Is it good to buy stocks in a bear market?

For long-term investors, buying stocks in a bear market can be a strategic opportunity to acquire quality assets at lower prices.

What to avoid in a bear market?

In a bear market, you shouldn't rush to sell off all your investments, but you also shouldn't invest all your cash at once or chase short-term trends. Instead, focus on maintaining discipline, diversifying your portfolio, and using strategies like dollar-cost averaging to invest over time.

How long do bear markets usually last?

Bear markets usually last less than a year. However, they can vary widely in duration and intensity.

What investments are safe during a bear market?

While no investment is entirely devoid of risk, some can provide a financial hedge during times of market turbulence that may be well worth adding to your portfolio. Defensive stocks like consumer staples and utilities, healthcare stocks, blue chip stocks, and dividend-paying stocks are a few examples of stable options that could be attractive anchors in your portfolio alongside a diversified basket of investments.

What is the longest bear market in history?

The 1929-32 bear market, which coincided with the Great Depression, was the most devastating in U.S. history and resulted in the Dow Jones Industrial Average losing almost 90% of its value. This was the peak of a period of economic uncertainty, excessive speculation, and debt that plunged the global economy into a prolonged slump. It took more than 20 years for the Dow index to recover to its pre-crash high in 1954. The S&P 500's predecessor index, the Composite Stock Index, lost approximately 83% of its value from its peak in August 1929 to its low in June 1932. Some analysts cite the 61 months from 1937 to 1942 as the longest bear market on record, but many argue that this period reflected multiple bear markets separated by market rallies. For instance, a breakdown of the S&P 500's performance shows four distinct bear markets within the broader 1937 to 1942 window, each with its own peak, trough, and recovery. It's worth noting that this five-year period included a 60% market drop and was influenced by a recession and the outbreak of World War II.

Do bear markets and recessions go hand in hand?

Bear markets and recessions often go hand in hand, but they are not the same thing and do not always coincide. The stock market may react to economic signals, but it is wholly separate from the actual economy. While bear markets are often caused by or predict recessions, about one-third of bear markets have occurred without a recession at all.

8 Best Bear Market Stocks to Buy in 2026

By Rachel Warren – Updated Sep 21, 2026 at 11:00 PM EST | Fact-checked by Frank Bass

Key Points

Invest in stable dividend-yielding stocks like Enterprise Products Partners during bear markets.
Consumer staples like Mondelez offer consistent cash flow, crucial in recession periods.
Diversified portfolios with firms like Coca-Cola help buffer against bear market impacts.

Investing in a bear market can be a bit frightening. But it's also necessary to learn how to invest across different market environments -- especially when the broader economic landscape is beyond your control. A bear market occurs when stock prices fall by 20% or more from their recent peak.

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

Investors might also consider stocks with a competitive advantage or that offer a lower-cost alternative to pricier service offerings in the space. Here, we'll offer some guidance about potential stocks to buy in the midst of a bear market.

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Top bear market stocks to consider

Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield	Industry
Enterprise Products Partners (NYSE:EPD)	$77.8 billion	6.12%	Oil, Gas and Consumable Fuels
Mondelez International (NASDAQ:MDLZ)	$78.5 billion	3.28%	Food Products
Coca-Cola (NYSE:KO)	$387.7 billion	2.33%	Beverages
CVS Health (NYSE:CVS)	$112.0 billion	3.04%	Healthcare Providers and Services
Walmart (NASDAQ:WMT)	$890.8 billion	0.87%	Food and Staples Retailing
AbbVie (NYSE:ABBV)	$484.8 billion	2.49%	Biotechnology
Johnson & Johnson (NYSE:JNJ)	$599.1 billion	2.12%	Pharmaceuticals
T-Mobile US (NASDAQ:TMUS)	$164.9 billion	2.65%	Wireless Telecommunication Services

Data as of Oct 14, 2026. Showing 8 of 8 total entries.

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1. Enterprise Products Partners

NYSE: EPD

Enterprise Products Partners

Premium Feature

Moneyball Superscore

73/100

Today's Change

(0.36%) $0.13

Current Price

$36.04

Key Data Points

Market Cap

$78B

Day's Range

$35.79 - $36.10

52wk Range

$30.01 - $40.16

Volume

Avg Vol

3.1M

Gross Margin

12.98%

Dividend Yield

6.12%

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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 +0.36%) appeals to investors for its attractive dividend yield -- sitting at around 5.8% right now.

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 28 years. Oil and natural gas tend to perform well even when certain sectors of the economy may be struggling, since demand for these commodities remains during economic downturns.

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

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2. Mondelez International

NASDAQ: MDLZ

Mondelez International

Premium Feature

Moneyball Superscore

65/100

Today's Change

(-0.47%) $-0.29

Current Price

$61.50

Key Data Points

Market Cap

$78B

Day's Range

$61.22 - $62.38

52wk Range

$51.20 - $66.65

Volume

482.8

Avg Vol

8.2M

Gross Margin

35.01%

Dividend Yield

3.28%

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Mondelez International (MDLZ -0.47%) is considered one of the world's leading snack companies and part of the consumer staples sector. When a recession looms, people still purchase food at a similar clip and discount foods at an even higher rate. Steady demand for consumer staples tends to make large food producers attractive -- even as discretionary spending is falling in other sectors.

