3 Dividend-Paying Stocks Bucking the Market’s Trend

On Friday, a wave of selling pressure swept across the US equity markets, leaving a trail of losses. The S&P 500 closed down 1.7%, the DOW slid 1.69%, and the NASDAQ tumbled a staggering 2.2%. Nearly $1 trillion in market value evaporated in a single day. 

However, amid the turmoil, not all stocks succumbed to the downward pressure. In fact, a handful of reliable dividend-paying stocks, often seen as safe havens during periods of uncertainty, stood firm. Among the most notable were Coca-Cola, Johnson & Johnson, and McDonald’s,  all of which bucked the market's broader downtrend. Let’s look closer at why these dividend darlings are proving their resilience.

Surprise Revenue Jump Boosts Coca-Cola

Shares of Coca-Cola (NYSE: KO) are off to their best start in years, already up almost 15% year-to-date (YTD). This impressive rally has been fueled by a surprise beat in their latest earnings report and continued momentum afterward. Notably, KO’s stock had previously remained stagnant for much of the past year, trading within a tight range without any clear trend. Now, with growing investor optimism and increasing analyst confidence, Coca-Cola is capturing attention.

Coca-Cola announced its Q4 2024 earnings on February 11, 2025, reporting an EPS of $0.55,  exceeding consensus estimates of $0.51 by $0.04. Revenue surged to $11.54 billion, comfortably outpacing the expected $10.68 billion. Interestingly, while most of Coke’s organic revenue growth came from price increases, the company also experienced higher demand, a rare feat compared to competitors like PepsiCo.

With a 2.8% dividend yield and a consensus Buy rating from nineteen analysts, KO’s strong YTD performance and forecasted 3% additional upside make it a compelling pick for investors seeking both stability and growth.

Johnson & Johnson: A Top-Performing DOW Stock in 2025

Johnson & Johnson (NYSE: JNJ) has also emerged as a standout performer this year, with the healthcare giant climbing 12.2% YTD,  a striking outperformance relative to the broader market. Even on Friday, as most stocks plummeted, JNJ remained resilient, gaining almost 2% and bringing its monthly advance to 11.7%.

JNJ’s momentum kicked off after a solid earnings beat in January. The company announced its Q4 2024 earnings on January 22, 2025, posting an EPS of $2.04, surpassing analyst expectations of $1.99 by $0.05. Quarterly revenue rose 5.3% year-over-year to $22.52 billion, again exceeding the consensus estimate of $22.44 billion.

From a technical standpoint, JNJ’s sharp bounce,  now almost 16% off its 52-week lows, has impressed investors. A potential second-leg higher could unfold if the stock can consolidate near its $165 resistance level. With a 3.06% dividend yield and a Moderate Buy rating from analysts predicting a 5.1% upside, JNJ remains a defensive yet promising play.

McDonald’s Holds Strong Near 52-Week Highs

Lastly, McDonald’s (NYSE: MCD) has outperformed the market with a 5.15% YTD return. Unlike KO and JNJ, McDonald’s didn't blow past estimates during its recent earnings report, but its strength has remained evident.

MCD, which has a 2.2% dividend yield, released its Q4 2024 earnings on February 10, 2025, reporting an EPS of $2.83,  in line with consensus estimates. Revenue came in at $6.38 billion, also largely matching expectations. While these results were not extraordinary, shares gained momentum after comparable sales topped average analyst estimates in Q4, driven by strong performance in international markets, particularly the Middle East and Japan.

From a technical perspective, MCD’s resilience stands out. The stock is hovering near its 52-week highs and appears poised for a breakout and upward momentum if it can breach the $310 resistance. 

Companies Mentioned in This Article: