3 Must Buy Dividend Stocks to Protect You In the Donald Dip

The recent stock market pullback sparked by Donald Trump’s tariff threats has unnerved many investors, especially older ones who could hit the panic button if the latest relief rally runs out of steam. Indeed, Donald Trump doesn’t seem to be watching the stock market as closely anymore. Not while it’s on its way lower.

Either way, I don’t think investors should overreact in one way or another as the S&P 500 gains back some of the ground it lost in recent weeks, as we may still be very early in an ever-evolving trade war, one that could cause a recession and perhaps more downside in the broad market averages.

Either way, playing defense with some less-correlated dividend stocks could be a wise idea if you’re looking for a smoother way to ride out this wobbly bull market as it runs into a rocky road.

McDonald’s

McDonald’s (NYSE:MCD) stock is a recession-resilient name that could make sense to hold if you’re anticipating economic panic and more inflation — something close to stagflation. Sure, McDonald’s may have overestimated its pricing power during the last huge wave of high inflation. But I think it’ll show more restraint the next time inflation heats up, as the legendary restaurant chain looks to gain share (rather than lose it) in a rush to value menus.

It’s not just McDonald’s recent success with value menus that has me bullish on the 2.32%-yielding dividend stock. The company may just have what it takes to grow through a turbulent time as it upgrades its stores with AI while looking to win consumers back with new, tasty menu offerings (think the McVeggie and Big Arch, both of which used Canada as a testing ground).

Of course, a burger-flipping robot may still be years away. But as the firm looks to modernize equipment and tools with AI, I do think production costs will move lower as the level of quality inches higher. Indeed, perhaps McDonald’s should trade like more of an AI stock as we enter the realm of “physical AI.” Though a robot won’t be making your Big Mac anytime in the near future, I wouldn’t be surprised if that’s the norm five years from now.

All in all, I view MCD stock as a firm that can keep growing in turbulent times.

Mondelez

Mondelez (NASDAQ:MDLZ) makes the sweets we all know and love. The stock itself has been rather bitter in recent years, now down 17% from 2023 all-time highs. Despite falling 6% in two years, I view the name as a great dividend pick for investors looking to ride out some tough times.

Recently, the stock got a nice vote of confidence from an analyst over at Morgan Stanley (NYSE:MS) named Megan Alexander Clapp. They’re a fan of Mondelez’s exposure to “higher-growth geographies.” At just 18.9 times trailing price-to-earnings (P/E), the wide-moat confectionary maker certainly doesn’t seem priced with growth in mind.

And with a nice 2.91% dividend yield, perhaps the low-beta (0.51 at writing) stock could be a great way to navigate a harsher stock market. With high cocoa prices weighing heavily and the impact of tariffs still a big question mark, though, investors should be ready for a rough ride.

Crown Castle International

Crown Castle International (NYSE:CCI) is a cell tower REIT that boasts a 5.88% yield. Shares have been on the mend this year, gaining almost 17% year to date. Despite the sudden surge and recent fiber segment sale, which bodes well for the health of the payout, shares are still down close to 50% from their all-time highs.

With the CEO recently getting ousted, there’s a haze of uncertainty surrounding the name as it it seeks out a new person for the job. Although only time will tell if the recent rally has more room to run, I am a fan of the big changes over at the firm as it aims to engineer a comeback. Perhaps recent asset sales are a step in the right direction.

Wolfe Research recently hiked its CCI rating to peer perform (from underperform), citing “upside potential” from “margin expansion,” among other looming catalysts. I couldn’t agree more. CCI stock could prove a cheap (and stabler) way to get income here, given much of the damage seems to have already been done.

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