As we near the half-year mark, the S&P 500 is up 9% year to date. The bull market is thriving, and the market just witnessed the largest initial public offering (IPO) ever, with Space Exploration Technology‘s $1.8 trillion market debut.
That’s a great setup for the rest of the year. There are still two more high-profile IPOs on the table, with Anthropic and OpenAI planning to go public. Many companies have reported strong performance and artificial intelligence (AI) is still driving high gains.
Image source: Getty Images.
However, investors shouldn’t become giddy and lose sight of the fact that the market is expensive. The more inflated it becomes, the more uncoupled it becomes (to borrow a phrase from Warren Buffett) from “the plodding performances of the businesses themselves.” Investors might think this time will be different as AI companies boast high growth and plush profits, but valuations still have to make sense.
If you’re worried about a market crash on the horizon, make sure you have some excellent dividend stocks to fortify your portfolio. Procter & Gamble (PG +0.50%) and Coca-Cola (KO 1.41%) are two great candidates.
1. Procter & Gamble
Procter & Gamble is a Dividend King, meaning the company has raised its dividend for at least 50 years, and it is one of only five companies that have raised their dividends for 70 years. That is an unparalleled track record that indicates rock-solid reliability and durability under almost any imaginable scenario, and that provides unmatched security for your portfolio.
The company owns many brands you likely use and at least recognize, including Pantene, Gillette, and Crest, that cover the gamut of household, beauty, and baby care. These are trusted names in categories that most people consider essential, providing resilience at all times.
Today’s Change
(0.50%) $0.75
Current Price
$150.36
Key Data Points
Market Cap
$350B
Day’s Range
$148.38 – $151.50
52wk Range
$137.62 – $167.25
Volume
188
Avg Vol
9.4M
Gross Margin
50.88%
Dividend Yield
2.83%
It also means that Procter & Gamble isn’t the fastest-growing, and as a stock, it serves a different purpose for investors. The company typically reports single-digit sales increases, and when it’s a high single digit, that’s impressive. In its favor, it has built up its brand names over decades of operation, which gives it pricing power. On the other hand, shoppers might switch down when there’s pressure.
In its most recent quarter, sales increased 7% year over year, and core earnings per share (EPS) rose from $1.54 to $1.59, which was a fine performance.
The dividend yields 2.9% at the current price, and investors can count on it under any conditions.
2. Coca-Cola
Coca-Cola is also a Dividend King, having raised its dividend for 64 years.
Many people know its namesake brand, which is ubiquitous on store shelves and in restaurants, but it actually owns about 200 brands, and still has a large market opportunity. It identifies only 20% of the world as developed countries, of which it has abut 14% of market share, and 80% of the world as underdeveloped, of which it has only 6%. These are areas that aren’t necessarily drinking carbonated beverages like Coke, but could be in the future.
Today’s Change
(-1.41%) $-1.16
Current Price
$80.93
Key Data Points
Market Cap
$348B
Day’s Range
$80.26 – $81.22
52wk Range
$65.35 – $84.04
Volume
5.3K
Avg Vol
15.2M
Gross Margin
61.82%
Dividend Yield
2.57%
Coca-Cola is a pure-play beverage company, and the largest in the world. It reported strong performance over the past few years, and its pricing power keeps loyal fans engaged despite the pressured environment, resulting in robust profits as well. In the 2026 first quarter, total revenue increased 12% year over year, while operating income was up 19%.
The company is a large, global giant with many moving parts, and it’s using AI to draft an accurate strategy that meets different beverage needs worldwide. The future still looks bright for the soft drink powerhouse.
It’s a rare Dividend King that’s beating the market right now, up 19% year to date, and the dividend yields 2.5% at the current price, providing gains and reliable passive income.
