Worried About a Market Crash? These 3 High-Yielding Stocks Can Be Safe Long-Term Options

The stock market is showing signs of weakness. The S&P 500 index, which tracks the leading stocks on U.S. markets, is down around 5% from its high. It's not in correction territory, but it could potentially decline further, especially if interest rates continue to rise.

Many investors have been pulling money out of tech stocks and other highly valued investments of late, perhaps as a sign of concern for where the market may be heading. For investors who are worried about a potential market crash, there are three excellent dividend stocks that may be solid options to consider right now: Realty Income (NYSE:O), Chevron (NYSE:CVX), and Pfizer (NYSE:PFE).

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Realty Income

Realty Income is a top real estate investment trust (REIT) that can realistically be a fit for just about any type of portfolio. The dividend income it generates makes the investment a bit of a rarity, as it provides investors with a high yield of around 5.5%, has grown its dividend for decades, and pays monthly.

The REIT's portfolio is highly diverse, which can be extremely valuable for investors looking for safety. Realty Income isn't dependent on the health and strength of just one sector of the economy; instead, it has clients in 96 industries, and yet its occupancy rate is incredibly high at just under 99%.

Realty Income has generated modest returns of 6% for investors over the past year, but the real payoff comes from collecting the dividend it has been growing regularly. Realty Income is the type of stock that all investors can comfortably buy and hold for the long haul.

Chevron

Owning a top oil and gas stock can be vital when market conditions are poor, especially if inflation is high. Chevron's stock soared by more than 50% in 2022 when the market was down big due to inflation. In the past 12 months, it's risen by around 35% due to inflation and rising oil prices, yet again.

Chevron, being the oil and gas giant that it is, benefits from higher commodity prices and can thus be a fairly safe long-term holding, giving investors a valuable way to diversify their portfolios and hedge against adverse market conditions.

Like Realty Income, it has also been raising its payout for decades. If not for its stellar gains this year, its yield would be higher than it is right now. However, even at 3.4%, it's still more than three times the S&P 500 average of 1.1%. This is yet another top dividend stock that investors may want to hang on to for long-term stability.

Pfizer

The highest yield on this list belongs to drugmaker Pfizer, which currently pays 5.9%. The healthcare stock has taken a beating for a while now, falling 40% in the past five years as investors have become concerned about its long-term growth prospects, with COVID-related revenue diminishing sharply in recent years and the company also facing patent cliffs on key drugs.

Pfizer, however, is a business that has been a leader in the healthcare industry for decades, continually finding ways to develop and bring new drugs to market. Its recent results highlighted that strength, with the company generating 32% growth from its portfolio of recently launched and acquired products.

The stock may appear to be a bit of a contrarian pick given its poor returns in recent years and its high dividend yield. However, it's a much safer investment than it looks, as its fundamentals remain solid. And with the stock trading at a forward price-to-earnings multiple of just under 10, based on analyst expectations, it could prove to be a steal of a deal in the long run.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron, Pfizer, and Realty Income. The Motley Fool has a disclosure policy.