Tariffs, Uncertainty, Chaos -- These 2 Stocks Don't Care

During periods of increased uncertainty, there's been one elite type of company that investors have been able to rely on: Dividend Kings. Those are the companies that, no matter what outside market forces are throwing their way, have been able to increase their dividend payouts for at least 50 consecutive years.

In 2026, despite all the pressures they've faced from tariff uncertainty, elevated inflation, and higher interest rates, these two Dividend Kings are not only continuing their streak of boosting dividend payouts, but also have positive stock price returns this year: Coca-Cola (KO +0.58%) and Walmart (WMT +1.95%).

The income beverage play

There's a reason why Warren Buffett bought Coca-Cola stock in 1988 and never looked back; it's a reliable, cash-generating machine. As of June 20, Berkshire Hathaway's portfolio held 400 million shares, owning over 9% of Coca-Cola; the beverage producer made up 9.5% of Berkshire's total portfolio. With that number of shares, Berkshire will generate hundreds of millions of dollars in dividends each quarter from Coca-Cola.

Owning that amount of shares may not be realistic for everyone else, but it's just an example of the strength of Coca-Cola as an income investment for long-term shareholders. It has boosted its dividend payout consecutively for the last 63 years, and that dividend yields 2.6%.

Typically not known for stock price appreciation, Coca-Cola has performed well this year compared to the S&P 500; the S&P 500 is up over 9% while Coca-Cola shares are up over 13%. Still, an outperforming stock price shouldn't become an expectation, as the main benefit of owning Coca-Cola is the dividend payout that's reliably increased.

Coca-Cola can be a long-term portfolio addition, but that also doesn't exclude it from facing short-term pressures. Currently, it's trying to meet the needs of consumers of different income levels. It will need to continue meeting the needs of customers at different price points, as raising prices can create pushback and lead to stagnant or slumping sales.

Short-term volatility with long-term upside still intact

Walmart has earned its Dividend King crown by increasing its dividend payouts for 53 consecutive years. Compared to Coca-Cola, however, Walmart's dividend yield is significantly lower at 0.8% and may not seem as appealing an income investment. That said, the benefit of owning Walmart is that reliable dividend payouts are paired with significant potential stock price appreciation.

Over the last five years, the Walmart stock price has climbed by over 150%. That's partly thanks to its growing revenue streams and its embrace of technology.

One of those newer revenue streams is its Walmart+ subscription, which allows the retailer to generate recurring revenue without relying on customers visiting the store. But Walmart+ subscribers are also looking to get the most out of those memberships and are spending more, which is showing up in Walmart's results. In the company's fiscal 2027 first-quarter earnings call, CFO John Rainey said, "Walmart+ members generally spend 4x more than nonmembers overall, with 7x more e-commerce visits each year."

The retail giant is also seeing positive results with its artificial intelligence (AI) shopping assistant, Sparky. For customers who use Sparky, Walmart sees an average order value that's 35% higher than for non-Sparky users. In addition, in its Q1 of fiscal 2027, which ended April 30, Walmart saw a boost in revenue from its advertising business and from online sales.

The stock price has taken a hit recently as Walmart struck a cautious tone in that first-quarter earnings report and didn't raise guidance, but management is not deterred. "While there are certainly pressures on the consumer, let me reiterate, our business is strong. We are executing on the important strategic initiatives that are critical to our future sales and earnings growth," Rainey added on the earnings call.

Despite the stock price only climbing 5% on the year, it was outperforming the S&P 500 before that earnings report. On May 19, the stock's price was up 20% on the year while the S&P 500 was up more than 7%. And for long-term investors with patience, Walmart can continue to offer stock price appreciation and a reliable dividend payout, helping boost a shareholder's total returns.