Dividend Stability in Volatile Markets: Heritage Commerce and Two Top Picks

In an era of economic uncertainty, investors are increasingly drawn to companies that offer both steady income and proven resilience. heritage commerce corp (NASDAQ: HTBK), a regional banking powerhouse, exemplifies this approach with its unbroken dividend streak since 2013. But it’s not alone. Two other stalwarts—Coca-Cola (NYSE: KO) and National Fuel Gas (NYSE: NFG)—also stand out for their dividend discipline and growth potential. Together, they form a trio of stocks poised to navigate market turbulence while rewarding shareholders.

Heritage Commerce Corp (HTBK): A Banking Anchor in the Golden State

Heritage Commerce Corp, the parent of Heritage Bank of Commerce, has built a reputation for financial stability through its $0.13-per-share quarterly dividend, unchanged since 2013. With 19 branches across California and SBA Preferred Lender status, the bank serves a robust regional economy while diversifying revenue through its factoring subsidiary, Bay View Funding.

The stock’s dividend yield of 2.1% may not be the highest, but its consistency is unmatched. Crucially, HTBK’s dividend payout ratio (dividends divided by net income) remains below 30%, indicating ample room for growth.

Why it matters: Banks like HTBK thrive in rate-hike environments. As the Federal Reserve signals potential further tightening, its net interest margin—the difference between loan rates and deposit costs—could expand. With $10.2 million in Q1 2025 net income, HTBK’s fundamentals support its dividend reliability.

Coca-Cola (KO): The Time-Tested Dividend King

Coca-Cola’s recent 5% dividend increase to $0.51 per share underscores its status as a 63-year dividend grower—one of only 11 companies in the Dividend Kings club. Its 2.88% forward yield pairs with a 15% YTD stock gain in 2025, making it a dual-income play.

Key drivers include its $17 billion in annual free cash flow and 2% unit case volume growth in Q1 2025, despite inflationary pressures. Analysts at Goldman Sachs project 6% annual earnings growth, positioning KO for total returns exceeding 8.9% by 2026.

Why it matters: KO’s global brand portfolio, from Coke to Dasani, ensures steady demand. Its $36.2 billion in 2024 revenue and dividend payout ratio of 68%—comfortably below its 70% threshold—signal sustainability even in recessions.

National Fuel Gas (NFG): Energy Resilience with a 4.44% Yield

National Fuel Gas, a 50-year dividend grower, offers the highest yield among this trio at 4.44%, with a recent hike to $0.31 per share. Its 30% YTD stock gain in 2025 reflects rising demand for natural gas, which fuels data centers, heating, and industrial projects.

The company’s regulated utility segment provides steady cash flows, while its exploration and production division benefits from $3/MMBTU natural gas prices, up 15% year-over-year. Analysts at Mizuho forecast a 10% EPS CAGR through 2027, supported by pipeline investments and renewable projects.

Why it matters: NFG’s dividend payout ratio of 55% leaves room for further hikes. Its $1.2 billion capital expenditure plan through 2025 targets efficiency gains, ensuring profitability even as energy markets fluctuate.

Conclusion: Dividends as Defenses Against Uncertainty

These three stocks share a common thread: dividend consistency backed by solid fundamentals. Heritage Commerce’s regional banking strength, Coca-Cola’s global brand dominance, and National Fuel’s energy resilience form a portfolio designed to outlast volatility.

• HTBK offers a 2.1% yield with low payout risk, ideal for income-focused investors.
• KO combines a 2.88% yield with single-digit total return potential, making it a core holding.
• NFG’s 4.44% yield and 30% YTD gains highlight its appeal for growth-and-income seekers.

Together, they reflect a broader truth: dividend aristocrats with low payout ratios, diversified revenue streams, and long-term growth catalysts are the bedrock of stable portfolios. In a market where uncertainty reigns, these stocks stand tall as pillars of financial discipline.

As the Federal Reserve’s policy path remains unclear and energy dynamics shift, investors would be wise to anchor their strategies in companies that have proven their mettle over decades—starting with Heritage Commerce, Coca-Cola, and National Fuel Gas.