3 dividend-paying stocks to buy put your fists in if the market crashes

I am absolutely convinced that the stock market is going to collapse. However, I have no idea when this will happen. It could be in 2021 or in several years.

There is also something else that I am convinced of: buying certain dividend stocks when the market is crashing is a good idea. You can get fantastic returns when you invest in good dividend paying stocks that are trading at a low price.

What are the best stocks to recover during a major market collapse? The list includes some good choices. Here are three dividend-paying stocks that I particularly think should be bought hand in hand if the market collapses.

AbbVie

AbbVie (NYSE: ABBV) already offers a hefty dividend yield of over 4.5%. And you can count on the company’s dividend as it continues to flow and grow. AbbVie is only one dividend increase before joining the equity group known as Dividend Kings – members of the S&P 500 with at least 50 consecutive years of dividend increases.

What would happen to AbbVie in a stock market crash? Shares of the big drugmaker would likely fall as they did in the coronavirus-fueled sale last year. This would push its dividend yield even higher. However, AbbVie stock would likely be among the first to rebound due to the strength of its underlying activity.

Admittedly, AbbVie faces some uncertainties. The company’s best-selling drug, Humira, faces biosimilar competition in the United States from 2023, with sales falling almost certainly. The United States Food and Drug Administration (FDA) has suspended approval decisions for the inhibitor of JAK Rinvoq in three indications due to safety concerns raised by Pfizerthe post-approval clinical study of Xeljanz, which is also a JAK inhibitor.

But Rinvoq has already received FDA approval for the treatment of rheumatoid arthritis. AbbVie remains confident it will get additional approvals. The company also expects a rapid return to overall sales growth after a temporary decline in 2023 due to lower sales expected for Humira. I don’t think AbbVie’s dividend is in jeopardy – and in the event of a stock market crash, it would be particularly attractive.

Eastern Government Properties

There are a handful of dividend-paying stocks that I would buy right now without even hesitating for a moment. Eastern Government Properties (NYSE: DEA) takes pride of place on this list.

That’s not just because of Easterly’s 4.8% dividend yield (although it’s hard not to really like that yield). What I find particularly compelling about this stock is its underlying business model which makes this dividend one of the safest you can find in the market.

Easterly’s name pretty much tells the story. The company owns and leases government properties. As of March 31, 2021, Easterly’s portfolio consisted of 82 properties, 80 of which were leased to US government agencies. Since then, the company has acquired a building in Kansas City, Missouri, which is leased to the National Weather Service.

I can’t think of a more secure tenant than the US government. If the day comes a day when Uncle Sam can’t pay his rent, we’ll have more to worry about than just a stock market crash.

Enterprise Product Partners

Enterprise Product Partners (NYSE: EPD) was one of the dividend-paying stocks that I personally bought when the stock market fell last year. In doing so, I locked in a dividend yield of almost 12%.

Intermediate energy stock has skyrocketed since the big sale of 2020. As a result, its dividend yield has also fallen significantly, but still stands at 7.6%.

But could enterprise product partners have long-term issues as fossil fuel use declines? Perhaps. I’m not too worried, however. The company arguably has a decisive advantage in its strong focus on low-emission natural gas, natural gas liquids and low-sulfur crude oil.

In addition, Enterprise Products Partners is looking for development opportunities in carbon capture, hydrogen, recycling and renewable fuels. These will not be about to supplant the core business of the company. However, Enterprise has embarked on an “all of the above” approach which I believe will pay off for investors for a long time.