Investing

Forget About a Market Correction: Baby Boomers Should Buy These 3 Bulletproof Dividend Stocks Now

Chris MacDonald

Published: March 12, 2025 3:49 pm

Market volatility can be unsettling for any investor. But for baby boomers entering retirement, preserving one’s wealth and generating steady income in retirement is of utmost importance. For those who pick their own stocks, this means that focusing on companies with the most pristine balance sheets and the ability to weather whatever economic storms are ahead is increasingly important. 

That’s mostly because we’re starting to see certain red flags pop up in the economy, signaling economic weakness could be more pervasive than previously thought. Trump’s tariffs have created significant volatility in the market, with the VIX surging to a yearly high as investors scramble to hedge their positions and seek greater defensive exposure.

For baby boomers looking to own stocks they can sleep well at night owning, there are a number of great options out there to consider. Here are three of the most bulletproof dividend stocks I think are worth exploring, particularly for those concerned about what the rest of 2025 will bring. 

Key Points About This Article:

• Recent market volatility has spooked many investors, with baby boomers entering or in retirement among the most concerned about where the market may be headed.
• For those looking to sleep well at night, a portfolio constructed of relatively safe blue-chip names like these three stocks may be worth considering. 
• Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here.

PepsiCo (PEP)

PepsiCo (NASDAQ:PEP) is among the leading global carbonated beverage providers. Alongside the company’s namesake Pepsi brand, the company produces, markets, and sells a range of other beverage and snack products into the market. Most investors are well aware of Pepsi and the company’s parabolic long-term chart. But with a dividend yield of 3.6% driven by robust long-term cash flow growth, investors looking for reliable and growing passive income in retirement have plenty of reasons to consider this company. 

Pepsi has seen strong global growth continue to underpin its stock price, with a premium multiple in the consumer discretionary space. Yes, Pepsi products can be considered discretionary. But I think there’s some significant brand value that drives the company’s premium multiple that needs to be considered. In bad times, are consumers going to be more or less likely to grab that bag of chips and a soda than in good times? I’m not sure. 

With a dominant positions in salty snacks and beverages, Pepsi remains a global juggernaut with among the most solid dividend yields and the best brands in the business. For those seeking a company with a solid dividend yield that’s likely to grow, and strong capital appreciation potential, PEP stock remains a top pick of mine I think is worth considering right now.

Agnico Eagle Mines (AEM)

There’s a reason why many top investors hold a small portion of their portfolio in gold, or gold-related companies. During times like these when inflation is relatively high and growth remains sluggish, gold prices tend to outperform.

Large global gold miners such as Agnico Eagle Mines (NYSE:AEM) have unsurprisingly outperformed over the course of the past two years. The company’s focus on gold exploration and production has positioned the company well for capital appreciation, though I think the company’s robust 1.6% dividend yield is something that gets overlooked by investors looking at exposure to this space. 

I think the company’s dividend has plenty of room to increase over time, which the company has done in the past. Special dividends are far from out of the question as well, particularly if gold prices continue to soar. Thus, I view this stock mostly as a play for capital appreciation, but with some solid dividend upside. For those seeking gold exposure, that’s a great thing. 

Agnico Eagle Mines is set to prioritize exploration and expansion in 2025, with a planned exploration budget of $290 million to $310 million. This investment is aimed at extending the life of existing operations and advancing key growth projects within its portfolio. 

With the company maintaining strong liquidity and cash flow, supporting exploration, this is a company that could see its production numbers soar, which should flow through to higher earnings (and a higher stock price) over time. This remains one of my top picks right now. 

Johnson & Johnson (JNJ)

With Wall Street volatility rising over Trump’s tariff policies, Johnson & Johnson (NYSE:JNJ) continues to stand out as a stable Dow stock worth buying here.

The company’s healthcare focus ensured steady demand, as people always need medicines and medical devices. Whether the economy is going up or down, this is going to be true. So, after spinning off its consumer health segment in 2023, I think J&J’s innovative medicine division is going to continue to generate more investor interest in this world where investors are increasingly seeking out safety.

That’s mostly because J&J’s medicine division drove nearly two-thirds of its revenue, benefiting from strong pricing power and high-margin brand-name drugs. This reliable cash flow fueled 35 consecutive years of adjusted operating earnings growth before COVID-19, highlighting J&J’s long-term stability.

Johnson & Johnson’s long-term success was partly driven by stable leadership, with only 10 CEOs in 139 years, ensuring consistent oversight of growth initiatives. Its valuation remained appealing, with a forward price-earnings ratio below 15-times. Perhaps most notably for dividend investors, Johnson & Johnson has been a dividend growth juggernaut. The company has maintained 62 consecutive years of dividend increases, with its share price currently implying a dividend yield of roughly 3%.