The “Magnificent 7” tech companies have been the stars of the stock market, together worth $14.7 trillion and often setting the pace for the S&P 500 Index ($SPX). But in 2025, the momentum has shifted.
The Nasdaq-100 Index ($IUXX) has dropped as much as 20% from its highs this year, as new U.S. trade tariffs and worries about the world economy make investors nervous. While tech stocks struggle, companies known for paying steady dividends are starting to get more attention from risk-averse investors looking for something safer.
Procter & Gamble (PG) and Walmart (WMT) are two companies that qualify. Procter & Gamble just hit 69 years in a row of raising its dividend, even while the market is shaky. Walmart also made news with a 13% dividend increase, the biggest in over 10 years, and has now raised its dividend for 52 straight years. Even with the S&P 500 falling 13% so far this year, Walmart’s stock is on positive ground.
With the big tech names losing some of their shine and steady companies like Walmart and Procter & Gamble holding strong, maybe it’s time to rethink where your money goes next. Is it time to make a change? Let’s dive in.
Procter & Gamble (PG)
Procter & Gamble (PG) makes everyday products like Tide, Pampers, and Gillette for people in more than 70 countries. The company has a long history of rewarding its investors: in April 2025, PG raised its dividend by 5% to $1.06 per share, making this the 69th year in a row it’s increased its payout, a streak that goes back 135 years.
This means investors get $4.03 per share each year, with a yield of 2.42%, which is a solid return for anyone looking for steady income even when the market is shaky.
PG’s ability to keep paying and raising its dividend comes from strong business results. In the most recent quarter, sales grew to $21.9 billion, up 2% from last year, and organic sales (which leave out currency changes and acquisitions) rose 3%.
Earnings per share were $1.88, up 2%, and the company brought in $4.8 billion in cash from its operations. PG used this cash to give back over $4.9 billion to shareholders through dividends and buying back its own stock.
PG stock is slightly negative for the year but up 4.5% over the past 52 weeks. PG’s market value sits at $400.1 billion, with a forward price-to-earnings (P/E) ratio of 24.83x. That's a premium to its peers, but in line with its own historical valuations - showing that investors are willing to pay a steady premium for PG's growth and reliability.
PG is also making smart moves to keep leveraging its brand and pricing power into the future. In March, it teamed up with the NBA Equipment Managers Association (NBAEMA), meaning NBA teams now use brands like Tide and Downy for their laundry. Earlier this year, Tide also worked with Marvel Studios’ “Captain America: Brave New World,” aiming to connect with younger shoppers and keep its brand popular.
Looking forward, analysts are predicting full-year earnings per share of $6.87 from PG, with the next quarterly earnings report set for April 24. The 26 analysts who cover PG stock rate it a “Moderate Buy” on average, with a mean price target of $179.96, a roughly 9% increase from where it is now.
Walmart Inc. (WMT)
Walmart Inc. (WMT) is the biggest retailer in the world, serving millions of people every day through its huge network of stores and a fast-growing online shop. In 2025, Walmart bumped up its annual dividend by 13% to $0.94 per share, making it the 52nd year in a row the company has raised its payout.
This shows just how serious Walmart is about sharing its success with investors, even when times are tough. The new dividend translates to a yield of about 0.94%, and with a payout ratio of 32.97%, it’s clear Walmart can easily afford these payments.
Last year, Walmart brought in $681 billion in revenue, up 5.1%, and made $28.6 billion in operating income. Online sales worldwide jumped 16%, and U.S. store sales grew 4.6%. In the latest quarter, Walmart’s revenue reached $180.6 billion, up 4.1%, and operating income rose 8.3%. These numbers show Walmart keeps growing and can keep raising its dividend, even when the economy is uncertain.
Walmart’s stock is up about 1% this year and has soared 53% over the past 52 weeks, outpacing the broader equities market. The company is valued at $747.3 billion, with a relatively elevated forward P/E of 35.58x, which means investors are willing to pay more for Walmart’s steady growth.
Walmart made some big moves this year, such as selling its Advanced Systems and Robotics business to Symbotic (SYM) to make its supply chain even better. It’s also working with JPMorgan Chase (JPM) to make payments easier for merchants and with MiMedia to bring more digital services to Latin America.
Even with inflation and new tariffs causing uncertainties, Walmart still expects sales to grow 3% to 4% and profit to rise up to 5.5% this year, with the next earnings report coming in May. Analysts are very positive, with the consensus among 39 that Walmart is a “Strong Buy” and setting an average price target of $107.79, which is 17.6% higher than where it trades now.
Conclusion
If you’re wary of the wild swings and sky-high valuations of the Magnificent 7, it’s time to give steady, proven winners like Procter & Gamble and Walmart a closer look. Both companies keep raising their dividends and finding new ways to grow, even when the market gets rocky. With their strong fundamentals and reliable cash flow, it’s likely their shares will keep trending up, slow and steady, but sure.
On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
