But to be fair, with ongoing tensions in the Middle East and a high-stakes election season, astute observers have already been watching the headlines closely to begin with.
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While defensive stocks have lagged during bull markets over the past few years, they remain an important part of a balanced portfolio and can provide tremendous peace of mind in times like these. These companies sell products and services people rely on regardless of economic conditions, and they provide reliable income independent of market ups and downs.
The following seven stocks offer exposure to resilient sectors while providing at least a 2% dividend along with long-term reliability in sales and profits.
| Stock | Market capitalization | Forward dividend yield |
| Altria Group Inc. (ticker: MO) | $115 billion | 5.9% |
| Coca-Cola Co. (KO) | $345 billion | 2.6% |
| Gilead Sciences Inc. (GILD) | $157 billion | 2.6% |
| Johnson & Johnson (JNJ) | $562 billion | 2.3% |
| Lockheed Martin Corp. (LMT) | $123 billion | 2.6% |
| Southern Co. (SO) | $105 billion | 3.2% |
| Verizon Communications Inc. (VZ) | $190 billion | 6.1% |
Altria Group Inc. (MO)
Market value: $115 billion Dividend yield: 5.9%
Altria has built an impressive track record despite operating in the mature tobacco industry. The company has raised its dividend for 57 consecutive years, making it one of the most reliable income stocks on Wall Street. While traditional cigarette sales continue to decline, Altria has expanded into newer nicotine products, including vaping and nicotine pouches, to help maintain its relevance and diversify revenue streams. The company’s strong cash flow continues to support both its operations and generous shareholder payouts. For investors seeking dependable income and a proven ability to navigate industry change, Altria remains one of the market’s premier dividend stocks.
Coca-Cola Co. (KO)
Market value: $345 billion Yield: 2.6%
Coca-Cola is a classic defensive stock backed by one of the world’s most recognizable brand portfolios. Beyond its flagship soft drink, the company owns a wide range of beverage brands that generate steady revenue across global markets. Its products are inexpensive everyday purchases, which helps keep demand relatively stable even when consumers pull back on larger discretionary spending. That resilience has made Coca-Cola a reliable performer through multiple economic cycles. Income investors are also drawn to its exceptional dividend record. Coca-Cola has increased its payout for 64 consecutive years, placing it among the most dependable dividend growers available.
Gilead Sciences Inc. (GILD)
Market value: $157 billion Yield: 2.6%
Healthcare demand tends to remain steady regardless of economic conditions, making Gilead Sciences an attractive defensive stock. The company generates significant recurring revenue from its leading HIV treatment franchise while expanding into oncology and other specialty therapies. Those newer businesses provide additional growth opportunities while reducing reliance on any single product category. Gilead has also become a reliable dividend payer. Its quarterly payout has nearly doubled over the past decade, supported by strong cash flow and a healthy balance sheet. For investors looking for a healthcare stock that combines stability, income and long-term growth potential, Gilead remains a compelling option.
Johnson & Johnson (JNJ)
Market value: $562 billion Yield: 2.3%
Johnson & Johnson has long been a favorite among conservative investors. As one of the largest and most financially secure companies in America, it benefits from a diversified healthcare business that spans pharmaceuticals and medical technology. The company is one of only two U.S. corporations with a AAA credit rating, and it has increased its dividend for more than 60 consecutive years. Those achievements reflect consistent profitability, strong cash flow and disciplined management. Because demand for healthcare products remains relatively stable across economic cycles, Johnson & Johnson offers a level of predictability that few companies can match.
[Read: 7 Best Investments During a Recession]
Lockheed Martin Corp. (LMT)
Market value: $123 billion Yield: 2.6%
Lockheed Martin occupies a unique place among defensive stocks because its business is driven largely by government defense spending rather than consumer demand. As the world’s largest defense contractor, the company produces critical military platforms including the F-35 fighter jet and C-130 Hercules transport aircraft. Long-term government contracts provide reliable revenue, while a massive backlog of existing orders helps support future growth. The company continues to generate strong cash flow and has more than doubled its dividend over the past decade. With high barriers to entry and few true competitors, Lockheed Martin enjoys a durable competitive position that is difficult to replicate.
Southern Co. (SO)
Market value: $105 billion Yield: 3.2%
Utilities have long been viewed as one of the market’s safest sectors, and Southern Co. is among the largest and most established names in the industry. The company serves roughly 9 million electric and natural gas customers across the Southeast. Because energy remains an essential service, demand tends to stay steady regardless of economic conditions. Southern also benefits from the predictable cash flows that come with operating as a regulated utility. While regulation can limit growth, it also creates substantial barriers to entry and reduces competitive threats. The company recently raised its dividend for the 25th consecutive year, underscoring its commitment to income investors.
Verizon Communications Inc. (VZ)
Market value: $190 billion Yield: 6.1%
Verizon offers one of the highest yields among large-cap blue chips, supported by a communications business that generates consistent cash flow. As the largest wireless carrier in the U.S., Verizon serves nearly 150 million customers. Mobile connectivity has become an essential part of everyday life, making wireless service a recurring expense that most consumers are reluctant to cut even during difficult economic periods. While rapid growth may not be in the cards, Verizon’s stability, market leadership and 20 consecutive years of dividend increases make it a compelling defensive income stock.
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7 Low-Risk Dividend Stocks to Buy for a Choppy Market originally appeared on usnews.com
Update 06/17/26: This story was published at an earlier date and has been updated with new information.
