Amid heightened volatility in the stock market, investors sought shelter in defensive stocks on Tuesday.
By the close of trading, Walmart (WMT +0.62%), Verizon (VZ +1.56%), and Altria (MO +0.69%) all saw their stock prices rise by roughly 3%.
These dividend stocks can put more cash in your pocket. Image source: Getty Images.
Defense wins championships
Before you can grow your wealth, you must first protect it. That was the theme of the day in the financial markets.
The Nasdaq Composite Index fell 1.4%, as many tech stocks sold off. Investors' risk appetites are shrinking as concerns about a possible bubble in artificial intelligence (AI) stocks multiply.
Meanwhile, gold and silver prices have swung violently in recent days. Many people who are seeking stable stores of value to help them preserve their wealth are thus beginning to turn their attention elsewhere.
These factors are combining to drive risk-conscious investors to seek out less volatile assets. Enter the defensive dividend stock. These reliable income generators continue to crank out cash in challenging market environments, thereby helping their shareholders sleep better at night while adding ballast to their portfolios.
3 top dividend stocks
Walmart saw its market capitalization climb above $1 trillion for the first time on Tuesday. Shoppers are flocking to the discount retail giant's stores and e-commerce sites in search of bargain-priced food and household essentials.
Verizon is winning back wireless and fiber internet customers under new CEO Dan Schulman. The telecom titan expects its free cash flow to grow by about 7% to over $21 billion in 2026, fueled by up to 1 million new retail postpaid phone subscribers.
Altria is perhaps facing the biggest challenges of this group of dividend dynamos, as smoking rates in the U.S. steadily decline. But the tobacco king still paid $7 billion in dividends to its shareholders in 2025, and it projects its adjusted earnings per share will grow as much as 5.5% in 2026.
