Dividend stocks' resilience during market crashes

What happened: Costco, a low-beta stock, has historically thrived during market downturns, delivering annual top-line growth in all but one of the last 33 years. Despite a sluggish trading year, it remains a 147-bagger since going public. Meanwhile, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) fell 6% in the 2022 bear market while the S&P 500 dropped 19%. Specific dividend stocks like KO, JNJ, and PG have weathered market crashes, with PG's beta of 0.38 making it one of the lowest-volatility large caps in the S&P 500.

Market impact: Dividend stocks, particularly those with long histories of dividend growth and low betas, have shown resilience during market crashes. This is beneficial for income-oriented investors and those seeking stability in volatile markets. However, these stocks may lag in bull market rallies. Companies like Costco, KO, JNJ, and PG could attract investors seeking defensive plays.

What to watch next: Investors should monitor Costco's Q3 earnings, due in late May, for signs of continued growth. The upcoming June and July market performance will provide further insight into dividend stocks' resilience. Additionally, the next ex-dividend dates for KO (June 13), JNJ (July 5), and PG (July 11) will indicate if these companies maintain their dividend streaks.