2 Dividend Stocks Every Investor Should Own to Thrive In This Market

In the stock market’s current volatile landscape, dividend investing shines as a superior investment strategy because of the stability and value it offers.  With President Trump’s “Liberation Day” tariffs rattling markets, the S&P 500’s 7% drop to close out last week underscores the need for resilience. Dividend stocks offer just that, blending reliable income with […] The post 2 Dividend Stocks Every Investor Should Own to Thrive In This Market appeared first on 24/7 Wall St..

Apr 8, 2025 - 14:23
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2 Dividend Stocks Every Investor Should Own to Thrive In This Market

In the stock market’s current volatile landscape, dividend investing shines as a superior investment strategy because of the stability and value it offers. 

With President Trump’s “Liberation Day” tariffs rattling markets, the S&P 500’s 7% drop to close out last week underscores the need for resilience. Dividend stocks offer just that, blending reliable income with proven long-term growth. 

24/7 Wall St. Insights:

  • Dividend stocks provide a steady income stream, averaging 9.5% annual returns since 1930, offering a buffer against today’s market volatility and inflation pressures.
  • Income investors seeking a safe haven from market turmoil find dividend stocks deliver immediate cash flow and growth potential, crucial as economic uncertainty looms.
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Since 1930, income-generating S&P 500 stocks have averaged 9.5% annual returns, trouncing the 4.5% returns of non-payers’ 4.5%, even thriving through decades of crisis including the Great Depression to the so-called Lost Decade of the 2000s. Today, as inflation hovers at 3.2% and tariff fears loom, the steady payouts of dividend stocks provide a lifeline, offsetting uncertainty with cash in hand. 

In a market that was stretched to all-time highs, just prior to the tariff mayhem dividend investing isn’t just about survival, but rather seizing opportunity. These stocks deliver immediate returns to weather downturns while positioning portfolios for capital appreciation, a dual edge as trade wars reshape the economy. For investors, it’s a timeless strategy tailored to today’s chaos.

Below are two of the top dividend stocks you can buy today that can provide the ballast your portfolio needs as it is tossed around on the waves of market volatility.

Enterprise Products Partners (EPD)

Enterprise Products Partners (NYSE:EPD) stands out as an exceptional dividend stock to buy as it blends high yields with rock-solid stability. This midstream energy giant’s dividend boasts a 7.2% annual yield, paying $0.54 per share quarterly  and backed by 27 years of consecutive quarterly payouts — 26 of them with increases, making it a Dividend Aristocrat. 

Its fourth-quarter adjusted distributable cash flow hit a record $2.1 billion, covering the dividend 1.7 times, signaling durability even in volatile energy markets. EPD’s $73 billion market cap and investment-grade balance sheet cement its reliability in tough times.

Unlike flashier growth stocks, Enterprise Products Partners’ fee-based model delivers predictable cash flows across its vast network of pipelines, storage, and terminals. Some 90% of revenues are derived from long-term, take-or-pay contracts. Moreover, its dominance in natural gas liquids (NGLs), with facilities spanning the lower 48 states, taps into steady petrochemical demand. 

The midstream leader doesn’t provide guidance, but it has a rich portfolio of projects under construction that are set to boost volumes through 2026. Among them are two gas processing plants in the Permian Basin that it will add this year, the Bahia NGL pipeline, the first phase of its NGL export in Texas on the Neches River, and expansions of its ethane and ethylene terminal at Morgan’s Point in Houston.

At $29 per share, EPD trades at a forward P/E of 9, well below the sector’s 14 average, offering value for its 6% long-term earnings growth forecast. With a 78% payout ratio and $1.2 billion in liquidity, Enterprise Products Partner is a dividend gem for income hunters seeking stability and growth.

Public Storage (PSA)

The second dividend stock that belongs in your portfolio is Public Storage (NYSE:PSA), the largest self-storage real estate investment trust (REIT) in the U.S., with 3,380 facilities and 245 million rentable square feet. 

Public Storage boasts a 4.4% annual dividend yield on an annual payout of $12 per share. Its 33-year streak of consistent payments, with growth since 1992, also earns it Dividend Aristocrat status. The payout has grown 6% annually over the last decade.

The strength of Public Storage lies in its recession-resistant model. Self-storage demand is driven by people moving, downsizing, or business needs, and it holds steady across economic cycles. Public Storage continuously acquires new properties for growth in a very fragmented industry, while investing in digital technology that gives it a competitive edge. For example, 70% of its rentals are via eRental, a digital process via smartphone for accessing the rental agreement. The tech improvements keep costs low and margins high.

Demand can fluctuate, and comparing today’s market to that during the pandemic, conditions are considered soft. Yet with better than 90% occupancy, its premium pricing is not a deterrent. Fourth-quarter revenue hit $1.18 billion, up 5.2%, with core funds from operations (FFO) — a key metric for REITs similar to earnings — at $4.21 per share. It handily covers its $3 per share quarterly payout 1.4 times.

At $276 per share, PSA stock is down 8% year-to-date, offering value for a business with enduring opportunity and growth. With $1.9 billion in liquidity and a 35% stake in Europe’s Shurgard (OTC:SSSAF), Public Storage is a high-yield oasis for income investors.

 

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