“Trump-era economics” has consistently proven difficult to predict. Shortly after President Trump took office, the implementation of tariffs caused the S&P 500 to lose nearly 20% of its market value in a single month; however, as he later made concessions on some of these tariffs, the index ultimately finished the year with an 18% gain. Subsequently, a conflict with Iran led to the blockade of the Strait of Hormuz, causing oil prices to skyrocket—at one point surging parabolically—and remain up more than 50% year-to-date, sparking fears of a stock market crash and a global depression. Although there was earlier speculation that oil prices might hit $200 per barrel, tensions appear to have eased for now.
According to GOBankingRates, most investors prefer to avoid such volatility. This is where high-quality companies with reliable dividend payouts come into play; such firms continue to distribute dividends to investors even during economic recessions or periods of financial hardship. With most dividend-paying stocks, investors often face a choice between “high dividends with slow growth” and “low dividends with significant growth potential.” Below are three high-quality dividend stocks worth considering in the current economic climate.
- Exxon Mobil
Exxon Mobil is the largest oil and gas company in the United States. Its stock price rebounded following the blockade-related volatility; although it has since retreated from its all-time high, it remains a solid hedge should uncertainty regarding the Strait of Hormuz resurface.
Exxon Mobil offers a dividend yield of 2.71%. The company has operated continuously since the 1999 merger of Exxon and Mobil—both of which trace their roots back to Standard Oil, founded in 1870. Having raised its dividend for 43 consecutive years, the company holds the status of a “Dividend Aristocrat.” 2. Verizon
For investors seeking dividend income, Verizon’s 6% yield is hard to ignore. While investors might not typically expect significant growth, the company has benefited from its AI and 5G initiatives; its stock price has risen 15% this year—a rare and pleasant surprise for a low-volatility stock.
The majority of Verizon’s revenue comes from consumer wireless services. Although consumers may cut back on spending during tight economic times, they rarely reduce spending on mobile phone plans; these expenses often go unnoticed yet generate billions of dollars in quarterly revenue for the company.
- Coca-Cola
Coca-Cola sells a wide range of everyday beverages. As the company expands into key markets, it generates stable, predictable revenue, with a projected year-over-year revenue growth rate of 2% for 2025. The stock offers a dividend yield of 2.82% and has been a fixture in Warren Buffett’s portfolio for nearly 40 years. Coca-Cola owns more than 30 brands, each valued at over $1 billion.