Seeking Stability: Three Dividend Stocks for a Volatile Market

With the S&P 500 and Dow Jones grappling with interest rate uncertainty and pockets of economic data sending mixed signals, a classic defensive strategy is gaining traction: dividend investing. In times of volatility, companies that share profits directly with shareholders can provide a dual benefit of income and potential downside cushion.

"The hunt for reliable yield is back on the front burner," says Michael Thorne, a portfolio manager at Hartford Wealth Advisors. "But it's not just about the highest number. Sustainability and growth matter just as much in this environment."

From a broader screening of over 100 U.S. dividend stocks, three names present compelling, though varied, cases for income-seeking portfolios.

Virginia National Bankshares Corporation (NASDAQ: VABK)

Dividend Yield: 3.5%
Simply Wall St Dividend Rating: ★★★★☆☆

This Virginia-based community bank, with a market value of $214 million, exemplifies steady, if unspectacular, dividend growth. Its 3.54% yield sits comfortably, and more importantly, a decade of consistent payments underscores its reliability. With a conservative payout ratio of 41.6% backed by rising net income, the recently affirmed dividend appears secure. For investors prioritizing predictability over sky-high yield, VABK represents a bedrock option in the financial sector.

General American Investors Company (NYSE: GAM)

Dividend Yield: 10.5%
Simply Wall St Dividend Rating: ★★★★☆☆

Here lies the high-yield, high-caution play. This closed-end fund manager's double-digit yield is undeniably attractive, placing it in the market's top quartile. However, its payout history is a rollercoaster, with past cuts exceeding 20%. The company trades at a deep discount to estimated value and has announced a special $5.95 per share capital gains distribution for late 2025. "GAM is for the adventurous income investor," notes financial analyst Sarah Chen. "That yield is a siren song, but you must be prepared for potential volatility in the payout itself."

RLI Corp. (NYSE: RLI)

Dividend Yield: 4.6%
Simply Wall St Dividend Rating: ★★★★★☆

This property and casualty insurer, valued at $5.2 billion, combines a solid yield with a strong recent signal of confidence. Alongside its regular quarterly dividend, RLI declared a special $2.00 per share payout, capitalizing on robust earnings growth where net income more than doubled year-over-year in Q4 2025. Its low payout ratios suggest ample coverage. While its dividend history has patches of inconsistency, the current financial strength and management's capital return actions make a persuasive case for its sustainability.

Investor Reactions

David R., Retired Engineer: "Finally, a list that doesn't just chase yield. RLI's special dividend shows real shareholder alignment. I'm adding it to my watchlist for my income bucket."

Lisa Tran, Active Trader: "GAM's 10%+ yield is a trap waiting to spring. That payout history is a red flag parade. In this market, I'd take VABK's lower but safer yield any day. Capital preservation first!"

Mark Williams, Long-term Investor: "The banking sector exposure with VABK is interesting for regional stability. The analysis on payout ratios is key—it separates the sustainable payers from the mirages."

This analysis is based on historical data and fundamental analysis. It is not financial advice and does not consider your personal objectives or financial situation. Always conduct your own research or consult a professional advisor before making investment decisions. Simply Wall St holds no position in the mentioned stocks.