Early-stage companies, growth stocks, and cryptocurrencies can outperform when the markets rise, but they often fall further and faster when the market's momentum shifts in the opposite direction. The U.S. stock market has tumbled in 2025, and investors have turned away from riskier assets amid heightened volatility and uncertainty.
While market downturns have historically been excellent buying opportunities, there's no telling how low prices can go. Times like these are when boring, dividend-paying stocks often shine their brightest.
Investors are flocking to these three safe-haven stocks. All three have outperformed the S&P 500 in 2025, typically withstand volatility well, and pay generous dividends that offer firm returns without having to sell any shares.
1. Dialing up a 4.1% yield with this U.S. telecom giant
AT&T (T 0.39%) is one of three primary wireless network carriers in the U.S. The company served 72.7 million post-paid phone subscribers and 9.3 million fiber optic broadband customers at the end of 2024. Communications aren't technically considered a utility business, but for all intents and purposes, people pay their phone bills because smartphones have become too important for most people to go without.
NYSE: T
Key Data Points
The recession-proof nature of AT&T has made it a dependable stock with a beta of just 0.42. That means that AT&T will see less market-driven volatility during any downturn. Investors can also count on AT&T's dividend as it represents only half of the company's earnings-per-share estimate for 2025 and yields 4.1% as of this writing. AT&T is no longer a bargain after its strong rally over the past year, but it remains a solid choice for those seeking stability and income in this market.
2. A classic consumer staple during tough times
Philip Morris International (PM 0.50%) is the world's largest tobacco company with products sold in 180 non-U.S. countries. Beyond its iconic Marlboro brand, the company offers other cigarette brands, smoke-free nicotine products (iQOS and Veev), and Zyn oral nicotine pouches. Tobacco companies and other sin stocks are classic safe-haven investments because they tend to hold up well during economic downturns. Philip Morris stock's beta is just 0.44.
NYSE: PM
Key Data Points
The company has paid and raised its dividend annually since spinning off from Altria Group in 2008. It currently offers a dividend yield of 3.2% following a surge in its share price over the past year. While cigarette use is slowly declining worldwide, Philip Morris has laid the foundation for long-term growth with its smoke-free products. Zyn and iQOS have been immensely successful, and smoke-free products now account for 40% of total sales. That number should continue to rise.
3. Buying and holding this classic Warren Buffett stock is always a good idea
The Coca-Cola Company (KO 0.91%) is a blue-chip dividend stock that seemingly never goes out of style. The beverage conglomerate sells countless brands worldwide with a portfolio of sodas, water, juices, teas, coffee, and sports drinks. It is also a famous Warren Buffett stock. The famous investor has held shares via his holding company, Berkshire Hathaway, for decades. Coca-Cola's business model is simple: Use its ultra-valuable brands to create demand for its beverages. That strategy has made Coca-Cola a Dividend King, boasting over six decades of uninterrupted dividend hikes.
NYSE: KO
Key Data Points
The company's brand power and stellar track record continually attract investors. Coca-Cola's beta is also low at 0.45. Meanwhile, the dividend yields 2.8% today, and investors can feel confident their quarterly payout will continue to increase over time. The stock's dividend payout ratio is a manageable 69% of 2025 earnings estimates, and the company can pull multiple levers to drive steady, long-term growth. Coca-Cola is a stock you can find shelter in during tough times, but don't shy away from holding it as a portfolio cornerstone.