Another common reason people look to stocks like Mondelez is its attractive dividend and cash flow profile. Recessions usually come with bear markets in broad stock indexes; holding stocks with stable (and even rising) dividend yields can make sense for investors who don't have long time horizons.

Mondelez pays a stable dividend that yields around 3.4%.

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3. The Coca-Cola Company

NYSE: KO

Coca-Cola

Premium Feature

Moneyball Superscore

78/100

Today's Change

(0.36%) $0.32

Current Price

$90.11

Key Data Points

Market Cap

$388B

Day's Range

$89.67 - $90.56

52wk Range

$66.92 - $92.49

Volume

12.7K

Avg Vol

15.9M

Gross Margin

61.95%

Dividend Yield

2.33%

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It's difficult to walk outside without seeing a sign for a Coca-Cola product. The Coca-Cola Company (KO +0.36%) is another consumer staples favorite that tends to remain stable or do well in times of economic distress.

The company's dividend yields just around 2.4%. 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.

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4. CVS Health Corporation

NYSE: CVS

CVS Health

Premium Feature

Moneyball Superscore

61/100

Today's Change

(-0.22%) $-0.19

Current Price

$87.55

Key Data Points

Market Cap

$112B

Day's Range

$86.13 - $89.89

52wk Range

$69.51 - $110.68

Volume

Avg Vol

8.1M

Gross Margin

14.16%

Dividend Yield

3.04%

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When the economy goes south, people still need medications, basic consumer goods, and access to local, reasonably priced medical care. CVS Health Corporation (CVS -0.22%) serves as a one-stop hub for people in local communities and may even reduce the need for primary care visits through its Minute Clinics.

Recently, increased Medicare utilization and rising healthcare costs have affected CVS's revenue and earnings growth, although the company remains profitable.

The company pays a dividend with a yield of around 3%.

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5. Walmart Corporation

NASDAQ: WMT

Walmart

Today's Change

(-0.71%) $-0.80

Current Price

$112.28

Key Data Points

Market Cap

$891B

Day's Range

$112.21 - $114.83

52wk Range

$98.88 - $135.16

Volume

16.3K

Avg Vol

23.5M

Gross Margin

25.23%

Dividend Yield

0.87%

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Walmart Corporation (WMT -0.71%) pays a modest dividend yielding a little less than 1%, but the stock delivered a total return of around 125% over 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's a convenient, cost-effective one-stop shop for weathering tough 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.

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6. AbbVie

NYSE: ABBV

AbbVie

Premium Feature

Moneyball Superscore

79/100

Today's Change

(-2.40%) $-6.76

Current Price

$274.36

Key Data Points

Market Cap

$485B

Day's Range

$273.70 - $283.43

52wk Range

$190.75 - $283.43

Volume

424.1

Avg Vol

4.9M

Gross Margin

71.42%

Dividend Yield

2.49%

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As one of the largest pharmaceutical companies in the world and a consistent dividend-payer, AbbVie (ABBV -2.40%) is more than a worthy hold during a bear market. Boasting a 2.6% forward dividend yield, AbbVie is a compelling pick for a diversified portfolio holding during a bear market.

Despite the negative social effects, healthcare companies have performed well as a group during prior bear markets. An aging population, combined with a steady demand for healthcare, pharmaceuticals, and related services, only points to further growth for one of the industry giants.

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7. Johnson & Johnson

NYSE: JNJ

Johnson & Johnson

Premium Feature

Moneyball Superscore

80/100

Today's Change

(-5.73%) $-15.12

Current Price

$248.61

Key Data Points

Market Cap

$599B

Day's Range

$245.17 - $256.18

52wk Range

$184.66 - $281.07

Volume

4.2K

Avg Vol

7.2M

Gross Margin

74.91%

Dividend Yield

2.12%

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Another Dividend King, Johnson & Johnson (JNJ -5.73%), stands as one of the most reliable income stocks you can own. The company has raised its dividend for more than 60 years and has shown strong revenue growth and profitability.

Johnson & Johnson is an established healthcare giant with blockbuster drugs spanning immunology to oncology, as well as a booming medical device segment.

As an investor, you can expect a dividend yield in the 2% range. Note that while the dividend is stable and growing, the stock's price return will vary greatly from one year to the next.

