3 Dividend Stocks to Consider During Market Volatility

This March has brought market turbulence, with notable declines in various sectors. The S&P 500 has fallen about 10% from its peak, and the Nasdaq Composite has dropped around 14%. While this may seem alarming, pullbacks are common in long-term investing, particularly after a robust performance since early 2023.

In times of market fear, it’s often beneficial to search for investment opportunities. As legendary investor Warren Buffett stated, one should feel cautious when others are greedy and eager when others are scared.

Here are three blue-chip dividend stocks that are worth considering right now.

Realty Income: A Strong REIT Option

Realty Income (O) is a real estate investment trust (REIT) that focuses on acquiring and leasing properties to various consumer-oriented tenants, including retailers and grocery stores. By law, REITs must distribute at least 90% of their taxable income to shareholders, making them appealing for dividend-seeking investors. Currently, Realty Income offers a dividend yield of 5.6% and has increased its dividend for 32 consecutive years, showcasing a strong commitment to returning value to shareholders.

Despite facing challenges, with shares down 25% from their previous highs due to increased borrowing costs linked to rising interest rates, Realty Income has reported a nearly 12% growth in funds from operations per share over the last three years. Today, it trades at just over 13 times its operating cash flow, which is near the lower end of its 10-year range. Should interest rates begin to decline, it could provide a boost to Realty Income’s operations. For investors looking to weather the current market uncertainty, this stock stands out as a solid option.

Canadian National Railway: A Resilient Player Amid Tariff Concerns

The ongoing tariff issues between the U.S. and Canada have impacted many sectors, with Canadian National Railway (CNI) experiencing a nearly 30% decline from its high. This Canadian company is a major player in the North American railway industry, operating over 18,800 miles across Canada and the U.S. and transporting essential resources like petroleum, grains, and chemicals.

Although current tariffs and recession threats could pose temporary challenges, railroads remain the most efficient means of transporting goods, a fact unlikely to change anytime soon. Canadian National Railway has demonstrated strong management, navigating through prior market fluctuations, as evidenced by its 29 consecutive years of dividend increases.

Currently, its dividend yield is 2.55%, the highest since the 2008 financial crisis. Furthermore, analysts project the company will achieve an average earnings growth of 9.6% annually in the long term, with a notably sustainable payout ratio of just 44% of anticipated 2025 earnings. This price drop provides a compelling opportunity to invest in a solid company.

Carlisle Companies: A Long-Term Growth Prospect

Carlisle Companies (CSL), while not widely recognized among the general public, is a significant player in the real estate sector. The company specializes in construction and waterproofing materials for commercial buildings and has seen consistent growth over decades, particularly as the need for efficiency upgrades in aging commercial properties continues to rise.

The recent economic slowdown has led to a decline in the stock price driven by recession fears, which could impact short-term investments in commercial properties. However, Carlisle Companies has a strong track record, raising its dividend for 48 consecutive years across various economic cycles.

With analysts estimating earnings growth of about 15% annually in the next few years, there's a strong case for long-term investment in this stock. The projected increase in earnings per share, from approximately $20 in 2024 to over $40 by 2030, combined with its current valuation of just 15 times estimated 2025 earnings, makes Carlisle Companies an attractive investment option for those seeking dividend growth.

No positions were held in any of the mentioned stocks. It’s important for investors to conduct their research before making decisions.

stocks, dividends, investment