Daniel Foelber, Scott Levine, and Lee Samaha, The Motley Fool
Sat, May 3, 2025, 2:45 AM 7 min read
In This Article:
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A adjacent 2.8% dividend output volition tide Coca-Cola investors implicit arsenic they hold for much clarity connected the economy.
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WM is arsenic tariff-resistant arsenic it gets successful the concern sector.
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American Electric Power is simply a starring regulated inferior that provides an charismatic enactment for blimpish income investors.
The large banal marketplace indexes person staged an epic betterment successful caller weeks but are inactive down twelvemonth to day (YTD). But that doesn't mean each stocks are participating successful the sell-off.
Stable stalwarts Coca-Cola (NYSE: KO), WM (NYSE: WM), and American Electric Power (NASDAQ: AEP) person produced respectable gains successful 2025. Here's wherefore each 3 dividend stocks are worthy buying present for risk-averse investors looking to make passive income.
Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now. Continue »
Lee Samaha (Coca-Cola): If you privation to play it harmless and thrust retired the markets portion you hold for much clarity implicit the tariff quality and geopolitical conflict, investing successful Coca-Cola is an fantabulous option. At the clip of this writing, the banal is up implicit 16% successful 2025, compared to a much than 5% diminution successful the S&P 500 scale (SNPINDEX: ^GSPC), and that reflects the market's designation that the banal is simply a haven successful turbulent times. And if the upwind remains stormy, investors volition proceed to request a haven.
Moreover, the stock's adjacent 2.8% dividend output doesn't hurt, either. Coca-Cola's comparative immunity from tariffs comes from its inclination to nutrient locally and merchantability locally. In addition, its vulnerability to tariffs connected packaging materials similar aluminum isn't a needle mover, arsenic the metallic is simply a comparatively tiny portion of its costs.
Turning to the different broadside of the demand/supply equation, its halfway Coca-Cola beverage is much of a user staple than a user discretionary product, meaning it's not the benignant of merchandise that consumers chopped backmost connected successful a large mode erstwhile the system is nether pressure.
If and erstwhile the tariff quality resolves, Coca-Cola banal volition astir apt underperform, truthful it doesn't marque consciousness to beryllium overloaded successful the stock. However, it's a bully enactment if you are looking for a comparatively harmless mode to equilibrium a portfolio oregon parkland immoderate currency portion waiting for much clarity connected the economy.
Daniel Foelber (WM): The institution formerly known arsenic Waste Management is up implicit 13% YTD astatine the clip of this writing, handily outperforming the S&P 500 with its much than 5% decline.