The S&P 500 has rallied nearly 30% over the past 12 months, even as unpredictable economic policies and geopolitical conflicts rattled the global economy.
But high-flying AI stocks drove much of that rally — and the index now looks historically expensive at 33 times earnings
Whenever the market gets overheated, I make sure that I own some defensive dividend plays that can weather the imminent pullback. The consumer staples sector — which houses some of America’s most resilient blue chip stocks — is a great place to look for those investments. Let’s take a look at three of my favorite dividend-paying consumer staples plays — Coca-Cola (NYSE: KO), Altria (NYSE: MO), and Procter & Gamble (NYSE: PG) — and see why they’re worth buying as most investors focus on higher-growth AI stocks or news-driven energy plays.
Coca-Cola Coca-Cola, the world’s largest beverage company, pays a forward yield of 2.7%. It’s raised its dividends for 64 consecutive years, making it a Dividend King that has raised its payout annually for at least 50 straight years. It maintained that streak through nine official recessions, indicating it’s an evergreen company that can easily weather any future downturns.