3 Dividend Stocks For Stability

Introduction

Investors have long relied on banks and property stocks for dividends but that comfort comes with concentration risk. When interest rates shift, regulations tighten, or property cycles turn, portfolios heavily tilted toward these two sectors can suffer at the same time.

That’s why looking beyond the stock market isn’t just about chasing higher yields, it’s about building a more resilient income stream.

By adding high-quality dividend stocks from different sectors and geographies, investors can build a portfolio that generates income across economic cycles.

Here are 3 global leaders that offer durable cash flows, long-term resilience, and meaningful diversification.

1. NextEra Energy

Dividend Growth Driven by the Energy Transition

NextEra Energy is not a traditional utility. It is the world’s largest producer of wind and solar energy, complemented by a regulated utility business in Florida that provides stable, predictable cash flows.

This dual engine creates a compelling income profile:

• Stability from regulated utility earnings

• Growth from one of the largest renewable energy pipelines globally

Management has guided for 6–8% annual earnings growth through 2026, supported by structural demand from electrification, AI data centres, and decarbonisation initiatives. That growth feeds directly into shareholder returns, with the company targeting around 10% annual dividend growth over the medium term.

As global power demand accelerates, NextEra is positioned not as a cyclical utility—but as a long-term infrastructure winner.

2. Johnson & Johnson

Pursuing High-Margin Growth

Following the 2023 spin-off of its consumer health division into Kenvue, Johnson & Johnson (J&J) has emerged as a more focused healthcare powerhouse, anchored on two high-value segments: Innovative Medicine and MedTech. This strategic shift is already translating into stronger growth and profitability.

In Q3 2025 (quarter ended 28 September), J&J delivered 6.8% year-on-year revenue growth to US$24 billion, while adjusted earnings surged 15.7% to US$6.8 billion, driven by broad-based momentum across its portfolio. The company’s commitment to shareholder returns remains clear, with US$9.3 billion in dividends paid and US$4.0 billion in share buybacks year-to-date.

Looking ahead, J&J plans to spin off its Orthopaedics unit, DePuy Synthes, within the next 18–24 months, further sharpening its focus on higher-margin, innovation-led businesses. Its drug portfolio continues to deliver standout performance: 12 brands recorded double-digit growth in Q3, led by TREMFYA, which posted an impressive 40% growth rate. The company also secured FDA approval for INLEXZO, a new treatment for bladder cancer, reinforcing the depth of its pipeline.

Together, the strategic portfolio reshaping and accelerating pharmaceutical momentum underscore J&J’s strength as a high-quality dividend stock with defensive characteristics and long-term growth optionality.

3. PepsiCo

From Soda Icon to Global Consumer Staple

PepsiCo is far more than just Pepsi. Today, it is a diversified global food and beverage leader with brands spanning Lay’s, Doritos, Gatorade, Quaker, Mountain Dew, and more giving it powerful positioning across snacks and beverages worldwide.

In Q3 2025 (quarter ended 6 September), PepsiCo reported 3% year-on-year revenue growth to US$23.9 billion. While operating earnings declined 8% to US$3.57 billion due to cost pressures, commodity inflation, and M&A-related charges, the underlying business remains fundamentally resilient.

Importantly for income investors, PepsiCo continues to deliver on shareholder returns. The company raised its annualised dividend by 5% to US$5.69 per share, maintaining its Dividend Aristocrat status (over 25 consecutive years of dividend increases). Its 75% payout ratio remains sustainable, supporting ongoing dividend durability.

Capital returns extend beyond dividends. PepsiCo plans US$1.0 billion in share buybacks for 2025, and together with US$7.6 billion in expected dividends, total shareholder returns for the year are projected to reach US$8.6 billion.

Strategically, PepsiCo is managing costs while investing in international expansion and pivoting toward healthier product offerings including higher protein, fibre, and whole-grain options to stay aligned with evolving consumer preferences.

The result is a business with global brand strength, defensive cash flows, consistent dividend growth, and disciplined capital returns.

Why These 3 Stocks Work Well Together

Each company taps into a different long-term economic driver:

• NextEra Energy → Infrastructure growth + energy transition exposure

• Johnson & Johnson → Healthcare innovation + defensive earnings

• PepsiCo → Consumer staples resilience + global brand power

Together, they provide:
- Reliable dividend income
- Resilient, high-quality business models
- Sector diversification beyond finance and property
- Global exposure to long-term secular trends.

Key Takeaway for Investors

For investors, sustainable income today requires more than just chasing yield, it requires building a diversified dividend engine. By owning global leaders like Johnson & Johnson, PepsiCo, and NextEra Energy, investors gain exposure to healthcare, consumer staples, and infrastructure - 3 sectors that behave very differently from banks and property.

The outcome is a portfolio designed not only to weather market cycles, but to compound income steadily over time.

Happy Investing!!