Market Volatility: 3 Stocks to Ride Out the Storm

With August's market volatility looming, investors are searching for reliable income streams to weather the storm. Three stocks stand out as 'forever compounders' that have consistently raised their dividends over decades: McDonald's (MCD), Johnson & Johnson (JNJ), and Realty Income (O).

McDonald's is one hike away from Dividend King status after 49 consecutive annual raises, with a dividend engine that has delivered strong results in Q1 2026. The company reported EPS of $2.83 against $2.74 expected, revenue of $6.52 billion (+9.4% year over year), and global comparable sales up 3.8%. CEO Chris Kempczinski noted, 'McDonald's delivered this quarter. Our 6% global systemwide sales growth shows how we executed with discipline.'

Johnson & Johnson has already logged 64 consecutive years of dividend increases, with a strong Q1 2026 performance that beat estimates. The company raised its quarterly payout to $1.34 and announced full-year guidance of revenue of $100.3 to $101.3 billion and adjusted EPS of $11.45 to $11.65. CEO Joaquin Duato framed the trajectory bluntly: 'Johnson & Johnson had a strong start to 2026 and is delivering on its promise for a year of accelerated growth and impact.'

Realty Income is the pure income play, with a 4.90% dividend yield that tops the 10-year Treasury. The company raised its monthly dividend to $0.271 per share, paid August 14, marking the 114th consecutive quarterly increase and the 670th consecutive monthly dividend.

These stocks have delivered strong results in Q1 2026, with McDonald's reporting EPS of $2.83 against $2.74 expected and Johnson & Johnson beating estimates on revenue and adjusted EPS. Realty Income's AFFO per share came in at $1.13, up 6.6% year over year.