3 Dividend Stocks Warren Buffett Would Buy in a Market Crash

It's not a prediction that a sizable setback is in the cards. There's also no guarantee that stocks won't rekindle their recent weakness and take a tumble soon.

Regardless of whatever's in store, veteran investors know that any short-term dip is a long-term buying opportunity. Smart investors probably already have some of their favorite names lined up, in fact, ready to step into after any decent-sized pullback.

With that as the backdrop, here's a closer look at three dividend stocks that legendary investor Warren Buffett would arguably buy if and when the market crashes in the foreseeable future.

Coca-Cola

Coca-Cola (NYSE: KO) isn't just a dividend-paying name Buffett might like. He bought and held it in Berkshire Hathaway's stock portfolio for a long, long time. Indeed, it's the conglomerate's third-biggest position right now, worth a little more than $30 billion.

This enduring bullishness is certainly understandable. Coca-Cola has now raised its annual dividend payment for 64 consecutive years. Newcomers will be stepping in while the stock's forward-looking yield stands at a solid 2.7%.

Chevron

Speaking of stocks that Berkshire already owns, were he still its chief executive as well as its chief stock picker, Buffett would likely add to the conglomerate's existing stake in oil giant Chevron (NYSE: CVX) while its forward-looking dividend yield is 3.7%. He was regularly adding to this position, in fact, before stepping down as Berkshire Hathaway's CEO at the end of last year.

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Given the rhetoric regarding the planet's transition from fossil fuels to renewables, this seems like a pick with limited upside as well as a limited lifespan. The fact is, however, the world won't be weening itself from oil anytime soon. The International Energy Agency still believes daily consumption of crude will actually continue growing all the way through 2050. This of course bodes well for drillers and refiners like Chevron.

McDonald's

Last but not least, add McDonald's (NYSE: MCD) to your list of dividend stocks that would be smart buys in the event of a marketwide pullback.

Neither Buffett nor Berkshire Hathaway currently own it, but it checks off a lot of Buffett's selection criteria, so it would certainly be at home among Berkshire's holdings. These criteria include a clear competitive advantage (like the brand name), reliable cash flow, and management that's committed to shareholder returns. McDonald's brings all three to the table and more, including a forward-looking dividend yield of 2.4%.

You know it as a hamburger chain, and ostensibly, its fortunes are tethered to demand for its famous fast food.

That's not quite what this company is, though. McDonald's is first and foremost a rental real estate company, charging ever-rising, market-rate rents for the right to use its real estate. It just so happens that its tenants are franchisees, who collectively operate 95% of the company's restaurants and generate most of its highest-margin revenue.

The model clearly works. This reliable rental income regardless of the ebb and flow in demand for fast food is the big reason this company's been able to raise its per-share dividend payment in each of the past 49 years.

James Brumley has positions in Coca-Cola. The Motley Fool has positions in and recommends Berkshire Hathaway and Chevron. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.