The stock market is still near record highs, but volatility has returned in recent weeks. Big swings up and down in the stock market are a reminder to investors that stocks can (and do) decline from time to time.
Because of this, income investors can position themselves for a bear market by buying quality dividend stocks that have each raised their dividends for many years. Dividend growth stocks have durable competitive advantages and long-term growth.
These 3 bear market stocks can be purchased for market-beating yields, and stable dividends even during recessions.
PepsiCo Inc. (PEP)
PepsiCo is a global food and beverage company that generates $89 billion in annual sales. The company’s products include Pepsi, Mountain Dew, Frito-Lay chips, Gatorade, Tropicana orange juice and Quaker foods.
The company has more than 20 $1 billion brands in its portfolio. On February 4th, 2025, PepsiCo increased its annualized dividend by 5.0% to $5.69 starting with the payment that was made in June 2025, extending the company’s dividend growth streak to 53 consecutive years.
On October 9th, 2025, PepsiCo reported third quarter earnings results for the period ending September 30th, 2025. For the quarter, revenue grew 2.7% to $23.9 billion, which beat estimates by $90 million. Adjusted earnings-per-share of $2.29 compared unfavorably to $2.31 the prior year, but this was $0.03 better than expected.
Organic sales grew 1.3% for the third quarter. For the period, volumes for both beverages and foods were down 1%. PepsiCo Beverages North America’s organic revenue grew 2% for the period even as volume declined by 3%.
Revenue for PepsiCo Foods North America decreased 3%, largely due to divestitures. Food volume decreased 4%. The International Beverages segment fell 1%, primarily due to lower volume. Revenues in Europe/Middle East/Africa were up 5.5%. Food volume declined 1%, but this was offset by a 1.5% gain in beverages.
PepsiCo reaffirmed prior guidance for 2025, with the company still expecting organic sales in the low single-digit range. The company has increased its dividend for 53 years, making it a Dividend King.
Arthur J. Gallagher & Co. (AJG)
A.J. Gallagher was founded in 1927 as a commercial insurance broker focused on risk management. Its focus has not changed much in the decades since, but the company has grown immensely and is now present in 33 countries, offering insurance and risk management programs.
The brokerage segment makes up more than 80% of total insurance revenue, while the risk management business is the balance. A.J. Gallagher’s strategy depends upon nearly constant acquisitions, producing scale. It generates over $14 billion in annual revenue.
Gallagher posted third quarter earnings on October 30th, 2025, and results were much weaker than expected on both the top and bottom lines. Adjusted earnings-per-share came to $2.32, which missed estimates by 22 cents. Revenue was up almost 20% year-over-year to $3.37 billion, but that also missed by $90 million.
Brokerage segment organic growth was 4.5% for the quarter, which missed the company’s own estimates by about $11 million. The Risk Management segment saw organic growth of 6.7%, which met expectations. Margins were better for this segment as well.
The company noted that despite the expectations being missed, out of the last 30 quarters it has delivered double-digit revenue growth 26 times. This quarter was the 19th consecutive quarter of double-digit revenue growth with its strategy of constant acquisitions and some organic growth.
AJG has increased its dividend for 15 consecutive years.
Tennant Company (TNC)
Tennant Company is a machinery company that produces cleaning products and that offers cleaning solutions to its customers.
In the US, the company holds the market leadership position in its industry, but the company also sells its products in more than 100 additional countries around the globe. Tennant was founded in 1870.
Tennant Company reported its second quarter earnings results in August. The company announced that it generated revenues of $319 million during the quarter, which was 4% less than the top line number from the previous year’s quarter.
This was better than the performance during the most recent quarter, when the revenue decline was larger. Revenues were lower compared to what the analyst community had forecasted.
Tennant Company generated adjusted earnings-per-share of $1.49 during the second quarter, which was less than what the analyst community had forecasted, and which was down compared to the previous year.
Management is forecasting that adjusted earnings-per-share will fall into a range of $5.70 to $6.20 in 2025, which means that earnings will decline this year. At the midpoint of the guidance range, $5.95, Tennant’s earnings-per-share would be down around 10%.
TNC has increased its dividend for 54 years.
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