My 'Win-Win' Strategy: 3 Dividend Stocks For Any Market

Market Overview - The stock market recently experienced a significant increase in volatility, with the S&P 500 seeing its longest streak without a 2% daily decline since the Great Financial Crisis, lasting 356 trading days [2][4] - The recent market downturn was unexpected, attributed to the unwinding of the Japanese yen carry trade, which had previously supported investments in riskier assets like tech stocks [6][12] - Economic indicators suggest weakening growth, with rising unemployment triggering the "Sahm Rule," indicating a potential recession [8][10] Company Analysis: Republic Services (RSG) - Republic Services is the second-largest waste management company in North America, operating in a $114 billion market with 80% annuity-type revenues [21][24] - The company has demonstrated strong financial performance, with a 16% annual EPS growth over the past three years and a total return of nearly 150% over five years, outperforming the S&P 500 by 41% [26][28] - Currently yielding 1.2%, the dividend has a payout ratio of 36% and has been increased for 20 consecutive years, with a five-year CAGR of 7.4% [27][28] Company Analysis: Cboe Global Markets (CBOE) - Cboe is a major exchange operator in the U.S. and Europe, benefiting from increased demand for options and elevated market volatility [31][32] - The company is shifting focus from M&A to organic growth, expanding its footprint in APAC nations and enhancing its data and access solutions segment, which has grown by 11% annually since 2Q21 [33][36] - Cboe has a dividend yield of 1.1% with a payout ratio of 26% and a five-year CAGR of 12.2%, indicating a commitment to shareholder returns [40][41] Company Analysis: Lockheed Martin (LMT) - Lockheed Martin is a leading defense contractor, generating nearly all revenue from government contracts, which provides a stable and anti-cyclical business model [42] - The company is experiencing positive momentum, with a recent increase in sales and EPS guidance, driven by demand for advanced military projects [44][45] - Lockheed Martin has a dividend yield of 2.3%, a payout ratio of 44%, and has increased its dividend for 21 consecutive years, reflecting strong financial health [47][49]