In essence, there’s a lot of concern brewing about a potential stock market collapse. You’re definitely not the only one feeling this way. With global chaos, it’s quite understandable, especially when you examine how the markets have fared over recent years. S&P500:
|
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S&P500 return |
|---|---|
|
2016 |
12% |
|
2017 |
21.8% |
|
2018 |
(4.4%) |
|
2019 |
31.5% |
|
2020 |
18.4% |
|
2021 |
28.7% |
|
2022 |
(18.11%) |
|
2023 |
26.29% |
|
2024 |
25.02% |
|
2025 |
17.88% |
Source: Slickcharts.com. Returns include reinvested dividends.
These figures are quite remarkable, especially when considering that the typical yearly average gain for the S&P 500 is roughly 10%. Most years showed gains in the double digits, with only two seeing declines. However, it’s reasonable to predict some downturns in the next one to three years.
So, if you’re pondering what kind of dividend stocks to grab now, maybe think about your own worries regarding potential crashes. Right? There are a couple of factors to weigh.
1. Kimberly Clark
kimberly clark (NASDAQ:KMB) This company should ring a bell since they’re home to well-known brands like Huggies and Kleenex. Their products, such as diapers and cleaning supplies, are essentials that people buy regardless of market conditions, making them relatively defensive in nature. (They’re also looking to take over another company soon.)
However, they’ve faced challenges in recent times. As of May 5, the stock has plummeted around 22% in the last year. Yet, it’s now appealingly priced, with a forward price/earnings ratio of 12.8, which is quite below its recent average of 18.6. The aim is to cut costs and modernize operations, with a target gross profit margin of at least 40%.
Currently, Kimberly-Clark’s dividend yield is an impressive 5.4%, and they’ve managed to boost their dividend for 54 straight years. This could be a good source of income for long-term investors while they work on a comeback.
2. Real Estate Income
real estate income (New York Stock Exchange: O) This stock looks solid for weathering downturns and longer-term investment too. It operates as a real estate investment trust (REIT), buying and leasing large amounts of real estate. Realty Income currently offers a notable dividend yield of 5.1% and has maintained consistent dividends for 670 months in a row.
As of late 2025, the firm owns over 15,500 properties across all US states and several European countries, boasting an occupancy rate of around 98.7%. Major tenants include names like Dollar General and Walgreens.
The stock appears fairly priced at a forward price-to-earnings ratio of about 40, similar to its five-year average. Given the solid management that has kept those occupancy rates high, it looks promising for patient investors. Plus, tenants usually lock into long-term contracts, which is a plus.
Should you buy Kimberly-Clark stock now?
Before diving in to purchase Kimberly-Clark stock, it might be wise to consider a few things:
According to analysis from Motley Fool Stock Advisor, they’ve highlighted what they believe are the best 10 stocks available right now for investment. Kimberly-Clark isn’t part of that list, which might make you pause.
It’s always good to be cautious. Some stocks, like Netflix, have proven incredibly lucrative over time. If you had invested $1,000 back then, you’d be seeing a hefty return now! On the other hand, the stock advisor program has outperformed the S&P 500, making it worth considering joining.
*The stock advisor’s performance will update on May 10, 2026.
Disclosure: I have a position in real estate income. The Motley Fool recommends several companies, including Kenvue and Realty Income.
