Bear markets are a normal part of investing in the stock market. Nobody knows when the next one will arrive, but it will eventually arrive with 100% certainty. The time to prepare is before you face the fear that comes with big market downturns. That’s why you should consider owning companies like Johnson & Johnson (NYSE: JNJ), Medtronic (NYSE: MDT), Coca-Cola (NYSE: KO), and Procter & Gamble (NYSE: PG).
But there are two pieces to the story here. First, they all operate in economically resilient industries. Second, they all have incredible dividend track records. Here’s a quick look at each one.
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You will pay to live a longer, healthier life
To be fair, you may not be happy about paying for healthcare, since it can be expensive. But you will still pay for it because, in the most extreme cases, it can be the difference between life and death. In less extreme cases, the difference is between a better and worse quality of life, and you’ll still probably pay up. The risk of not paying simply isn’t worth it.
Johnson & Johnson is a good choice if you are worried about a bear market and are looking for a safe-haven investment. It is a major player in both the pharmaceutical and medical device sectors, providing diversification. It is a Dividend King, having rewarded shareholders with more than 50 consecutive annual dividend increases. And while its yield isn’t exactly huge at 2%, it is roughly twice what you’d collect from an S&P 500 index (SNPINDEX: ^GSPC) fund. J&J isn’t exactly an exciting company, but it is a reliable one.
Medtronic is “only” on the cusp of becoming a Dividend King, but it offers a much larger 3% yield. Collecting an attractive quarterly dividend like that can give you something to watch while you try to avoid looking at the impact a bear market is having on your portfolio. Medtronic isn’t as diverse, focused exclusively on the medical device sector. However, it has new products, such as its Hugo surgical robot, that are likely to spur near-term and long-term growth. In fact, revenues grew nearly 14% in the first quarter of fiscal 2027, prompting the company to increase its full-year revenue and earnings targets after just one quarter.
You won’t stop buying food and soap
Consumer staples are relatively low-cost products that are bought regularly. Think food and toiletries. A bear market or recession, even a deep one, isn’t going to stop you from buying either. And if you really consider your own spending, you’ll likely find you are very brand loyal. That’s why companies like Coca-Cola and Procter & Gamble have such impressive histories. Both, for reference, are Dividend Kings and rank among the world’s largest consumer staples businesses.
Coca-Cola is a globally diversified beverage maker with a portfolio of iconic brands. The beverages it sells aren’t exactly necessities, since you could just drink water. However, they are affordable luxuries to which consumers are highly attached. That’s actually been showing up in recent results, with Coca-Cola managing to grow organic sales by 6% in the second quarter of 2026, with case volume up 5%. That’s particularly impressive, since customers are tightening their belts amid rising costs. If you are worried about a bear market, Coca-Cola and its well-above-market 2.2% yield should probably be on your short list.
Procter & Gamble sells toiletries including toilet paper, toothpaste, and over-the-counter medications. Organic sales rose 4% in the first quarter of fiscal 2027, indicating the business is holding up well even as consumers pull back on spending. The dividend yield is 2.7%, which is likely to make it more attractive to income investors than Coca-Cola. However, the really interesting thing about Procter & Gamble is its long-term focus on innovation, as it seeks to drive demand by offering products that deliver real benefits to consumers. The focus on leading the industry in this way should give you extra confidence in buying it ahead of a bear market, as “new” and “improved” are two of the most powerful words in the consumer staples sector.
The chart above shows the Great Recession and associated bear market. It was a time when investors were legitimately concerned that the global financial system might collapse. The chart shows clearly that the consumer staples and healthcare sectors didn’t get hit as hard as the broader market during the downturn, making them safe-haven investments.
But the graph also highlights another important fact. Both healthcare and consumer staples recovered more strongly than the broader market after the bear market had run its course. While past performance is no guarantee of future results, history is pretty clear that companies like J&J, Medtronic, Coca-Cola, and Procter & Gamble are probably smart to consider if you are worried that another deep bear market is on the way.
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Reuben Gregg Brewer has positions in Medtronic and Procter & Gamble. The Motley Fool has positions in and recommends Medtronic. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