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8. T-Mobile US

NASDAQ: TMUS

T-Mobile US

Premium Feature

Moneyball Superscore

78/100

Today's Change

(1.23%) $1.86

Current Price

$153.73

Key Data Points

Market Cap

$165B

Day's Range

$151.80 - $154.75

52wk Range

$147.90 - $230.54

Volume

344.7

Avg Vol

Gross Margin

46.59%

Dividend Yield

2.65%

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T-Mobile US (TMUS +1.23%) shouldn't be ignored as a potential recession-resistant stock. T-Mobile is not only the second-largest wireless provider in the country since its merger with Sprint, but its customer base tends to have a slightly lower credit quality than its competitors.

In a bear market, you might see previously high-income earners considering lower-priced wireless options. This means T-Mobile stands to benefit from increased consumer price sensitivity.

In December 2023, the company initiated a quarterly dividend for the first time in company history. T-Mobile increased its quarterly dividend by 16% in September 2025. The stock yields around 2.5%.

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How to invest in bear market stocks

If you want to invest in any of the bear market stocks discussed here today, you can do so through your chosen brokerage account. Here are the key investing steps to know:

Open your brokerage app: Log in to your brokerage account where you handle your investments.
Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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What should you do during a bear market?

It's important to remember that bear markets are a normal part of the investing cycle. If you're investing for decades, you'll probably encounter your fair share of bear markets in that time frame.

The most critical thing is to stay calm and avoid panic selling. Selling during a downturn locks in temporary paper losses, making them permanent financial losses in your portfolio. This could also mean you miss out on the market's strongest recovery days.

If you have the capital on hand, continue investing a fixed amount at regular intervals. This allows you to buy more shares of quality businesses when prices are low and effectively slash your average cost basis over time.

If you don't have extra capital to put to work, it's perfectly acceptable to do nothing and wait out the bear market period until you're ready to put cash into more stocks. Remember, you should only be investing cash that you won't need for at least three to five years, and this should be separate from the money you use for regular financial obligations like bills, rent, etc.

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The bottom line

Again, investing in a bear market isn't meant to be easy. But it's also one of the best ways to invest to build long-term wealth. Staying the course with stable, income-friendly stocks is a way to achieve a seven-figure net worth -- if you do it long enough.

No matter which stocks you buy, be sure to maintain a diversified portfolio at all times. Don't put all your eggs in one basket. We can never really know what's coming next, so it's best to cover all your bases to the extent possible.

Take the time to properly evaluate every stock in your portfolio and proceed into the next bear market with confidence.

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Investing in Bear Market Stocks FAQ

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About the Author

Rachel Warren is a contributing Motley Fool stock market analyst covering pharmaceuticals, biotechnology, medical devices, information technology, and consumer goods. Prior to The Motley Fool, Rachel was a paralegal and legal administrator. She holds a bachelor’s degree in paralegal studies from Liberty University School of Law.

TMFRachelW

Rachel Warren has positions in AbbVie and Johnson & Johnson. The Motley Fool has positions in and recommends AbbVie and Walmart. The Motley Fool recommends CVS Health, Enterprise Products Partners, Johnson & Johnson, and T-Mobile US. The Motley Fool has a disclosure policy.

8 Best Bear Market Stocks to Buy in 2026

Key Points

Top bear market stocks to consider

1. Enterprise Products Partners

Key Data Points

2. Mondelez International

Key Data Points

3. The Coca-Cola Company

Key Data Points

4. CVS Health Corporation

Key Data Points

5. Walmart Corporation

Key Data Points

6. AbbVie

Key Data Points

7. Johnson & Johnson

Key Data Points

8. T-Mobile US

Key Data Points

How to invest in bear market stocks

What should you do during a bear market?

The bottom line

Related investing topics

Bull vs. Bear Market: What's the Difference?

What Are the 11 Stock Market Sectors?

Can You Buy a Stock and Sell It in the Same Day?

Average Stock Market Return

Investing in Bear Market Stocks FAQ

Is it good to buy stocks in a bear market?

Is it good to buy stocks in a bear market?

What to avoid in a bear market?

What to avoid in a bear market?

How long do bear markets usually last?

How long do bear markets usually last?

What investments are safe during a bear market?

What investments are safe during a bear market?

What is the longest bear market in history?

What is the longest bear market in history?

Do bear markets and recessions go hand in hand?

Do bear markets and recessions go hand in hand?

About the Author

Read Next

Stocks Mentioned

Motley Fool Stock Advisor’s Latest Pick

Premium Investing Services

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

How to invest in bear market stocks

What should you do during a bear market?

The bottom line

Bull vs. Bear Market: What's the Difference?

What Are the 11 Stock Market Sectors?

Can You Buy a Stock and Sell It in the Same Day?

Average Stock Market Return

Investing in Bear Market Stocks FAQ

Is it good to buy stocks in a bear market?

Is it good to buy stocks in a bear market?

What to avoid in a bear market?

What to avoid in a bear market?

How long do bear markets usually last?

How long do bear markets usually last?

What investments are safe during a bear market?

What investments are safe during a bear market?

What is the longest bear market in history?

What is the longest bear market in history?

Do bear markets and recessions go hand in hand?

Do bear markets and recessions go hand in hand?

Key Data Points

Key Data Points