The S&P 500 (SNPINDEX: ^GSPC) has recovered most of its losses from this year and is roughly flat year to date as of this writing. However, it’s correlating with what’s happening with the war in Iran, and if the ceasefire doesn’t hold or there’s continued volatility in oil prices, it could plunge again.
Successful investing means holding on through challenging times and changing markets. Part of that is owning excellent dividend stocks that protect your portfolio when things get rough. If you need some protection, I recommend Realty Income (NYSE: O), Walmart (NASDAQ: WMT), and Coca-Cola (NYSE: KO).
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Realty Income is a real estate investment trust (REIT), a type of structure where the company pays out 90% of its earnings as dividends. That’s why many dividend investors have a few REITs in their portfolios. Realty Income is one of the largest REITs in the world, and it’s focused on essential retail, although it has diversified into some other industries.
Essential retail is an important part of its model, since its tenants are predominantly large chain stores that can reliably pay their rent and withstand changing economies. Its top tenants by size are 7-Eleven, Dollar General, and Walgreens, and grocers make up 11% of its renter base. Its typical lease agreement is long term, which implies committed revenue for several years, and it sports a 98.9% occupancy rate. That’s why Realty Income stock offers resilience and protection during recessions and other difficult times.
Realty Income grows in two main ways: acquiring other REITs and buying more properties. It had $121 billion in sourced volume last year, of which it acquired 5%, which means it consistently has ways to ensure dividend growth.
Realty Income has a specific perk that most dividend stocks can’t match: It pays a monthly dividend, and it has done so for more than 55 years without missing a month. It has raised the dividend quarterly for the past 114 quarters, and the dividend yields a high 5.1%.
Walmart’s more than 5,000 U.S. discount stores reach 90% of the population, and it’s always finding ways to open new stores, improve its systems, and innovate across its platforms. Recently, e-commerce has been an important growth driver, up 24% year over year in the 2026 fiscal fourth quarter (ended Jan. 31). One way it has an edge in e-commerce is through using its vast store base as a fulfillment network.
