It’s always a good time to hold a resilient dividend income stock, especially one yielding more than 7%. On days like this, with markets rattled by tragic events in Iran, that income feels particularly reassuring.

Global markets are sliding and most holdings in my SIPP are in the red, apart from defence giant BAE Systems and oil major BP. Anxiety has been building for months, and not just over geopolitics. Fears of an AI bubble have knocked US tech stocks off their perch. Even Nvidia’s strong results failed to ignite its share price.

That reinforces why I like holding steady dividend payers from the FTSE 100. They’re rarely fashionable and won’t shoot the lights out, but with luck will keep compounding quietly but steadily year after year.

Standard Life shares are solid

Dividend stocks offer something tangible when markets wobble. Regular cash payments reward patience and make it easier to sit tight. Reinvesting those dividends when prices are weak buys more shares, increasing future income and amplifying long-term returns.

The key is to ignore daily volatility, automatically reinvest the income and let the total return compound over time. Some of my income holdings have done particularly well lately, including Lloyds Banking Group, M&G, and Standard Life (LSE: PHNX), until recently known as Phoenix Group Holdings.

Dividends and growth

Standard Life built its business by managing old life insurance funds that were closed for business, and using them to generate dependable long-term cash flows. That has supported a progressive dividend policy. Now it’s expanding into other areas of financial services, including the booming pension risk transfer sector.

Its shares are up a stunning 50% over the last year, something I didn’t expect when I bought the stock two years ago. The trailing yield was then 10%, which means my total return is about 60% in just 12 months. The trailing yield has fallen due to the rising share price, but it’s still a pretty punchy 7.25%.

The shares have dipped slightly today, and could fall further if Middle East tensions escalate. I have two consolations if that happens. First, I have no plan whatsoever to sell Standard Life and want to hold its shares for years or decades. That gives them plenty of time to recover. Second, my reinvested dividends will pick up more stock at lower prices, strengthening their long-term income potential.

Valuation and risks

Phoenix isn’t as cheap as it was. The price-to-earnings ratio has climbed to 16.7. Investors might consider buying if they’re seeking reliable cash flow rather than rapid expansion. Or they might want to wait, and see if today’s volatility offers a buying opportunity at a lower valuation.

There are risks. A prolonged market slump could hit the value of the £300bn assets it holds to back insurance risks. Dividends are never guaranteed and weaker profits over time would put pressure on payouts. No investment is without uncertainty. Building a diversified portfolio of at least 12 to 15 stocks can balance the risks.

Growth stocks have their moments. I hold those too. But right now, dependable earners like Standard Life look especially appealing. And there are plenty more top FTSE 100 dividend stocks out there, some with even higher yields.