Bear markets happen on occasion, and recessions are inevitable in a cyclical economy. What is most important is that investors keep their cool when the markets take a nosedive.
Investors should resist the urge to sell their stocks, and continue to hold quality dividend stocks even though it is tempting to cash out when markets are in free-fall.
These 3 bear market stocks represent high-quality businesses that are able to generate strong profits and raise their dividends, even during stock market declines.
SEI Investments (SEIC)
SEI Investments was founded in 1968 and over the last 50+ years has grown into a global provider of investment processing, investment management, and investment operations solutions for financial institutions and advisors.
SEI has about $1.6 trillion combined in assets under administration and management. The company should produce about $2.6 billion in revenue this year.
SEI posted fourth quarter and full-year earnings on January 28th, 2026, and results were better than expected on both the top and bottom lines. Earnings were $1.38 per share, which was three cents ahead of estimates.
Revenue was up 9% year-on-year to $608 million, which was over $10 million better than expected. Strength was seen in Private Banking, but management noted that revenue and margin expansion was seen across nearly all of its business segments.
Looking forward, the management team sees strong growth in launches in ETFs and select alternative products where they feel SEIC has an edge.
SEI repurchased $101 million of shares during the quarter, and $616 million for the year. That was good for a ~6% reduction based upon the 2024 closing share count.
The company raised its dividend by 6% to a new payout of $1.04 annually in December of 2025, its 35th consecutive year of dividend increases.
Automatic Data Processing (ADP)
Automatic Data Processing is one of the largest business services outsourcing companies in the world. The company provides payroll services, human resources technology, and other business operations to more than 700,000 corporate customers.
ADP posted second quarter earnings on January 28th, 2026, and results were better than expected on both the top and bottom lines.
Adjusted earnings-per-share came to $2.62, which was a nickel ahead of estimates, and was up from $2.49 in Q1, and from $2.35 in the year-ago period. Revenue was up 7.2% year-over-year to $5.36 billion, beating estimates by $20 million.
Expenses came to $4.08 billion, which was higher from $3.98 billion in Q1 and $3.88 billion a year earlier. Adjusted EBIT margin was 26.0% of revenue, up from 25.5% in Q1 and from 25.2% a year ago. The company guided for revenue growth of 6% for this year, adjusted EBIT margin of ~60 basis points, and adjusted diluted earnings-per-share growth of 9% to 10%.
ADP has increased its dividend for 51 consecutive years.
Factset Research Systems (FDS)
FactSet Research Systems, a financial data and analytics firm founded in 1978, provides integrated financial information and analytical tools to the investment community in the Americas, Europe, the Middle East, Africa, and Asia-Pacific.
The company provides insight and information through research, analytics, trading workflow solutions, content and technology solutions, and wealth management.
On December 18th, 2025, FactSet Research Systems announced Q1 2026 results, reporting non-GAAP EPS of $4.51 for the period, beating market consensus by $0.15, and revenue that grew 6.8% to $607.6 million.
FactSet reported a solid start to fiscal 2026, with solid results that were driven by continued demand from institutional buy-side and dealmakers clients.
Organic revenues increased 6.0%, while organic Annual Subscription Value reached $2.39 billion as of November 30th, 2025, representing 5.9% growth from the prior year.
Profitability metrics softened modestly as FactSet continued to invest in technology, content, and talent. GAAP operating margin declined to 31.6%, down roughly 200 basis points year over year, while adjusted operating margin decreased 137 basis points to 36.2%.
Despite margin pressure, cash generation remained strong, with operating cash flow increasing more than 40% and free cash flow up nearly 50% from the prior year.
Reflecting confidence in its financial position and long-term outlook, FactSet’s Board of Directors approved an expansion of the company’s share repurchase authorization from $400 million to $1 billion.
FDS has increased its dividend for 26 consecutive years.
