2 Dividend Stocks Built to Hold Up When Markets Don't
Key Points
These two companies have a long history of raising their dividend payments.
Dividend stocks offer you passive income in any market environment.
- 10 stocks we like better than Johnson & Johnson ›
The S&P 500 has advanced for the past three calendar years and continues to march higher in 2026, even reaching record levels. But this isn't without interruption, particularly in recent months. Investors have worried about the ongoing turmoil in Iran, higher oil prices, rising inflation in the U.S., and growing levels of spending in the artificial intelligence (AI) space. These concerns have weighed on the S&P 500 from time to time -- and could even potentially lead to longer-lasting declines.
So, what's an investor to do in such a situation? It's the perfect time to load up on dividend stocks, or companies that pay shareholders just for owning the stock. A dividend stock will offer you recurrent income regardless of the market's performance. This is great during any market environment, but it can be a real portfolio-saver during times of trouble. That's because these payments may at least partially compensate for weakness in some of your other investments. Even better, certain dividend players operate in areas -- such as healthcare -- that generate steady revenue even when times are tough.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Which dividend stocks to choose? The perfect place to start is with the list of Dividend Kings, companies that have lifted their dividend payments for at least the past 50 consecutive years. They are committed to dividend growth and have demonstrated that they have the resources to keep these payments going. With this in mind, let's check out two dividend stocks built to hold up when markets don't.
Image source: Getty Images.
1. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) is a name you might know well, particularly for certain consumer health products. The company actually exited that business a couple of years ago and shifted the focus to its pharmaceutical and medtech units. This move, putting all resources into the highest-potential areas, proved to be a wise one as we can see through recent earnings reports.
J&J now has 28 products and platforms that bring in more than $1 billion in annual revenue. Its innovative medicines (pharma) business had eight brands growing in the double digits in the recent quarter, and J&J is on track toward its goal of becoming the No. 1 oncology company by 2030. The healthcare giant is also progressing toward another important goal: more than $100 billion in revenue this year. This would be the highest revenue level ever for J&J.
As for dividends, J&J pays $5.36 per share, representing a dividend yield of 1.9%. So, an investment in J&J brings you a winning healthcare business along with passive income in the form of a dividend that's been growing over time.
2. AbbVie
AbbVie (NYSE: ABBV) is the company behind the world's first $20 billion drug, immunology blockbuster, Humira. That top-selling drug has since lost exclusivity, resulting in declines in sales, but AbbVie was prepared with newer immunology products, Skyrizi and Rinvoq, and these products are producing impressive results. In the recent quarter, Skyrizi and Rinvoq each delivered revenue growth of about 24% to more than $5 billion and $2 billion, respectively.
The company also has a leading aesthetics portfolio, with anti-wrinkle treatment Botox and filler Juvederm, as well as neuroscience and oncology portfolios. In the latest quarter, several of the company's neuroscience drugs delivered double-digit growth, including bipolar disorder treatment, Vraylar. That product generated more than $1 billion in revenue.
And total revenue continues to climb, even with the loss of Humira exclusivity, showing the strength of AbbVie's portfolio of commercialized drugs. In the quarter, worldwide revenue advanced 10% to more than $16 billion.
Like J&J, AbbVie has a long history of rewarding shareholders with dividends and lifting these payments year after year. This has brought the payment to $6.92, for a dividend yield of 2.7%, and makes AbbVie a stock built to hold up even when markets don't.
Should you buy stock in Johnson & Johnson right now?
Before you buy stock in Johnson & Johnson, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Johnson & Johnson wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $414,015!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,385,459!*
Now, it’s worth noting Stock Advisor’s total average return is 960% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 9, 2026.
Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
