Updated
Updated · The Motley Fool · May 26
Motley Fool Picks 3 Defensive Stocks for a Market Crash
Updated
Updated · The Motley Fool · May 26

Motley Fool Picks 3 Defensive Stocks for a Market Crash

3 articles · Updated · The Motley Fool · May 26

Summary

  • Three stocks — Walmart, Realty Income and Philip Morris International — were singled out as buy-on-a-crash candidates because each combines durable cash flow with dividends.
  • Walmart brings 10,800 stores, 53 straight years of dividend hikes and analyst forecasts for 5% revenue and 9% EPS CAGR through fiscal 2029, though its shares trade at a rich 37 times forward earnings.
  • Realty Income adds a 5.2% forward yield, 15,500 properties and a 98.9% occupancy rate in 2025; management expects 2026 AFFO of $4.41-$4.44 per share against a $3.25 dividend.
  • Philip Morris offers a 3.1% forward yield and a shift toward smoke-free products, which made up nearly 43% of 2025 revenue after 14% organic growth.
  • The broader case is Buffett-style crash buying: a selloff could compress valuations and let investors accumulate resilient dividend names at cheaper prices.

Insights

With markets 'Strongly Overvalued,' what is the ultimate signal for investors to finally buy these defensive giants?
As 'smoke-free' revenue booms, is Philip Morris an ethical investment or just a new public health threat?
Are Buffett's classic defensive stocks truly safe from today's unique geopolitical and technological risks?