During the depths of the Great Recession in 2009, Warren Buffett said: “Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons.”
In other words, market crashes should be seen as great opportunities to buy the best stocks at discounted prices. If that happens, I’d scoop up more shares of Walmart (NASDAQ: WMT), Realty Income (NYSE: O), and Philip Morris International (NYSE: PM) without any hesitation.
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Walmart is an evergreen retailer
Walmart, the world’s largest brick-and-mortar retailer with over 10,800 stores and clubs across 19 countries, has raised its dividend for 53 consecutive years. Its forward yield of 0.8% might seem low today, partly because its stock has soared 155% over the past five years, but it has consistently raised its payout through wars, recessions, and other economic downturns.
Over the years, Walmart upgraded its e-commerce marketplace, used its stores to fulfill online orders, rolled out more curbside and same-day delivery options, matched Amazon’s prices, and launched its own Walmart+ service to challenge Amazon Prime.
Walmart also expanded overseas, opened more Sam’s Club stores to compete against Costco, and even launched its own advertising business across its physical stores, mobile app, and connected TVs. All of those efforts kept Walmart relevant as the retail sector faced seismic shifts in consumer spending and other existential challenges.
From fiscal 2026 (which ended this January) to fiscal 2029, analysts expect Walmart’s revenue and EPS to grow at CAGRs of 5% and 9%, respectively. Those growth rates are steady, but its stock doesn’t look cheap at 37 times next year’s earnings. If a market crash finally compresses those valuations, I’d gladly buy some shares of this evergreen retail stock.
Realty Income is a top-notch REIT
Realty Income — which owns more than 15,500 commercial properties across the U.S., the U.K., and Europe — is one of the world’s largest real estate investment trusts (REITs). As an REIT, it leases its properties to businesses and must pay out more than 90% of its taxable income to its investors as dividends to maintain a lower tax rate.
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Ever since its 1994 IPO, Realty Income’s occupancy rate has stayed above 96%. That’s because it primarily leases its properties to recession-resistant businesses such as convenience stores, drugstores, and discount retailers. In 2025, its occupancy rate rose 20 basis points to 98.9%, even as macro headwinds drove many of its top tenants to close some stores.
Realty Income is also one of the few REITs that pays monthly dividends. It’s raised its payout 134 times since its IPO, and it currently pays an attractive forward yield of 5.2%. It expects its adjusted funds from operations (AFFO) per share, which rose 2% in 2025, to grow another 3%-4% to $4.41-$4.44 in 2026. That will easily cover its forward dividend rate of $3.25.
Realty’s stock already looks cheap at 14 times this year’s AFFO per share, but a market crash could make its stock even cheaper while significantly boosting its yield. Therefore, I’d definitely accumulate more shares of this top-notch REIT if its stock stumbles.
PMI is an evolving tobacco company
Philip Morris International, one of the world’s largest tobacco companies, was spun off from Altria in 2008. After that split, PMI generated nearly all of its revenue overseas, while Altria remained in the U.S. market.
PMI might seem like a risky stock to buy as adult smoking rates decline worldwide. Still, it constantly raises its cigarette prices, cuts costs, and sells smoke-free products (including its iQOS heated tobacco products, e-cigarettes, and nicotine pouches) to offset that pressure.
In 2025, PMI’s smoke-free revenue grew 14% organically and accounted for almost 43% of its top line. From 2025 to 2028, analysts expect its revenue and EPS to grow at CAGRs of 7% and 10%, respectively, as it continues to expand its smoke-free portfolio.
PMI’s stock looks reasonably valued at 25 times this year’s earnings, and it pays an attractive forward yield of 3.1%. However, a market crash could reduce its valuations and make its dividend even more attractive for income-oriented investors. Therefore, I’d buy more shares of this defensive blue chip dividend stock if the broader market cools off.
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Leo Sun has positions in Altria Group, Amazon, and Realty Income. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, Realty Income, and Walmart. The Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy.
Market Crash: 3 Stocks I’d Buy Without Hesitation was originally published by The Motley Fool
