8 Best Bear Market Stocks to Invest In

Investing in a bear market can be a bit frightening. But it's also necessary to learn how to invest in different market environments -- especially when the broader economic landscape is out of your control.

When markets fall, many investors run to income-producing assets, stocks included. This means looking for different stocks with a stable cash flow, a history of paying consistent dividends, and participation in "staple" industries.

Investors might also consider stocks that have a competitive advantage or present a lower-cost alternative to some of the pricier service offerings in the space.

Here, we'll offer some guidance about potential stocks to buy in the midst of a bear market.

In difficult times for the wider economy, investors look to income-producing stocks to bolster their cash flow and, ideally, smooth out their portfolio returns. As one of the leaders in the oil and natural gas pipeline space, Enterprise Products Partners (EPD +0.91%) appeals to investors for its attractive dividend yield -- currently sitting at 6.6%.

Enterprise Products Partners is a master limited partnership (MLP) known for distributing cash to its investors. What's more, Enterprise has increased its payout to investors every year for about 25 years. Oil and natural gas tend to perform well even when certain sectors across the economy may be struggling since demand for these commodities remains even during an economic downturn.

Note that when you hold MLPs in your portfolio, tax preparation is more difficult. Instead of receiving standard tax forms, you'll receive a K-1 form outlining any distributions paid out to you during the year. Although the paperwork isn't a dealbreaker for most people, it is something to consider.

2. Mondelez International

3. The Coca-Cola Company

It's difficult to walk outside and not see a sign for a Coca-Cola product. The Coca-Cola Company (KO -0.58%) is another consumer staples favorite that tends to remain stable or do well in times of economic distress.

Over the last few years, the stock has remained steady around the $60 to $70 per share mark, shielding investors from an ugly experience for the broader indexes. At the same time, the company's dividend yields just around 3%, providing cash flow to potentially anxious investors.

Coca-Cola is one of the Dividend Kings, a group of companies that have grown their respective dividends in each of the past 50 or more years. It's no surprise that Coca-Cola stock might be appealing during difficult economic times to keep investors afloat.

4. CVS Health Corporation

When the economy goes south, people still need medications, basic consumer goods, and access to local, reasonably priced medical care. CVS Health Corporation (CVS -1.24%) acts as a one-stop hub for people in local communities and may even reduce primary care visits with their urgent care Minute Clinics.

Recently, an increase in Medicare utilization and rising healthcare costs post-pandemic have affected CVS' revenue and earnings growth, although the company is still profitable. The company pays a dividend with a yield topping 4.2%, which has risen as the stock's price has fallen.

Economic stress tends to make discount and big-box stores appealing for those who previously traded up during the 2010s expansion. Walmart Corporation (WMT +0.87%) pays a modest dividend that yields a little around 1%, but the stock has delivered a total return of approximately more than 100% in the trailing five-year period.

It's been said before that Walmart is "recession-proof" because it tends to see greater sales when people have less money overall and less money for discretionary spending. Since you can buy almost anything at Walmart, it makes for a convenient and cost-effective one-stop shop for weathering unfortunate economic times.

If you look at Walmart's revenue growth and its dividend payout taken together, there is a lot to like about the stock if you think we're heading into bear market territory.

6. AbbVie

7. Johnson & Johnson

8. T-Mobile US