Dow 30,000? Buy These 3 Stocks Now for the Coming Dow Crash


  • Expecting the DJIA to plunge 20% to 30,000 is par for the course when investing but you can soften the blow with these three stocks to buy.
  • 3M (MMM): The industrial conglomerate is emerging healthier from its recent woes of legal liabilities and slashing its dividend.
  • Procter & Gamble (PG): The consumer products giant offers a portfolio of well-known name brands that consumers turn to again and again.
  • Coca-Cola (KO): The beverage stock if an all-weather company whose drinks portfolio are seen as an affordable splurge when times get tough.
Stocks to Buy - Dow 30,000? Buy These 3 Stocks Now for the Coming Dow Crash

Source: Pavel Ignatov /

The Dow Jones Industrial Average briefly flirted with 40,000 before pulling back. It now stands under the 39,000-point level but was moving higher again. This bull market is showing incredible resilience, which is why investors should prepare for the coming crash with these stocks to buy.

Market corrections and even bear market collapses are part of the investing cycle. Stocks that go up tend to fall, too, and fall hard in the process. But that’s before they dust themselves off and begin their march higher again.

Every single bull market over the past 100 years has been brought to a halt by a correction or crash. They just happen, and that is why you should be prepared for them. The great thing about downturns is they don’t last long (about 16 months on average) and they let you buy stocks at reasonable or even cheap prices again.

The resulting bull markets that follow tend to wipe away all vestiges of the rack and ruin the bear market caused. It’s why over the past century the Dow’s trajectory has been ever upward at about a 10.5% average rate. 

But by not choosing the right stocks to buy, you can be left wandering in the wilderness for an extended period. Below are three stocks you should consider buying today in preparation for a 20% decline in the Dow, which would bring it down to 30,000.

3M (MMM)

3M logo on top of a corporate building. MMM stock
Source: JPstock /

Industrial conglomerate 3M (NYSE:MMM) isn’t a stock typically associated with buying as a defensive position. Shares have offered horrible returns over the last three, five and 10-year time frames and have badly trailed the DJIA.

Yet 3M today isn’t the same company it was a decade ago or even last year for that matter. While legal liabilities have weighed heavily on 3M stock in recent periods, the company is looking to settle the claims and may soon have that troubling past behind it. At the same time, it spun off its consumer products division into Solventum (NYSE:SOLV) and slashed its dividend in half, freeing up much-needed cash.

A streamlined company with fewer headwinds and less demand on its financial position is a stock worth considering. The company continues to invest in research and development, an effort that has produced innovative products throughout its long history, allowing it to charge a premium for them. It should allow 3M to grow its top line by at least low single-digit percentages for an extended period.

While that might not sound exciting, 3M is a mature business that ought to help investors through difficult times. And though it cut its dividend, it still pays one that yields an attractive 3% annually. Shares are up 12% this year as a result and ought to provide needed ballast to your portfolio if the Dow tumbles. 

Procter & Gamble (PG)

Procter & Gamble Union Distribution Center. P&G is an American Multinational Consumer Goods Company
Source: Jonathan Weiss /

In a similar vein, Procter & Gamble (NYSE:PG) is a rock-solid addition to a portfolio. It hasn’t had the legal woes of 3M and its stock handily outperformed the Dow but don’t expect it to act like some artificial intelligence-driven tech stock.

Procter & Gamble is also a mature business that provides for the everyday needs of consumers. It’s what makes the consumer products giant such a good stock to own. Because its products are consumables, people need to return again and again to buy them. This sort of forced repeat-trip business model ensures PG stock sees continuous, steady growth.

Owning a portfolio of name-brand goods also means consumers understand the quality they will find when buying. In times of turmoil, they can choose its products knowing what they will get. Like 3M, it can also charge a premium, though that will admittedly work against it in high inflation periods like we’re in now.

Procter & Gamble also has a long history of paying a dividend. In fact, it has paid a dividend every year since 1890 and has increased the payout for 68 consecutive years, making it a Dividend King. But unlike the industrial conglomerate, there are no outsized claims against its free cash flow (FCF). Although its FCF payout ratio has risen to 65%, it is well within its historical norms and remains secure.

Coca-Cola (KO)

a line of Coca-Cola (KO) cans

That’s also why Coca-Cola (NYSE:KO) stands out as one of the stocks to buy ahead of the Dow tumbling to 30,000. It has made a payout since the 1920s and began a campaign of continuous annual increases beginning in 1967. With its 57-year history of dividend hikes, the beverage stock has grown the dividend at a compounded annual growth rate (CAGR) of 4.8% for the past decade. The payout yields 3.1% annually. Coke also announced a new increase earlier this year of 5.4%. 

Coca-Cola is, not surprisingly, the most valuable food and beverage brand globally. Yet it has invested heavily in other non-carbonated categories for years. Today it also owns juices, tea, water and energy drinks, all with significant market share in their respective fields. They also possess greater growth potential than soda.

Still, a can of soda can be seen as an affordable splurge in tough times, which is why Coke holds up so well during recessions. The DJIA plunging 20% would likely signal the start of a new dark period making the beverage stock a powerful addition to your portfolio.

On the date of publication, Rich Duprey held a LONG position in MMM, SOLV, PG and KO stock. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.

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