Lately, the market has been delivering more plot twists to investors than a season of Severance. Solid tech earnings come in tandem with pulled guidance from public-facing companies like airlines and retailers. Economic data points to consumer and job market resilience, yet public sentiment continues to sour, and business surveys show inflation expectations continuing to creep higher.
And of course, erratic tariff policy looms over stocks like a storm cloud, threatening to puncture profit margins across a wide range of companies and sectors.
The S&P 500 has rallied more than 15% off its April 8 low following President Trump’s reciprocal tariff pause, but uncertainty keeps the February all-time high at arm’s length.
When the future becomes cloudy, the search for growth must be balanced with security. Value investing pioneer Benjamin Graham emphasized the ‘margin of safety’ when picking stocks, which means searching for assets and trading for less than their intrinsic value.
Searching for Safety Amidst Market Volatility
Investors tend to flock to less volatile assets like blue-chip stocks when the only certainty is more uncertainty. Blue chips often meet Graham’s margin of safety definition through their large market caps, strong sales growth, market dominance, and a history of dividend increases.
Today, we’ll look at three stocks built to ride out a storm of uncertainty.
These stocks were chosen based on fundamental factors like valuation, earnings potential, and dividend strength, along with technical metrics like beta that measure volatility in relation to the broader market. If you remain unconvinced by this recent stock rally, consider these three companies for further inspection.
Philip Morris International: Foundations for a Smoke-free Future
Tobacco companies like Philip Morris International Inc. (NYSE: PM) are often popular stocks in uncertain periods thanks to their generous dividends and minimal volatility; PM fits both categories with a 3% yield and 0.52 beta. However, the firm is also ahead of the pack in future growth plans thanks to its priority on smokeless products.
Philip Morris manufactures the popular ZYN nicotine pouches, along with other smokeless products like IQOS that heat tobacco to create an aerosol instead of burning it to produce smoke.
Smokeless products are seen as a healthier alternative to cigarettes and vaporizers, and PM generated more than 40% of its Q1 2025 revenue from smokeless sources. ZYN was an especially hot seller, with shipments increasing by more than 50% in the quarter.
The company aims to sell 100% smoke-free products by 2030.
PM shares have jumped to new all-time highs in 2025, posting over 40% year-to-date gains. The valuation is loftier than that of competitors like Altria Group Inc. (NYSE: MO), but PM is better positioned for the smokeless transition ahead, which explains the stock’s outperformance.
PM expects earnings growth of more than 10% over the next 12 months (while MO’s decline), and the dividend payout rate is projected to drop to a manageable 68% in 2026, likely preceding an 18th consecutive annual payout increase.
Cardinal Health: A Bright Light in a Sunless Sector
The healthcare and medical sectors have been lagging behind the broader market for years, but Cardinal Health Inc. (NYSE: CAH) has been one of the few healthcare stocks that have shown strength. The stock punched through a new all-time high in early 2024 and continues to rally, with shares up more than 25% in 2025.
Cardinal Health has a strong dividend with a DPR under 35% and a 29-year track record of payment increases, but the earnings strength is what has investors taking notice.
The company reported fiscal Q3 2025 earnings earlier this month and posted a solid beat. EPS exceeded analyst estimates by 9% and showed year-over-year growth of over 13%.
Revenue slightly missed expectations, but the firm raised full-year 2025 EPS guidance from $7.90 to a $8.05 to $8.15 range. Following the report, analysts at Morgan Stanley and Robert Baird boosted price targets to $166 and $170, which would indicate an upside potential of 9% to 16% from current levels.
Alphabet Inc: Growth at a Value Price
Google-parent Alphabet Inc. (NASDAQ: GOOGL) might not be what investors first envision when thinking of blue chips, but it’s not 2017 anymore, and Alphabet has an enticing valuation to match the growth potential of mega-cap tech.
The stock trades at less than 20 times earnings, the first time since 2012 that GOOGL shares have traded with a sub-20 P/E. With a beta of 1.01, its volatility is nearly even to the S&P 500, and the company even paid its first dividend last year, indicating future emphasis on rewarding shareholders along with R/D reinvestments.
Alphabet has been the subject of recent DOJ investigations, and comments by Apple’s Eddy Cue about AI replacing traditional search have negatively impacted the stock this month.
However, the company posted strong top and bottom-line earnings on April 25, and the average price target amongst analysts covering the stock is $199, representing potential upside of over 15%.
Strong Earnings and Safe Dividends: An Elixir for Market Uncertainty
Investing in blue chips is a great way to limit downside risk in volatile markets, but it's not a replacement for due diligence or personal risk tolerance analysis. Always research specific companies before buying shares to ensure they fit your investment plan.
Use resources like MarketBeat’s dividend calculator to aid your decision-making, and always consult an advisor before making any changes to your portfolio.