Resilient Stocks Ready for Market Pullback

Bank of America has joined other finance giants in warning that the stock market looks stretched and due for a pullback. This prediction is not new, as JPMorgan Chase CEO Jamie Dimon framed the risks as tectonic plates shifting below the surface, which can lead to violent earthquakes. If you want to stay invested, it's time to focus on companies with resilient business models that will carry them through a market pullback.

Two such companies are Realty Income and Visa. Realty Income is a high-yield REIT with a portfolio of over 15,500 properties across North America and Europe. Its net lease agreements require tenants to pay for most property-level operating costs, keeping Realty Income's operating costs low and protecting it from inflation.

The company's resilience shows up in multiple areas, including its ability to maintain occupancy above 96% during the Great Recession. This has helped Realty Income increase its dividend annually for 31 consecutive years, with a current yield of 5.7%. On the other hand, Visa is a fee-driven financial services company that charges transaction fees every time a card with its brand is used.

Visa processed 71.7 billion transactions in the fiscal third quarter of 2026, a 10% year-over-year increase, with revenues coming in at $11.6 billion, up 14%. The growth of e-commerce has contributed to this trend, as people move away from cash and toward card-based payments. Since Visa only processes payments, it doesn't assume financial risk like credit card issuers do.