The market's reaction to the current unrest in the Middle East has affected large swaths of the market, hurting many stocks. It's important in times like these to focus on high-quality, low-volatility companies because they are better equipped to weather market downturns and bounce back more quickly when markets rebound.
Two companies worth looking at in the current situation are Enbridge (ENB +0.19%) and Verizon Communications (VZ 0.49%). Both stocks are up over the past year and over the past month, unlike many of their peers. Here's why they are good stocks to hold on to in a market downturn.
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They're both large-cap stocks with low volatility
Canadian midstream operator Enbridge's pipelines transport around 30% of the crude oil and 20% of the natural gas used in the United States, while telecommunications giant Verizon has more than 146 million retail wireless connections and more than 16 million fixed wireless access and fiber broadband connections in the U.S.
The companies have huge market caps, roughly $211 billion for Verizon and $117 billion for Enbridge. That size alone gives them a certain amount of stability, because it takes a lot for their shares to move significantly in either direction. Their shares are also inherently stable, with three-year betas well below average.
Over the past 52 months, Verizon's shares have run between $38.39 and $51.67 and Enbridge has had a similarly small spread, between $39.73 and $54.70.
NYSE: ENB
Key Data Points
They have above-average dividends that allow you to be patient
Even when their shares fall, both companies have steadily increased their dividends, delivering solid total returns and making it easier for investors to think in the long term, since they're generating income from dividends in the short term.
Both companies' dividends yield around 5%, topping the S&P 500 average dividend yield by a considerable amount. It's also better than the 4.26% yield for 10-year U.S. Treasury Securities.
Verizon raised its dividend by 2.5% this year, the 20th consecutive year it has increased its dividend. Enbridge just increased its dividend by 3%, marking its 31st consecutive year of increases.
NYSE: VZ
Key Data Points
Each is coming off a strong year
Enbridge reported yearly earnings per share (EPS) of $3.23, up 38%, and distributable cash flow of $12.5 billion, up 3.8%. Unlike exploration and production companies and refining or downstream players, Enbridge's pipeline business model, built on long-term contracts that charge to use its pipeline, is not highly exposed to volatility in oil and natural gas prices, so the current high oil prices don't affect it much, allowing it to generate stable cash flows for shareholders.
Verizon reported $138.2 billion in 2025 revenue, up 2.5%, and EPS of $4.06, down 2%, thanks largely to the one-time costs for severance packages for the 13,000 jobs it is eliminating. The company, despite having a large vehicle fleet, has low sensitivity to rising fuel prices. Its massive scale allows it to mitigate those costs, and it also generates revenue through software packages that help other employers better manage their fuel costs.
