It’s understandable to feel uneasy with the stock market’s decline. There’s always some new concern cropping up, and it can feel never-ending. But, these tough times will eventually fade. Remember the Great Recession? Or the early pandemic days? Those were challenging, but they’re behind us now. Historically, the stock market does bounce back, even after bear markets. For those investing long-term, downturns can actually provide prime buying opportunities since even well-performing companies tend to see their stocks affected.
Speaking of investment opportunities, I’ve been eyeing two high-dividend stocks for when the market dips even further.
I think Coca-Cola (NYSE:KO) is worth discussing. They’ve built a strong brand presence globally with drinks like Sprite and Fanta. However, they’re facing challenges in boosting sales volume. For 2025, the increase was a solid 5%, not counting currency fluctuations or mergers, but the price and product mix raised figures by 4%. Concentrate sales added another percentage point.
However, it might not be something to stress over too much. Consumers are feeling the heat from inflation, yet Coca-Cola’s products are still gaining market share, showing their brand strength.
Additionally, Coca-Cola has a solid history of raising dividends. Just last February, they announced an increase of over 5% in their quarterly dividend—marking the 63rd consecutive year they’ve done so. They’re part of an elite group known as “dividend kings” that have continuously increased dividends for at least half a century. So, it’s likely there will be more increases announced soon.
The payout ratio stands at 67%, meaning the company has enough profits to support this dividend. With a dividend yield of 2.6%, that’s notably higher than the S&P 500’s average of 1.1%.
Now, let’s talk about Realty Income (NYSE:O). As a real estate investment trust (REIT), it’s usually a go-to for those seeking dividends. REITs need to distribute at least 90% of their taxable income as dividends. Realty Income relies on retail tenants for about 80% of its rent, which some might find concerning given the rise of online shopping and market fluctuations. Yet, they’ve maintained high occupancy rates—almost 99% in the third quarter—and increased rents by 3.5% upon lease expiry.
The company is known for paying out monthly dividends and has made a habit of increasing them several times a year, with the latest one in December. Remarkably, they’ve achieved this for 113 consecutive quarters. In the last quarter, they distributed around 75% of their adjusted funds from operations, which is crucial for REITs as it reflects distributable cash flow. Realty Income also boasts a dividend yield of 5%.
Before jumping into buying Coca-Cola stock, keep this in mind: An analysts’ team recently identified ten stocks they believe offer better returns right now, and Coca-Cola wasn’t on that list. It’s always worth considering other options, especially those with potential for substantial gains in the coming years.
