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. A bear market is a sustained period where prices in the stock market fall by 20% or more from their recent peak. Bear markets are characterized by widespread investor pessimism, market volatility, and often, a decline in economic activity.
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.
Best bear market stocks to buy in 2025
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Enterprise Products Partners (NYSE:EPD) | $65.4 billion | 7.15% | Oil, Gas and Consumable Fuels |
| Mondelez International (NASDAQ:MDLZ) | $72.4 billion | 3.41% | Food Products |
| Coca-Cola (NYSE:KO) | $295.3 billion | 2.93% | Beverages |
| CVS Health (NYSE:CVS) | $99.1 billion | 3.41% | Healthcare Providers and Services |
| Walmart (NYSE:WMT) | $815.4 billion | 0.89% | Food and Staples Retailing |
| AbbVie (NYSE:ABBV) | $381.4 billion | 3.04% | Biotechnology |
| Johnson & Johnson (NYSE:JNJ) | $450.2 billion | 2.72% | Pharmaceuticals |
| T-Mobile US (NASDAQ:TMUS) | $230.7 billion | 1.71% | Wireless Telecommunication Services |
1. Enterprise Products Partners
NYSE: EPD
Key Data Points
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 +0.66%) appeals to investors for its attractive dividend yield -- currently sitting at around 7%.
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 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 is something to consider.
2. Mondelez International
NASDAQ: MDLZ
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3. The Coca-Cola Company
NYSE: KO
Key Data Points
4. CVS Health Corporation
NYSE: CVS
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5. Walmart Corporation
NYSE: WMT
Key Data Points
6. AbbVie
NYSE: ABBV
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7. Johnson & Johnson
NYSE: JNJ
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8. T-Mobile US
NASDAQ: TMUS
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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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The bottom line on bear market stocks
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 end up buying, 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 you put in your portfolio and proceed through to the next bear market with confidence.
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