In the Wake of the Trump Tariff Crash: 2 Unparalleled Dividend Stocks to Buy at a Discount Right Now

The Trump Tariff Crash of 2025 sent shockwaves through global markets, with the S&P 500 plummeting nearly 9% in two days and wiping out over $5 trillion in value. Amid this turmoil, sectors like manufacturing, technology, and agriculture face steep headwinds. Yet, for value investors, the chaos has created rare opportunities in defensive stocks with strong dividend histories and resilient business models. Here are two picks that offer both stability and upside potential in this fractured landscape.

Johnson & Johnson (JNJ): A Healthcare Titan for All Seasons

Johnson & Johnson, a healthcare giant with a 50-year streak of dividend increases, stands out as a fortress in today’s volatile market. The company’s $420 billion valuation is underpinned by a diversified portfolio spanning pharmaceuticals, medical devices, and consumer health products. Its brands—like Listerine, Neutrogena, and Tylenol—are household names, while its pharmaceutical division includes blockbuster drugs such as Stelara (psoriasis) and Tremfya (rheumatoid arthritis).

Why Now?

• Resilient Demand: Healthcare is a defensive sector, and J&J’s mix of consumer, prescription, and medical device sales insulates it from tariff-driven disruptions. Even if tariffs affect specific products, the company’s global supply chain and pricing power allow it to offset costs.
• Valuation Discount: JNJ’s stock has dipped 12% since the tariff crash began, despite its stable fundamentals. Its current dividend yield of 2.8% is near its 5-year high, and its payout ratio (52%) remains comfortably sustainable.
• Growth Catalysts: The FDA’s recent approval of its Alzheimer’s drug, lecanemab, adds a new revenue stream.

AT&T (T): Telecom Stability in a Chaotic World

AT&T, the telecom giant with a 140-year history, offers investors a 6.3% dividend yield—among the highest in the S&P 500—and a business model insulated from trade wars. Its core operations include wireless service, broadband, and pay-TV subscriptions, all of which are domestically focused and less exposed to tariff-related supply chain issues. The company’s recent focus on cost discipline and debt reduction has strengthened its financial footing.

Why Now?

• Defensive Cash Flow: With over 145 million U.S. wireless customers, AT&T’s recurring revenue stream is a cash machine. Its dividend is covered 1.5x by free cash flow, ensuring sustainability even in a recession.
• Undervalued Shares: AT&T’s stock has fallen 18% since early 2025, driven by broader market panic. Its price-to-earnings ratio of 7.2x is well below its 10-year average of 14.5x, offering a margin of safety.
• Dividend Safety: Unlike companies in tariff-heavy sectors like autos or semiconductors, AT&T’s dividend is not at risk of cuts.

The Case for These Stocks: Data-Backed Convictions

Both JNJ and AT&T thrive in environments where economic uncertainty reigns. Here’s why they’re compelling buys now:

1. Dividend Stability:
2. JNJ’s dividend has grown for 59 consecutive years, and its payout ratio (52%) leaves room for future hikes.

3. AT&T’s dividend yield of 6.3% is double its 10-year average, offering a high return on capital amid market volatility.

4. Valuation Discounts:

5. JNJ trades at 23x forward earnings, below its 5-year average of 26x, despite its strong growth prospects.

6. AT&T’s 7.2x P/E is half its historical average, reflecting an overreaction to broader tariff fears.

7. Sector Resilience:

8. Healthcare and telecoms are among the least affected sectors by tariffs. JNJ’s global footprint and AT&T’s domestic focus shield them from retaliatory measures targeting trade-dependent industries.

Conclusion: Safety in Uncertainty

The Trump Tariff Crash has created a buyer’s market for investors willing to look past short-term volatility. Johnson & Johnson and AT&T represent two pillars of stability in this storm:

• JNJ offers a 2.8% yield, a fortress balance sheet, and growth from its pharmaceutical pipeline. Its stock is down 12% year-to-date but remains a top pick for long-term income.
• AT&T provides a 6.3% yield in a sector with no tariff exposure. Its valuation is deeply discounted, and its dividend is rock-solid.

While no investment is risk-free, these stocks combine dividend safety, undervaluation, and defensive sectors to offer a compelling hedge against the tariff-driven market crash. As the dust settles, these picks could be among the first to rebound.

Investment decisions should consider individual risk tolerance and financial goals. Always conduct thorough due diligence.