By US stocks could see pressure this week after Iran struck US bases in Qatar in retaliation for President Trump’s airstrike on Tehran’s nuclear facilities.
Amidst the geopolitical backdrop that seems to be worsening by the day, investors could find some stability in dividend stocks as they are historically viewed as a remarkable hedge against volatility.
Here are the top three income-producing stocks that we believe are worth owning amidst escalating tensions between the US and Iran.
Note that all three mentioned below currently yield more than 1.5%, have a consensus overweight rating (or better), with mean targets indicating potential upside of more than 10% from current levels.
AbbVie Inc (NYSE: ABBV)
AbbVie currently pays a lucrative dividend yield of 3.5% that makes it a good place to hide for investors on the lookout for ways to insulate their portfolios from the US-Iran conflict.
ABBV shares remain an exciting investment proposition for the back half of 2025 on the strength of the company’s financials as well.
In late April, the pharmaceutical behemoth reported better-than-expected results for its fiscal Q1 and raised its guidance for the full year.
Additionally, AbbVie has recently disclosed plans of investing more than $10 billion in the US to boost its local manufacturing capacity – an initiative that may also help it stand tall in the wake of Trump’s new tariffs.
Coca-Cola Co (NYSE: KO)
Despite a geopolitical environment that continues to deteriorate with the passage of each week, Wall Street continues see upside in KO shares to $79.55 on average, indicating potential for a 16% rally.
While Coca-Cola is a consumer-facing business that should, by definition, be prone to a relatively more pronounced hit from the tariffs – its financials have so far been able to show resilience in 2025.
More importantly, James Quincey, chief executive of the beverage giant, even said the potential impact of Trump tariffs was “manageable” in the company’s latest earnings release.
And a 2.9% dividend yield makes Coca-Cola stock an even better investment in the midst of rising tensions in the Middle East.
Procter & Gamble Co (NYSE: PG)
Procter & Gamble is a prime defensive stock to own amidst escalating US-Iran tensions as it boasts a global footprint that offers stability even during times of geopolitical turmoil.
Resilient consumer staples demand helped Cincinnati-headquartered P&G beat earnings estimates in its latest reported quarter as well.
Note that Procter & Gamble stock is currently down more than 10% versus its 52-week high – so it’s attractive in terms of valuation at the time of writing as well.
Top it off with a 2.66% dividend yield and a mean price target of about $176, and you have a world renowned stock that looks reasonably attractive to buy amidst a worsening geopolitical backdrop in 2025.
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