Market Turmoil: 3 Stocks to Steady Any Portfolio

In the ever-changing landscape of the stock market, 2025 has brought a wave of uncertainty. President Trump's tariff plan, unveiled on April 2, 2025, has sent stocks into a tailspin, with the S&P 500 experiencing a significant decline. This turmoil has left many investors wondering how to steady their portfolios amidst the chaos. Fortunately, there are stocks that have historically shown resilience during economic uncertainty. Let's dive into three such stocks that can provide stability and steady returns in turbulent times.

1. Coca-Cola Co. (KO)

Coca-Cola Co. (KO) is a stalwart in the consumer staples sector, known for its strong baseline demand and global scale. With a forward yield of 2.9% and a market value of $297 billion, KO is less prone to the ups and downs experienced by consumer discretionary stocks. The company's products are essentials that consumers continue to purchase regardless of economic conditions. This stability is reflected in its consistent dividend payouts and a track record of over 50 consecutive years of dividend increases. For investors seeking a reliable source of income, KO is a solid choice.

2. Consolidated Edison Inc. (ED)

Consolidated Edison Inc. (ED) is a utility company that distributes electricity to about 3.6 million customers in the New York City area. With a forward yield of 3.1% and a market value of $38 billion, ED is one of the most reliable defensive stocks in the utilities sector. The company's stable revenue and essential services make it a resilient stock during market downturns. ED's track record of more than 50 consecutive years of dividend increases further underscores its stability and reliability.

3. Philip Morris International Inc. (PM)

Philip Morris International Inc. (PM) is a leading tobacco company with a strong cash flow and consistent dividend payouts. With a forward yield of 3.5% and a market value of $239 billion, PM is a reliable stock during market downturns. The company's products have a strong demand, and its global presence provides a stable revenue stream. PM's ability to perform well even in turbulent market conditions makes it a valuable addition to any portfolio seeking stability and steady returns.

Historical Performance During Economic Uncertainty

Historically, during similar periods of economic uncertainty, defensive sectors such as consumer staples and utilities have shown resilience. Companies like Coca-Cola Co. (KO) and Consolidated Edison Inc. (ED) have stable revenue and are less prone to the ups and downs experienced by consumer discretionary stocks. For example, during the 2008 financial crisis, KO and ED continued to provide stable returns to investors, while many other stocks experienced significant declines.



Key Factors Driving Recent Market Turmoil

The recent market turmoil has been primarily driven by President Trump's tariff plan, which has sent stocks into a tailspin. Many economists worry that the tariffs could spark a trade war and ignite a global economic slowdown. This uncertainty has led to a significant decline in the S&P 500 index, with many top-performing stocks from the previous year showing negative returns. For example, Tesla Inc (TSLA) had a one-year performance of 50.46%, but its YTD performance as of April 4, 2025, was -37.27%. Similarly, Welltower Inc (WELL) had a one-year performance of 65.15%, but its YTD performance was 19.60%. These examples illustrate how the market turmoil has affected even some of the top-performing stocks.

Conclusion

In conclusion, the recent market turmoil has created an opportunity for investors to steady their portfolios with resilient stocks. Coca-Cola Co. (KO), Consolidated Edison Inc. (ED), and Philip Morris International Inc. (PM) are three stocks that have historically shown resilience during economic uncertainty. Their strong baseline demand, stable revenue, and consistent dividend payouts make them valuable additions to any portfolio seeking stability and steady returns. As the market continues to navigate the challenges posed by the tariff plan, these stocks can provide a lifeline for income-seeking investors.