Six companies—Berkshire Hathaway, Coca-Cola, Duke Energy, Johnson & Johnson, Realty Income and WM—are being highlighted for historically resilient performance during market downturns as concerns grow over valuations, inflation and interest rates.
All six stocks outperformed the S&P 500 during the 2022 bear market, with several finishing that year higher. Their common features include recurring or essential demand, substantial cash generation, durable balance sheets and long records of returning money to shareholders.
Coca-Cola has raised its dividend for 64 consecutive years, supported by brands including Coke, Dasani, Powerade and Gold Peak.
Duke Energy operates regulated electric and natural-gas businesses and is pursuing a $103 billion capital program through 2030, which is expected to support annual earnings-per-share growth of 5% to 7%. Johnson & Johnson, one of only two companies with a AAA credit rating, has also increased its dividend for 64 consecutive years and uses its cash flow for research, development and acquisitions.
Realty Income’s portfolio spans retail, industrial, gaming and data-center properties leased under long-term net agreements. The real-estate investment trust has outperformed the S&P 500 in 11 of the 13 market corrections of at least 10% since its 1994 listing and has increased its dividend for more than 30 years.
WM benefits from recurring demand for waste collection, recycling, medical-waste handling and secure document destruction. Its dividend has risen for 23 straight years, and its stock has historically been about half as volatile as the S&P 500. The record of these companies points to relative resilience, but it does not eliminate the possibility of losses if broader market declines intensify.