7 Reliable Dividend Stocks That Didn’t Flinch During COVID-19

The 2020 recession tested companies across every sector, forcing many to slash or suspend dividends as the world shut down during COVID-19.

But a select group of reliable dividend payers didn’t flinch. Instead, they kept raising payouts through one of the most uncertain periods in modern history.

For investors, these stocks stand out as examples of resilience and financial discipline, proving their ability to reward shareholders even under pressure. That track record can make them attractive candidates for long-term income strategies.

Here are 7 dividend stocks that increased payouts during the 2020 recession and continue to demonstrate strength today.

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Here are 3 stocks that analysts think are most undervalued today:

Coca-Cola (KO)

Coca-Cola (KO) is one of the world’s largest beverage companies, with a portfolio that spans soft drinks, juices, teas, coffees, and water brands. Its key offerings include Coca-Cola, Sprite, Fanta, Minute Maid, Costa Coffee, and smartwater, distributed through an extensive global network of bottling partners.

The company has achieved steady growth over the last five years, with an average annual revenue increase of around 5% to 6%. Its 3-year average return on equity (ROE) stands at approximately 42%, reflecting strong profitability and efficient capital allocation.

Coca-Cola maintains a dividend payout ratio of roughly 75% of earnings and offers a dividend yield of about 3%. Supported by powerful global brands and consistent free cash flow generation, the company remains a stable and defensive holding within the consumer staples sector.

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Colgate-Palmolive (CL)

Colgate-Palmolive (CL) is a global leader in oral care, personal care, and home care products, with operations spanning over 200 countries. The company’s flagship brand, Colgate, holds a dominant share in the global toothpaste market, complemented by well-known brands such as Palmolive, Protex, and Hill’s Science Diet in the pet nutrition segment.

Over the last five years, Colgate-Palmolive has achieved steady revenue growth of approximately 5% per year, supported by strong pricing, consistent demand for essential products, and expansion in emerging markets. Its 3-year average return on equity (ROE) stands at well over 400% (and is often much higher), reflecting both its high profitability and the significant impact of share repurchases on its common equity base.

The company maintains a dividend payout ratio of roughly 60% and offers a dividend yield of about 2.3%. With strong global brand recognition, consistent cash flow generation, and a stable dividend history of over six decades, Colgate-Palmolive continues to represent a reliable and defensive holding in the consumer goods sector.

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Walmart (WMT)

Walmart (WMT) is the world’s largest retailer, serving millions of customers each week through its vast network of stores and growing e-commerce platforms. The company offers a wide range of products, including groceries, household goods, and apparel, while continuing to invest in digital transformation and logistics efficiency.

Over the last five years, Walmart has delivered average annual revenue growth of about 5.4%, supported by strong performance in its core grocery segment and omnichannel expansion. Its Trailing Twelve Months (TTM) return on equity (ROE) stands at approximately 22% to 24.5%, reflecting strong and consistent profitability.

Walmart maintains a dividend payout ratio of around 33% and a forward dividend yield of roughly 0.9%. With stable cash flows, a strong market presence, and a long history of steady dividend increases (a Dividend Aristocrat), Walmart remains a dependable choice for investors seeking long-term defensiveness in the retail sector.

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Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential

TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.

Inside, you’ll get a breakdown of 5 high-quality businesses with:

• Strong revenue growth and durable competitive advantages
• Attractive valuations based on forward earnings and expected earnings growth
• Long-term upside potential backed by analyst forecasts and TIKR’s valuation models

These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.

Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!