With some concerning economic news this week including rising unemployment claims and sinking retail sales, it might be prudent to start considering stocks that should hold up well in a weak economy. The beauty of buying companies that are resilient during a recession is that they have a chance to deliver decent returns in any economic environment and provide some stability to your portfolio. These are businesses with strong bottom lines and steady cash flows that have what it takes to deal with long periods of uncertainty.
While we don’t exactly know whether or not the economy is suffering a short-term downturn or if we are facing a prolonged recession, buying recession-proof dividend stocks can be an intelligent move for any investor. Keep reading on to learn about 3 recession-proof dividend stocks to buy now.
Kimberly-Clark Corp (NYSE:KMB)
When you are looking at companies that have a steady demand for their products and services, the consumer staples sector is a great place to start. Kimberly-Clark is a good example of a dividend-payer with static demand for its products, as it’s a massive company that sells household products in over 175 different countries. Some of the classic brands that Kimberly-Clark owns include Kleenex, Scott, and Huggies. People will always need things like tissues, paper towels, and diapers, which means investors can count on this company to deliver reliable earnings and stable sales.
Kimberly-Clark is a strong pick at this time thanks to its potential for solid sales growth in international markets, an area in which it has been steadily expanding. The company is also a dividend aristocrat that has increased its dividend for 48 consecutive years. The stock’s current 3.26% dividend yield is one of the highest among large-cap consumer staples companies. Kimberly-Clark’s forward P/E ratio of 16.85 means that the stock is a great value when compared to its peers. If we start to see a rotation into value stocks in the coming months, this is an investment opportunity that could pay off in a big way.
General Mills (NYSE:GIS)
Next up is one of the largest packaged foods manufacturers in the world, General Mills. This is another recession-proof company that has several well-known brands that generate consistent cash flows for long-term investors. Adding an industry leader that continues to grow its market share can pay off handsomely over the years. With strong brand names like Cheerios, Progresso, Pillsbury, Yoplait, and more in its product portfolio, this is a company that should prove to be very resilient during a recession.
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