The S&P 500 fell more than 10% in three trading sessions after President Donald Trump announced the “Liberation Day” tariffs in April 2025. By the time the sell-off eased, the index had dropped nearly 19% from its February peak, bringing it close to a technical bear market. After Trump announced a 90-day pause in the tariffs, markets rebounded sharply a week later and recovered almost all of the losses within a month.
The episode underscored how quickly market conditions can change. For investors assessing companies during periods of stress, the focus often shifts to the resilience of the underlying business rather than the predictability of the next market move.
Walmart, Realty Income, PepsiCo and Verizon operate in everyday retail, commercial real estate, food and beverages, and communications services. Their businesses benefit from relatively steady demand, long records of dividend growth or some ability to pass through higher costs. That resilience does not prevent their share prices from falling, however. Valuations, competition, interest rates and company-specific factors can still drive performance.
Walmart: Scale and demand for essentials
Walmart operates more than 10,900 stores across 19 countries and generates annual sales of about $713 billion. Its large procurement and retail network strengthens its negotiating position with suppliers and supports its longstanding low-price strategy. Groceries, household products and other necessities make up a significant part of its business. When household budgets come under pressure, consumers may shift toward lower-priced retailers, potentially supporting Walmart’s sales.
The company has raised its dividend for 53 consecutive years, exceeding the 50-year annual increase required for “Dividend King” status. The record spans multiple economic cycles and reflects Walmart’s ability to sustain earnings and shareholder distributions over the long term.
By the end of April 2025, the S&P 500 was down more than 5% for the year, while Walmart’s share price had risen more than 7% over the same period. That performance showed relative resilience during that phase of market volatility, although a single period does not establish how the stock will perform in future sell-offs.
Realty Income: Long leases support monthly dividends
Realty Income is a large real estate investment trust, or REIT, with properties spanning retail, industrial facilities, gaming venues and data centers. It leases many of those properties to businesses under long-term net leases. Walmart is among its tenants and accounted for 0.9% of Realty Income’s annualized base rent.
Many of the company’s tenants operate in industries that are comparatively less sensitive to economic downturns. Lease agreements also commonly include annual rent increases, with some adjustments set at fixed rates and others linked to inflation.
Rental income supports Realty Income’s monthly dividend. Since its public listing in 1994, the company has increased its dividend 136 times, extending its dividend-growth record beyond 31 years. Its access to financing also enables it to invest billions of dollars each year in additional income-producing real estate.
Historical drawdowns provide another measure of the stock’s behavior during market stress. Since its listing, Realty Income has outperformed the S&P 500 in 11 of the 13 market corrections in which the index fell by at least 10%. During those corrections, the company’s share price declined by an average of 2.6%, compared with an average 22.6% decline for the S&P 500. Those figures describe past performance and do not determine the size or direction of future declines.
PepsiCo: Brands and pricing power
PepsiCo operates across beverages and snacks, generating roughly $95 billion in annual revenue. Its brands include Pepsi, Mountain Dew, Quaker and Doritos. The company is currently dealing with pressure on demand and costs, but it still expects low-single-digit growth in organic revenue and earnings per share for the year. The combination of volume growth and price increases points to a degree of pricing power.
In 2026, PepsiCo is expected to extend its streak of consecutive dividend increases to 54 years. The company has a solid balance sheet and generates substantial, steadily growing free cash flow. Even while facing operating pressure, it plans to raise its dividend by 4% in 2026.
PepsiCo’s share price has historically been less volatile than the S&P 500. Its three-year beta is below 0.5, compared with 1.0 for the index. Based on that historical relationship, a 10% decline in the S&P 500 would typically correspond to an approximately 5% decline in PepsiCo’s shares. Beta measures past volatility relative to the market; it is not a forecast of future returns.
Verizon: Recurring communications revenue, high yield and competition
Verizon provides wireless communications and broadband services. These businesses generate relatively recurring revenue because mobile connectivity and internet access have become routine expenses for most consumers. Customers can switch providers more easily than in the past, but Verizon’s network quality and scale continue to support customer retention.
Verizon has increased its dividend for 20 consecutive years. After completing network expansion investments, the company continues to generate enough free cash flow to cover its dividend, while also retaining funds for share repurchases and balance-sheet management.
Verizon’s dividend yield is close to 7%. That relatively high yield reflects the company’s slower growth and the intense competition in telecommunications, so the payout cannot be assessed without considering the operating risks. During volatile markets, dividends can form part of an investor’s return, but both the share price and the distribution remain dependent on the company’s operating performance and financial condition.