Back in 2009, during the Great Recession, Warren Buffett famously remarked, “Every 10 years or so, dark clouds fill the economic skies and a brief rain of money will fall. When those downpours come, it’s important to rush outside with a laundry tub rather than a teaspoon.”
What he meant was that a market crash can be a golden opportunity to scoop up blue-chip stocks at much lower prices. So, if that happens, I’m all in for buying shares of Walmart, Realty Income, and Philip Morris International without any doubts.
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Walmart is an evergreen retailer
As the largest brick-and-mortar retail chain globally, Walmart operates over 10,800 locations across 19 countries and has a remarkable track record of increasing its dividend for 53 consecutive years. While its current 0.8% forward yield may not seem impressive, the stock has gained 155% over the past five years, consistently raising dividends despite economic challenges like wars and recessions.
In recent times, Walmart has enhanced its online marketplace, used its physical stores for online order fulfillment, and improved delivery options. Competing with Amazon, it has also rolled out Walmart+ to rival Amazon Prime.
Walmart hasn’t just stuck to the U.S. either—it’s expanded internationally by increasing Sam’s Club locations to compete with Costco and launched an advertising business that spans stores, mobile apps, and connected TVs. These moves help Walmart stay relevant amid changing consumer spending habits and other retail challenges.
Analysts project Walmart’s revenue and earnings per share to grow at rates of 5% and 9% annually, respectively, from FY2026 to FY2029. However, the stock might not be the cheapest at a P/E ratio of 37 for the next year. A market downturn making shares cheaper could tempt me to buy more of this reliable retail stock.
Real Estate Income is first-class REIT
Realty Income, a major player in the real estate investment trust (REIT) sector, owns over 15,500 commercial properties across the U.S., UK, and Europe. To maintain its favorable tax rate, it must distribute more than 90% of its taxable income as dividends to investors.
Since its IPO in 1994, Realty Income has boasted an occupancy rate exceeding 96%, primarily leasing to recession-resilient businesses like convenience stores and drug stores. Interestingly, even amidst some of its tenants reducing their store count due to broader economic issues, the occupancy rate still rose 20 basis points to 98.9% in 2025.
Moreover, Realty Income stands out for paying a monthly dividend. Since its IPO, it’s increased its dividend 134 times with a current forward yield of 5.2%. There’s an expectation that adjusted funds from operations (AFFO) will grow approximately 2% in 2025, covering a future dividend rate of $3.25 comfortably.
From a valuation perspective, Realty’s stock looks attractive at 14 times this year’s AFFO per share. However, if a market slump occurs, the stock could become even more appealing, raising its yield significantly. Therefore, if its price drops, I’d be inclined to add to my holdings.
PMI is an evolving tobacco company
Philip Morris International is among the largest tobacco companies globally. After splitting from Altria, PMI earns most of its revenue outside the U.S.
With smoking rates declining, PMI might seem like a risky investment. Yet, to adapt, the company continually raises cigarette prices, reduces operational costs, and markets smokeless alternatives like heated products and e-cigarettes.
In 2025, PMI’s revenue from non-smoking products grew 14% organically, making up about 43% of total sales. Analysts expect the company’s sales and EPS to grow at 7% and 10% annually, respectively, between 2025 and 2028 as it broadens its smoke-free options.
Currently, PMI stock is reasonably priced at 25 times this year’s earnings and boasts a forward yield of 3.1%. However, should the market take a downturn, it could lead to more attractive valuations, making it a good time to purchase additional shares if that occurs.
Should you buy Walmart stock now?
Before making a decision on Walmart stock, here are a few considerations:
Our analysts at Motley Fool Stock Advisor have identified 10 stocks they believe are primed for impressive returns, and interestingly, Walmart isn’t among them. These stocks could really perform well in the coming years.
It’s worth noting how some past selections, like Netflix and Nvidia, yielded substantial returns for early investors. For example, those who invested $1,000 in Netflix back in December 2004 would have a whopping $477,813 today! Similarly, Nvidia recommendations have soared to an unbelievable $1,320,088.
Overall, while the stock advisor program has delivered a staggering average return of 986%—outpacing the S&P 500’s 208%—it may be wise to explore other current top picks before jumping into Walmart.
