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Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →A stock-market correction—a drop of at least 10% from a recent index peak—will happen again at some point, but history cannot tell investors when. In an October 4, 2026 article, Matt DiLallo of The Motley Fool names Realty Income (NYSE: O), Procter & Gamble (NYSE: PG), and WM (NYSE: WM) as dividend stocks he would buy with the next correction in mind. Their recurring-revenue businesses and dividend records may support a long-term case; they do not guarantee income or protect share prices from falling.
What “inevitable eventually” does—and does not—mean
A correction is conventionally a decline of at least 10% from a recent market-index peak. The label describes the size of a decline after it happens; it does not predict that prices will keep falling or identify when the next decline will begin. Fidelity’s March 30, 2026 explainer says a 10% or 15% decline is not unusual and is not, by itself, a signal of further losses: A gameplan for market corrections.
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Fidelity quotes institutional portfolio manager Naveen Malwal: “Since 1980, the S&P 500 Index has experienced a decline of about −14% on average in any given calendar year.” That is an average within-year decline, not the frequency of 10% corrections. The Motley Fool article reports that MUFG counted 37 U.S. corrections since 1945—roughly one every 2.2 years—and that the latest was in April 2025. Those are figures attributed to MUFG by The Motley Fool, not a reason to conclude a correction is due.
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The three dividend stocks DiLallo favors
The picks span real estate, household products, and environmental services. That variety matters: the case for each rests on a different business model, and none should be assessed on yield alone.
#1 Best Overall
| Company | Business case | Evidence cited | Important risk |
|---|---|---|---|
| Realty Income (NYSE: O) | Real-estate income from a diversified portfolio of properties leased to tenants on long-term net leases | The Motley Fool reports outperformance in 11 of 13 corrections since the company’s 1994 listing, with average declines of 2.6% for Realty Income and 22.6% for the S&P 500 | Property, tenant, interest-rate, valuation, and equity-market risk; historical relative performance is not a forecast |
| Procter & Gamble (NYSE: PG) | Recurring demand for household and personal-care products may support cash generation across economic conditions | P&G said in July 2026 that it had paid dividends for 136 consecutive years and raised them for 70 consecutive years | Dividend history does not ensure future increases, and consumer demand does not prevent a share-price decline |
| WM (NYSE: WM) | Waste collection, recycling, medical-waste disposal, and secure information destruction provide services customers continue to need | The Motley Fool reports 23 consecutive annual dividend increases and a beta of 0.56 | Market, leverage, regulatory, operational, and valuation risk; cited figures are article-reported |
Realty Income: property rent and a monthly dividend
Realty Income owns retail, industrial, gaming, and data-center properties leased under long-term net leases. The Motley Fool’s October 2026 article says a high share of its rent comes from non-discretionary or service-oriented retail tenants, and reports that Realty Income outperformed the S&P 500 in 11 of 13 corrections since its 1994 listing. In the same analysis, its average drawdown was 2.6%, versus 22.6% for the index. These historical comparisons describe the periods selected and analyzed by the article’s author; they do not establish how the stock will behave in the next downturn.
The company’s investor-relations page describes monthly dividends and provides the dividend history, while warning that dividends may not always increase or be declared: Realty Income dividend history. Monthly payments can be useful for investors who value regular distributions, but they do not remove interest-rate, tenant, property, valuation, or stock-price risk.
Rank #2
Procter & Gamble: everyday products and a long dividend record
P&G sells household and personal-care products used repeatedly, which underpins DiLallo’s view that recurring demand can support cash flows and dividend capacity. P&G’s July 14, 2026 release declared a quarterly dividend of $1.0885 per common share, payable on or after August 17 to shareholders of record July 24. The company also said it had paid a dividend for 136 consecutive years and increased it for 70 consecutive years. These are company-reported figures, not a promise that payments or increases will continue: P&G declares quarterly dividend, July 2026.
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The dividend amount is one quarterly declaration, not an annual payment figure. Investors weighing the stock still need to assess its share price, business performance, and ability to sustain distributions; a long record does not make the shares immune to a correction.
Rank #3
WM: essential services, not an escape from market risk
Waste collection, recycling, medical-waste disposal, and secure information destruction are services that continue to be needed across a range of economic conditions. That business mix is the foundation of the defensive case in DiLallo’s article. He reports 23 consecutive annual dividend increases and a beta of 0.56. Those figures are attributed to the October 4, 2026 Motley Fool article; they are not independently confirmed here, and beta is a historical measure rather than a guarantee of lower losses.
Demand resilience does not insulate WM from operating costs, regulation, leverage, valuation changes, or broad market declines. Treat the service profile as one input in evaluating the stock, not as a promise of stable returns.
How to judge these stocks before a correction
A defensive business and a dividend record are only part of an investment case. Before buying, compare each company’s valuation and financial capacity with the risks particular to its sector, and decide whether the stock fits your time horizon and tolerance for losses.
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1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errors- Dividend sustainability: Look beyond a streak or payment schedule to the company’s cash generation and obligations. A past payment record does not guarantee a future dividend.
- Valuation: A resilient business can still be an expensive stock. Consider whether the price leaves room for disappointing results or changing investor expectations.
- Business exposure: Realty Income depends on tenants and property economics; P&G depends on consumer brands and product demand; WM depends on service operations and regulatory conditions.
- Interest-rate and market sensitivity: Real estate and dividend-paying equities can be affected by changes in financing costs and investor valuations, while all three remain exposed to market-wide selling.
- Portfolio role: Three individual stocks are not a substitute for diversification. Consider how much company- and sector-specific risk you are willing to take rather than assuming dividends will cushion a decline.
What the recommendations mean
These are DiLallo’s selections, not a guarantee or a personalized recommendation. The Motley Fool article discloses that DiLallo holds Realty Income and WM; it also says The Motley Fool has positions in and recommends Realty Income and recommends WM. The cited correction comparisons, WM beta, and WM dividend-growth count should therefore be read as reported analysis and data, not as assurances about future performance.
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