Three Dividend Stocks That Might Surprise You in a Market Sell-Off

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Imagine, if you will, a movie where everything seems to be going swimmingly for the protagonist. They’ve secured the big deal, found their true love, and even managed to keep the dog from chewing up the furniture. But then-there’s always a “but” in these movies, isn’t there?-something goes horribly wrong. A dramatic twist appears out of nowhere, and the world as they knew it comes crumbling down. If you’ve seen more than your fair share of films, you know the pattern. And, if we’re honest, the stock market isn’t all that different.

Right now, we’re living in what could only be described as a financial equivalent of a feel-good movie. The major stock indexes are dancing around all-time highs, and investors are patting themselves on the back. The Federal Reserve has just cut interest rates and indicated that more cuts might be coming. It’s a moment of triumph-until, as often happens in the real world, a plot twist suddenly emerges. A sharp correction, perhaps by early 2026, wouldn’t be the most surprising twist in this tale.

But here’s the thing: Just like in the movies, adversity often leads to opportunity. And if that market sell-off does indeed arrive, there are some steadfast dividend-paying stocks that could be worth considering. Let’s take a wander through three of these stalwarts and see if they’re the hidden gems I suspect they are.

1. AbbVie

At first glance, you might look at AbbVie (ABBV) and wonder if it’s been mispriced by the market. After all, a price-to-earnings (P/E) ratio of 103 seems absurd, doesn’t it? It’s the kind of number that would make any sensible investor break out into a cold sweat. But before you make a hasty exit, let’s take a deeper look. You see, that high P/E ratio is more a reflection of AbbVie’s past success than its future potential. On closer inspection, the company is trading at a much more reasonable forward earnings multiple of around 15. The price-to-earnings-to-growth (PEG) ratio, which factors in future earnings projections, sits at a shockingly low 0.39.

Now, I know what you’re thinking: “That’s all well and good, but why should I trust AbbVie to continue delivering?” It’s a fair question. And, in my humble opinion, the answer lies in its pharmaceutical portfolio. AbbVie’s autoimmune disease drugs, Skyrizi and Rinvoq, are showing strong growth. Add to that a promising range of migraine therapies like Qulipta and Ubrelvy, and the future pipeline looks even more exciting. With around 50 programs in late-stage clinical development, there’s ample reason to be optimistic about AbbVie’s trajectory.

If the market does decide to take a tumble, I suspect AbbVie’s share price will hold up better than most. After all, people don’t suddenly stop needing their medications. And, if the stock does dip, that only makes its 3% dividend yield even more enticing for income investors. In short, AbbVie isn’t just a big pharma titan; it’s a Dividend King with a track record of increasing dividends for over 50 consecutive years.

2. Enterprise Products Partners

Now, let’s talk about a company that’s as steady as a 50,000-mile pipeline. Yes, you read that right. Enterprise Products Partners (EPD) is a midstream energy company that has proven its resilience through every economic downturn imaginable-whether it was the global financial crisis, the oil price collapse of the mid-2010s, or the chaos of the COVID-19 pandemic. If it can survive those, what’s a little market sell-off in comparison?

Enterprise’s business model is a thing of beauty, not unlike the classic bungee jump where the cord is always stretched just enough to give you a thrill, but never enough to snap. The company operates an extensive network of pipelines that transport crucial commodities like crude oil, natural gas, and natural gas liquids across the U.S. It’s this infrastructure that makes Enterprise relatively immune to the vagaries of the economy. And, let’s not forget, about 90% of its long-term contracts come with escalation clauses tied to inflation, which means it’s as resilient as a marathon runner who’s never late for the race.

But here’s where things get really interesting. The rise of artificial intelligence (AI) and its insatiable thirst for electricity could become a significant growth driver for Enterprise. AI applications often rely on data centers, which in turn require enormous amounts of power-natural gas being the fuel of choice for many power plants. This is a trend that could help keep Enterprise’s cash flow steady and reliable.

And if you’re looking for dividends, look no further. Enterprise’s yield currently stands at a hefty 6.8%, and it’s increased its distribution for 27 consecutive years. That’s the kind of consistency that turns investors into believers. I fully expect this streak to continue.

3. Pfizer

Ah, Pfizer (PFE). The name alone conjures up images of vaccine syringes and COVID-19 headlines. But there’s much more to this pharmaceutical giant than its role in the global pandemic. If you’re after a juicy dividend, Pfizer’s offering a 7.15% yield-almost enough to make you sit up and take notice. Of course, there’s the small matter of its stock underperforming in recent years, and, let’s face it, the looming patent cliff hanging over several of its blockbuster drugs. That’s not exactly the plotline of a Hollywood hit, is it?

However, here’s the thing: Much of this bad news is likely already priced into Pfizer’s share price. The stock is currently trading at a modest 7.7 times forward earnings, and its PEG ratio is 0.96, which means it’s just under the level that many investors deem “attractive.” So, if we’re in for a correction, I’m not convinced Pfizer will get much cheaper.

Moreover, Pfizer has a deep product pipeline, with 108 candidates in various stages of development. This includes promising drugs for eczema, migraines, and cancer. And let’s not forget about its strong lineup of existing products, which should help cushion the blow of any patent expirations.

In the end, Pfizer offers the kind of value and stability that should appeal to contrarian investors looking for dividend yield in a market that may not be quite as sunny as it appears today. A little bit of risk, sure-but with a decent chance of reward.

So, while the market might feel like a rollercoaster right now, these three dividend stocks are, in my opinion, worth keeping an eye on. They’re not the ones most investors will be talking about, but then again, that’s often where the real opportunities lie. And if history has taught us anything, it’s that it’s always the quiet ones that tend to surprise you the most. 🚀

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2025-09-19 12:50