During the depths of the Great Recession in 2009, Warren Buffett said: “Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons.”
In other words, market crashes should be seen as great opportunities to buy the best stocks at discounted prices. If that happens, I’d scoop up more shares of Walmart (NASDAQ: WMT), Realty Income (NYSE: O), and Philip Morris International (NYSE: PM) without any hesitation.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
Walmart is an evergreen retailer
Walmart, the world’s largest brick-and-mortar retailer with over 10,800 stores and clubs across 19 countries, has raised its dividend for 53 consecutive years. Its forward yield of 0.8% might seem low today, partly because its stock has soared 155% over the past five years, but it has consistently raised its payout through wars, recessions, and other economic downturns.
Over the years, Walmart upgraded its e-commerce marketplace, used its stores to fulfill online orders, rolled out more curbside and same-day delivery options, matched Amazon‘s prices, and launched its own Walmart+ service to challenge Amazon Prime.
Walmart also expanded overseas, opened more Sam’s Club stores to compete against Costco, and even launched its own advertising business across its physical stores, mobile app, and connected TVs. All of those efforts kept Walmart relevant as the retail sector faced seismic shifts in consumer spending and other existential challenges.
From fiscal 2026 (which ended this January) to fiscal 2029, analysts expect Walmart’s revenue and EPS to grow at CAGRs of 5% and 9%, respectively. Those growth rates are steady, but its stock doesn’t look cheap at 37 times next year’s earnings. If a market crash finally compresses those valuations, I’d gladly buy some shares of this evergreen retail stock.
Realty Income is a top-notch REIT
Realty Income — which owns more than 15,500 commercial properties across the U.S., the U.K., and Europe — is one of the world’s largest real estate investment trusts (REITs). As an REIT, it leases its properties to businesses and must pay out more than 90% of its taxable income to its investors as dividends to maintain a lower tax rate.
