If the Stock Market Crashes, These Are the First 3 Dividend Stocks I Want to Buy

If the stock market were to experience a crash, I would be on the lookout for certain dividend stocks that have proven resilient and have a track record of increasing payouts. Coca-Cola (KO), Procter & Gamble (PG), and Waste Management (WM) are examples of such companies.

Coca-Cola, a leading consumer brand, has demonstrated durable and steadily rising cash flow, driven by volume growth and pricing power. The company has raised its dividend for 64 consecutive years, making it a Dividend King with over 50 years of consecutive increases. However, its current valuation, trading at nearly 30x earnings and a 2.2% dividend yield, is quite expensive.

I would prefer a lower share price around $80 to increase the dividend yield to around 2.7% and provide a more attractive valuation for long-term earnings growth.

Procter & Gamgle, with its portfolio of essential consumer brands, also qualifies as a Dividend King with 70 years of consecutive annual increases. While its recent performance hasn't been as strong as Coca-Cola's, it still offers a resilient business, growing dividend, and potential for steady earnings growth. At its current share price of around $170, trading at about 24x earnings, I would like to see its price drop to around $145 for better long-term returns.

Waste Management, a company that provides an essential service regardless of the economy, has shown solid results in recent quarters. Its revenue grew 6.3% in the third quarter, driven by rising prices and volumes. The company generates robust cash flows, allowing it to invest in growing its business while returning cash to investors through repurchases and dividends.

At its current share price of around $245, trading at around 28x earnings and yielding roughly 1.6%, I would prefer a lower price around $200 to increase the dividend yield closer to 2% and provide better potential for double-digit annualized total returns.