Best Reliable Recession Stock

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Capital preservation is the goal of most people when investing. When there are signs of economic recession, investors tend to turn to investments that they are sure to survive the storm or work hard during the recession. Usually, companies that survive the storm of economic downturns usually deal with products that people depend on for a living.

Such stocks are usually the most reliable recession stocks and may outperform other stocks in most recession events. The company's stock may survive the economic downturn.


1. Coca-Cola (KO)

Coca-Cola is the world's largest beverage seller, with more than 3900 products. It has more than 500 brands. The company’s market exists in more than 200 countries/regions, with more than 24 million retail stores in these countries/regions. It has more than 21 brands and its sales exceed $1 billion. These brands include but are not limited to Dasani Water, Coke, Minute Maid Juice and Powerade.

Relying on the high credit rating of its anti-recession portfolio, the company is one of the few companies that is likely to survive the recession in a row. It is considered to be one of the safest consumer staples stocks that investors can invest in during an economic downturn.

2. Johnson & Johnson (JNJ)

The healthcare industry is another industry that continues to operate during difficult times such as the economic recession. Therefore, Johnson & Johnson is likely to be favored by this attribute in the healthcare industry. Johnson & Johnson is the world's largest healthcare group. It has more than 250 subsidiaries and operations in more than 60 countries.

In addition, its three business units support its business model, ensuring diversified earnings, revenue and cash flow. It is one of the few companies that has increased its dividend payment year by year. Therefore, it can survive hardships and continue to emerge. Investing in JNJ stock is a reliable way to effectively protect capital during economic downturns.

3. Kimberly-Clark (KMB)

Kimberly-Clark is a consumer staple that deals with household products, and is one of the companies that have demonstrated the ability to resist recession in the past. The company is a well-known brand that sells a variety of products, such as Scott paper towels, Cottonelle toilet paper, and Huggies diapers, and has market shares in more than 175 countries/regions around the world.

It is worth noting that KMB’s emerging markets account for more than 30% of its sales. It is worth noting that even during the economic recession, demand for its products continued, while its stock price remained stable. Therefore, it is one of the stocks that investors can rely on to protect their funds during a recession.

4. Procter & Gamble (PG)

The company was founded in 1837 and is one of the largest consumer staples companies in the world. It sells more than 65 products in more than 180 countries around the world. It has a strong brand portfolio, including 21 products, and annual sales of more than 1 billion U.S. dollars.

The company is one of the companies with an impressive record of dividend growth across Wall Street, and one of the few companies capable of weathering the storm of the recession. In the event of a recession, investors can safely buy P&G stock.

5. Altria (MO)

Altria (MO) is classified as a consumer staples industry and is another top company with the ability to withstand the test of recession. It is one of the best performing stocks in the past few decades, and this advantage is attributed to its business model. Consumers of Altria products are loyal to its brand, which significantly enhances its ability to withstand difficult times.

Other companies that may survive the recession and therefore invest in reliable stocks during the recession include Walmart, Dollar General, Pepsi, Consolidated Edison (ED), and Exxon Mobil (XOM).

Bottom line

Investing in stocks requires a thorough understanding of market dynamics. One of the key aspects is to understand the stocks that can withstand tough times, which will allow investors to save money during a recession.