Three Solid Dividend Stocks to Consider During Market Drops

• Abbvie has proven to be quite resilient during stock market dips.

• Enterprise Products Partners stands out as a stable middle-class leader with dependable and increasing distributions.

• Pfizer is known for its attractive dividends and solid ratings.

Think about classic films where everything goes perfectly for the main character—then suddenly, they hit a major obstacle. In Hollywood, the good times rarely last long. That’s kind of how it works in the stock market, too. The main index often hovers at an all-time high, largely thanks to the Federal Reserve reducing interest rates and hinting at more cuts ahead. But, don’t be shocked if unexpected challenges arise.

The truth is, stock market valuations have often been high. The Fed has acknowledged that “uncertainty about the economic outlook continues to rise.” A correction by 2026 wouldn’t be surprising, really.

However, just like in films, hurdles can open doors for opportunity. Here are three dividend stocks that might be worth buying during a stock market downturn:

First up is Abbvie (NYSE: ABBV). At first glance, its high price and return might raise eyebrows. But, if you dive deeper, its metrics reflect past performance. Looking ahead, it seems like a bargain considering predicted growth. Its forward revenue multiple is around 15, while the PEG ratio sits very low at 0.39, based on a five-year revenue forecast.

I have quite a good feeling about Abbvie’s future. Sales of its key drugs, like Skyrizi and Rinvoq for autoimmune diseases, are soaring. The same goes for its migraine treatments Qulipta and Ubrelvy. Plus, Abbvie has a robust pipeline with about 50 programs in late-stage clinical trials.

I believe Abbvie’s stock could outperform many during rough market times. Doctors aren’t going to stop prescribing their medications, and patients will keep using them.

What happens if the broader pharma sector sees a decline? That could make Abbvie’s dividend even more appealing. Being a dividend king, it has raised its dividends for over 50 consecutive years. A pullback could also enhance Abbvie’s nearly 3% dividend yield, making it attractive for income-focused investors.

Moving to another solid choice, Enterprise Products Partners (NYSE:EPD) has shown impressive resilience. Historically, midstream energy companies have provided strong cash flows through tough times, including financial crises and oil price collapses.

Enterprise’s strength comes from its operational structure. This limited partnership manages over 50,000 miles of pipelines that transport crude oil and natural gas across the U.S. Its long-term contracts, many embedded with inflation-based clauses, contribute to its resilience.

Moreover, the rise of data centers for AI applications serves as a major growth driver for the company, as they require substantial electricity, primarily fueled by natural gas.

For dividend lovers, Enterprise is the dream stock, offering a 6.8% distribution yield. Remarkably, this partnership has increased its distribution for 27 straight years. Let’s hope that trend continues!

If you’re after a hefty dividend, Pfizer (NYSE: PFE) could be worth considering. This leading pharmaceutical company features a dividend yield of 7.15%, and its management is dedicated to growing these dividends.

That said, Pfizer’s stock has faced challenges, struggling in recent years. The looming patent cliff threatens their best-selling products, which may lose exclusivity in the next few years.

Still, it seems the market has already factored this bad news into Pfizer’s stock price. Currently, it trades at just 7.7 times future revenue, and its PEG ratio is 0.96, close to a key threshold for many investors. Even with potential corrections, I’m not totally convinced Pfizer is undervalued.

Importantly, Pfizer does have a variety of products that should balance out the anticipated sales declines from lost exclusivity. Drugs like Cibinqo for eczema and Nurtec ODT for migraines are part of the lineup, alongside a strong pipeline of 108 candidates, with a notable number in late-stage testing.

Before investing in Abbvie or any of these stocks, take a moment to weigh your thoughts.