In the event of a stock market crash, Coca-Cola, Procter & Gamble, and Waste Management are three dividend stocks that investors might consider buying. These companies have durable businesses that generate substantial cash flow even in challenging economic conditions. Coca-Cola, Procter & Gamble, and Waste Management have long histories of increasing their dividends, but their current valuations make them less attractive for investment.
Coca-Cola is a strong consumer brand with steady earnings growth. The company's revenue grew 7% in the third quarter, driven by volume growth and pricing power. Coca-Cola has increased its dividend for 64 consecutive years, making it a Dividend King. However, at its recent price of around $98 per share, the stock trades at nearly 30x earnings, which is a premium compared to the S&P 500 and Nasdaq-100. Investors might find Coca-Cola more appealing if its share price drops below $80.
Procter & Gamble owns essential consumer brands that people continue to purchase regardless of economic conditions. The company's net sales rose 4% in its fiscal 2027 first quarter, but core earnings per share only increased 1%. Procter & Gamble has increased its dividend for 70 years. At its recent share price of around $170, the stock trades at about 24x earnings. Investors might prefer to buy Procter & Gamble around $145 to achieve more attractive long-term returns.
Waste Management provides essential services that are needed regardless of the economy. The company's revenue was up 6.3% in the third quarter, driven by rising prices and volumes. Waste Management has increased its dividend for 23 consecutive years. At its recent price of around $245 per share, the stock trades at around 28x earnings. Investors might consider buying more shares if Waste Management falls to $200, which would put its dividend yield closer to 2%.