Stock Market Crash: The Best Dividend Stocks to Buy Right Now
“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” — Warren Buffett
Brutal stock market sell-offs can create lucrative opportunities for investors with clear minds and steady hearts. Dividend stocks can be particularly attractive investments in bear markets, as the passive income they produce can help to offset share price declines.
The cash you receive can also make it easier to wait for an eventual rebound — and give you more dry powder to invest when stocks go on sale. To aid your search for these wealth builders, here are two rock-solid dividend stocks for your consideration.
Dividend stock to buy No. 1: AT&T
Following a slate of asset sales, AT&T (T -6.82%) is leaner, meaner, and better positioned to deliver dependable dividends to its shareholders than it’s been in decades. Investors are beginning to take notice. The telecom titan is drastically outperforming the broad market S&P 500 index so far in 2025, a trend that’s likely to continue.
CEO John Stankey has refocused AT&T on its core wireless and broadband businesses. The company wisely chose to divest its WarnerMedia and DirecTV assets in recent years. Those sales enabled AT&T to pay down debt and expand its 5G and fiber internet networks. These investments, combined with the popularity of telecom giant’s bundled wireless and internet offerings, are enabling AT&T to compete and win within the massive U.S. telecom industry.
The wireless leader gained 1.7 million postpaid phone customers in 2024. These are people who pay monthly bills and are typically the most profitable clients for telecoms. AT&T also added 1 million fiber customers, marking the seventh straight year that it gained at least 1 million high-speed internet accounts.
AT&T plans to grow its fiber network to over 50 million locations by the end of the decade, up from 28.9 million as of Dec. 31. Management expects this key segment to enjoy robust gains in the coming years, with revenue in the company’s consumer fiber broadband division rising by “mid-teens” percentages in 2025.
All told, AT&T forecasts free cash flow of more than $16 billion in 2025. The company has promised to deliver much of the cash it generates to its shareholders. Over the next three years, AT&T’s investors are set to receive over $20 billion in projected dividend payments. This stalwart stock yields a solid 3.9% today.
Buy shares now, and you’ll likely be buying alongside AT&T. In December, the communications colossus announced plans to repurchase as much as $10 billion worth of its stock by the end of 2026.
Dividend stock to buy No. 2: Kinder Morgan
If you’d like to add another passive income-producing stock to your diversified investment portfolio, consider Kinder Morgan (KMI -8.87%). The energy transporter is set to play a vital role in the artificial intelligence (AI) boom, while delivering hefty cash payouts to its investors along the way.
Kinder Morgan oversees the largest natural gas transmission network in the U.S. Its roughly 66,000 miles of pipeline span from coast to coast and ship about 40% of the gas produced in the country.
These pipelines also produce reliable profits. Kinder Morgan’s customers pay fees to reserve capacity in its energy distribution network. Kinder Morgan collects additional fees based on the volume of gas and other fuels that pass through its pipes. These fee-based contracts help to insulate its business from commodity price swings, thereby reducing the risks for investors.
Kinder Morgan is set to benefit from three powerful trends:
- U.S. liquefied natural gas (LNG) exports are projected to double by the end of the decade, driven by surging international demand for affordable and dependable power sources.
- Natural gas demand is also expected to rise within the U.S. industrial sector, fueled by the reshoring trend and higher power usage among domestic manufacturers.
- The artificial intelligence (AI) boom could drive data center power demand higher by a whopping 160% by 2030, according to Goldman Sachs, and much of this energy will likely be supplied by gas-fired power plants.
Investors can thus safely expect Kinder Morgan to extend its eight-year streak of dividend increases well into the future. With a projected cash payout of $1.17 per share in 2025, this rock-solid energy provider’s stock is currently offering you an attractive forward yield of 4.2%.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and Kinder Morgan. The Motley Fool has a disclosure policy.