2 Dividend Stocks I'd Buy Without Hesitation During a Market Crash

Key Points

Investors often act like lemmings, rushing into and out of individual stocks and the broader market.

Long-term investors who prepare in advance can take advantage of investor emotions.

Market crashes are a great time to buy well-run companies like NextEra Energy and Procter & Gamble.

• 10 stocks we like better than NextEra Energy ›

I've lived through two material bear markets, the dot-com crash at the turn of the century and the market downturn that accompanied the Great Recession. At the time, they were terrible, but in hindsight, they were great times to buy stocks.

There will eventually be another market crash; that's just how Wall Street works. Preparing ahead with a short list of stocks you would love to own if they were only cheaper will prepare you to buy while everyone else is selling. I suggest you put NextEra Energy (NYSE: NEE) and Procter & Gamble (NYSE: PG) on your short list. Here's why.

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NextEra Energy is two businesses in one

The foundation of NextEra Energy's business is Florida Power & Light. It is a regulated utility in the state of Florida. Florida has long benefited from in-migration as U.S. citizens look for a warmer climate and lower taxes (Florida has no state income tax). So the company's regulated utility operation has a growth bias, with regulators seemingly happy to work with the company on its capital investment plans and rates. That alone makes NextEra Energy attractive, since its customers will continue to buy electricity even in a market downturn, but there's another part of the business.

In addition to the regulated utility operations, NextEra Energy is also one of the world's largest generators of solar and wind power. This is the company's big growth driver. Oil and natural gas will remain important power sources for decades to come, but the longer-term shift is still toward cleaner energy alternatives. NextEra Energy has proven to be a good steward of shareholder capital, having used its unique combination of businesses to support decades of annual dividend increases.

Dividend increases should continue, given the company has projected 8% annualized earnings growth through 2030. In 2026, dividend growth is expected to be 10%, with 6% in the two years thereafter. These are solid numbers for a utility, but NextEra Energy's stock is normally afforded a premium. Right now, however, the yield is 2.5%, which is inline with the average utility yield. NextEra is reasonably attractive now, but a market crash could make the stock extra attractive.

Procter & Gamble is an industry leader

Procter & Gamble is one of the world's largest consumer staples companies. It is also a Dividend King, with over 50 years of annual dividend increases. P&G can stand toe-to-toe with any competitor when it comes to marketing, brand strength, and distribution. Where it really shines is innovation.

The company is always bringing out new and improved products. It wants to offer customers superior products and grow the categories in which it competes. This focus keeps P&G ahead of the consumer products pack and makes the company a valuable partner for its retailer customers.

Adding to the allure is the nature of the products P&G sells. You aren't going to stop buying deodorant and toilet paper during a market crash or recession. That makes the business very resilient, highlighted by the 3% organic growth it achieved in the fiscal third quarter of 2026 despite increasingly budget-conscious consumers. The dividend yield is 2.9%, which is fairly attractive compared to the 2.2% average for the consumer staples sector. It is worth looking at now, but a deep market sell-off would be an even better opportunity to buy this industry-leading consumer staples company.

Prepare ahead so you'll act when the time is right

Market crashes are a normal feature on Wall Street. You can't avoid them if you are going to be a long-term investor, but you can prepare to take advantage of them. Create a wish list before the next market crash, and you'll increase your chances of buying when most investors are selling out of fear.

I think two good additions for your wish list are NextEra Energy and Procter & Gamble. You could probably justify buying each one right now, but you'll likely get an even better opportunity if there is a deep bear market.

Should you buy stock in NextEra Energy right now?

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Reuben Gregg Brewer has positions in Procter & Gamble. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.