3 Investments With Solid Yields Powering Through Market Weakness

Within many parts of the stock market, investors have had a rough go of it so far in 2026. The S&P 500 is down over 5% on the year, and the index is not far off from being down 10% from its 52-week high. Crossing this barrier would put the market in “correction territory."

Amid this, some parts of the market are exhibiting considerable strength and providing meaningful dividend yields to go along with their appreciation. Let’s dive into three such investments and gain perspective on the market’s ability to recover from significant drawdowns.

XLE Surges Alongside Oil

In 2026, by far the best sector in the market to have an overexposure to is energy. A commonly used proxy for the energy sector’s performance is the Energy Select Sector SPDR Fund (NYSEARCA: XLE). On the year, XLE is up by approximately 40%. The fund also holds a dividend yield of approximately 2.4%, more than double the overall S&P 500’s yield near 1.1%.

This comes as the energy sector is essentially synonymous with the oil industry. With the price of crude having soared dramatically in 2026, oil stocks are having a field day. The vast majority of oil’s rise during the year is attributable to the conflict in Iran. Iran has effectively shut down the Strait of Hormuz, through which around 20% of the world’s oil supply normally travels. Reports indicate that traffic through the strait is down 90% to 95% since the start of the war.

How much longer the Strait remains at a standstill will be significant for the outlook on XLE. S&P Global Ratings recently said it believes West Texas Intermediate crude will peak in March and April. It sees prices falling to $65 by the fourth quarter, compared to near $100 now. However, due to very high levels of uncertainty, its conviction in this forecast's conviction is low.

New Look Verizon Is Winning Over Investors

The 2026 performance of Verizon Communications (NYSE: VZ) has been among the best in the communications sector. In fact, Verizon’s total return near 25% is the highest among all communications stocks in the S&P 500 Index. Verizon shares shot up after the company’s latest earnings report and have continued to ride higher and higher.

With its new CEO, Dan Schulman, the company is making a significant shift in strategy. This includes relying much less on price increases to drive revenue growth. This, in turn, should help increase customer loyalty and new customer acquisition.

The firm cut costs by $5 billion in Q4 2025, reducing its workforce by 13,000 employees. Verizon is also leaning harder into a “convergence” strategy that has been successful at rival AT&T (NYSE: T). The goal is to get customers to bundle fiber home internet and wireless coverage, increasing both revenue and loyalty. Overall, the market clearly seems to be buying into the new Verizon.

Analysts continue to be optimistic, with updated targets indicating solid upside ahead. Targets updated in March average around $55.40, significantly higher than the MarketBeat consensus target of $50.32. This updated average target suggests the stock could rise 10% over the next 12 months to go along with VZ’s hefty 5.5% dividend yield.

Analysts Eye Continued Recovery in Beer Giant STZ

Last up is Constellation Brands (NYSE: STZ), the maker of various Mexican beers like Modelo, Corona, and Pacifico. The stock has delivered a total return of approximately 10% in 2026 and is up nearly 20% from lows reached in late 2025. This comes despite the fact that shares took a big hit in mid-February as the company appointed a new CEO.

The company’s latest earnings report was significantly better than expected, with the firm posting a large beat on adjusted earnings per share. Although beer volumes have been dropping, Constellation has been doing a good job of protecting its margins.

Analysts are eyeing further upside ahead for STZ. The MarketBeat consensus price target near $179 implies more than 15% upside. The average of targets updated after the company’s last earnings report is slightly lower, near $176.

Notably, Constellation holds a solid dividend yield of approximately 2.7%. Additionally, Berkshire Hathaway (NYSE: BRK.B), founded by the great Warren Buffett, continues to hold a sizable stake in STZ. Despite lowering its shares held by 3% in Q4 2025, Berkshire held a $1.8 billion position in Constellation as of the end of the year.

Simple but Effective: Don’t Dismiss the S&P’s Historical Strength

These three investments are displaying resilience amid a weak overall market. Still, it is important to remember that over time, the S&P 500 has shown to be resilient as well. Notably, from 1980 to 2025, the S&P 500 experienced an average intra-year drawdown of 14%. However, in 35 out of those 46 years, or 76% of the time, the index finished in the green. This demonstrates that selling the index amid declines can often lead to missing out on a significant recovery.

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