5 Stocks to Ride Out Market Volatility

The S&P 500 has seen three consecutive years of gains, but valuations are now relatively high and concerns about AI spending and rising inflation are brewing. To navigate uncertain market times, investors should consider adding resilient stocks to their portfolios.

These companies have essential products or services that will continue to generate revenue regardless of the market's performance. One such stock is Johnson & Johnson (JNJ), which has 28 products generating over $1 billion in annual revenue and a long history of dividend payments.

Another strong candidate is Vertex Pharmaceuticals (VRTX), which dominates the cystic fibrosis treatment market with intellectual property until the late 2030s. The company has also made significant strides in other areas, such as pain management and gene editing treatments for blood disorders.

Costco (COST) is another attractive option, offering low prices on essentials like groceries and gas, along with a high membership renewal rate. This provides investors with visibility into future sales and dividend payments.

Coca-Cola (KO) is also well-positioned to weather economic downturns due to its broad range of non-alcoholic beverages and adaptability in creating market-specific products. The company has a long history of dividend growth and strong free cash flow.

American Express (AXP) rounds out the list, with its affluent customer base making it less sensitive to economic shifts. The company continues to attract younger populations and offers dividend growth.