The S&P 500 fell nearly 19% from its February 2025 peak during a tariff-driven sell-off. Four companies have long dividend records, but their shares can still drop.
The April 2025 sell-off erased more than 10% from the S&P 500 in three days after President Trump announced his "Liberation Day" tariffs. On April 4, after China announced a 34% tariff on all U.S. imports, the index fell about 6%. By April 8, its drop from the April 2 close had reached 12.1%, according to the Associated Press's account of the tariff retaliation.
Then came a sharp reversal. On April 9, the administration announced a 90-day pause for most new tariffs, reducing them to a 10% baseline while confirming a 145% rate on Chinese imports. The S&P 500 rose about 9.5% that day, its largest one-day gain since October 2008, according to a CBS market-day report.
That swing shows how quickly a dividend record can be overshadowed by market losses. Walmart, PepsiCo, Realty Income and Verizon have long histories of dividend increases, with businesses tied to recurring demand. Their shares still face broad market pressure and company-specific risks.
The S&P 500's closing low during the April 2025 tariff sell-off was 4,982.77 on April 8, about 19% below its February peak.
What a dividend record can show
Walmart and PepsiCo have each raised annual dividends for more than 50 years. Verizon has increased its dividend for 20 straight years, while Realty Income has raised its payout more than 31 consecutive years. Those records span difficult economic periods, but they show what the companies have done, not what they are certain to do next.
The streaks are substantial. Walmart's stands at 53 years, and PepsiCo extended its run to 54 years in 2026. Since its 1994 public listing, Realty Income has raised its dividend 136 times. Verizon's annual increases have continued for two decades. Realty Income also outperformed the S&P 500 in 11 of the 13 market corrections since its listing. That is a limited historical record, not a forecast of how the REIT will perform in the next downturn.
As of its first-quarter 2026 report, Realty Income had made 670 consecutive monthly payments and announced its 115th consecutive quarterly dividend increase. Later, its monthly dividend was raised to $0.2715 per share, or about $3.26 annualized.
Investors weighing steadier businesses against faster-growing stocks also need to consider valuation and expectations, as discussed in this AI valuation analysis. Dividend history and growth prospects answer different questions. Neither prevents a share price from falling.
Everyday demand supports sales
Walmart operates more than 10,900 stores in 19 countries. Its annual sales total $713 billion, giving it leverage with suppliers and room to compete on price. A focus on groceries and household essentials can help sales hold up when consumers trade down from more expensive retailers. It does not guarantee steady earnings or a rising stock price.
PepsiCo generates about $95 billion in annual sales from beverages and snacks. Its brands include Pepsi and Mountain Dew; Quaker and Doritos are also part of its portfolio. The company faces demand and cost headwinds, yet expects low-single-digit organic revenue and earnings-per-share growth this year. Its push to raise prices while growing volume points to pricing power, but the outlook remains an expectation, not a result already delivered.
In 2026, PepsiCo raised its dividend by 4% despite those headwinds, moving the quarterly payout from $1.4225 to $1.48 per share. The company planned to return $8.9 billion to shareholders: $7.9 billion in dividends and $1 billion in share repurchases, according to 247WallSt. Strong free cash flow and a solid balance sheet support its ability to keep paying shareholders. Investors still have to weigh those strengths against business pressures. A dividend increase alone does not show whether the stock is attractively valued.
Rent and connectivity income
Realty Income owns retail and industrial properties. Its portfolio also includes gaming and data-center assets. Long-term net leases generally require tenants to cover many property expenses, and many contracts include annual increases fixed at a set rate or linked to inflation. Walmart is among Realty Income's top 20 tenants and accounts for 0.9% of annual base rent.
That lease structure helps support the REIT's steadily rising monthly dividend and provides a base for continued property investment. Rent is still exposed to tenant and economic stress. Realty Income's ability to invest billions of dollars annually in new properties also depends on maintaining a strong financial profile.
Verizon earns recurring revenue from wireless and broadband services, which many consumers rely on for internet and mobile connections. Network quality and scale help limit customer churn, even as switching providers has become easier. After network investment, the company generates enough free cash flow to cover its dividend. That cash also supports share repurchases and its balance sheet.
Stability has limits
These companies draw revenue from different parts of the economy, from household staples to leased property. Their dividend histories may appeal to investors seeking income or lower portfolio volatility, but the stocks are not interchangeable. Each remains exposed to risk, and a share price can fall even while its company keeps paying a dividend.
Dividend growth is only one part of total return; share-price changes matter too. A long record can signal durable cash generation, but it cannot establish whether a company will maintain its payout under future pressure or how quickly its stock will recover after a sell-off. The case for holding these names rests on diversification across durable businesses, not on an expectation that dividends will prevent losses or guarantee market-beating returns.
