While all stocks are affected by economic downturns, there are some that fare better than others in economic recessions. Such stocks are called recession stocks. Recession stocks mostly belong to stable and well-established companies that continue to provide regular dividends to investors and generate revenue and earnings growth, even in times of financial crisis.
At times, recession stocks also belong to companies that are fairly new but have managed to recession-proof themselves. Recession stocks have stable cash flows and growing income streams. They continue growing, albeit slowly, even when other companies and the whole economy are struggling.
|NEE||NextEra Energy, Inc.||$78.32||26.75%||153.6B|
|DUK||Duke Energy Corporation||$100.08||14.84%||77.0B|
|D||Dominion Energy, Inc.||$79.42||0.86%||64.0B|
|SO||The Southern Company||$65.10||14.11%||69.0B|
|AEP||American Electric Power Company, Inc.||$87.95||3.47%||43.7B|
|XEL||Xcel Energy Inc.||$71.12||8.88%||38.3B|
|PEG||Public Service Enterprise Group Incorporated||$62.92||23.13%||31.8B|
|ED||Consolidated Edison, Inc.||$78.11||-7.14%||26.8B|
|WEC||WEC Energy Group, Inc.||$97.16||0.79%||30.6B|
|DTE||DTE Energy Company||$138.16||34.97%||26.8B|
|AWK||American Water Works Company, Inc.||$161.43||26.23%||29.3B|
|ELAN||Elanco Animal Health Incorporated||$30.56||27.33%||14.4B|
|PCRX||Pacira BioSciences, Inc.||$64.45||69.47%||2.8B|
|IRWD||Ironwood Pharmaceuticals, Inc.||$10.81||8.64%||1.7B|
|SUPN||Supernus Pharmaceuticals, Inc.||$31.30||72.74%||1.7B|
|HCA||HCA Healthcare, Inc.||$201.51||92.80%||67.9B|
|UHS||Universal Health Services, Inc.||$146.52||49.36%||12.5B|
|EHC||Encompass Health Corporation||$87.28||28.88%||8.7B|
|THC||Tenet Healthcare Corporation||$56.18||202.04%||6.0B|
|SEM||Select Medical Holdings Corporation||$36.69||153.03%||4.9B|
|COST||Costco Wholesale Corporation||$371.26||19.99%||164.3B|
|DG||Dollar General Corporation||$215.16||20.10%||51.5B|
|JNJ||Johnson & Johnson||$165.18||7.97%||434.9B|
|PG||The Procter & Gamble Company||$134.63||12.76%||331.5B|
|EL||The Estee Lauder Companies Inc.||$312.09||88.03%||113.2B|
|ENR||Energizer Holdings, Inc.||$50.51||47.35%||3.5B|
|KO||The Coca-Cola Company||$54.44||19.18%||234.6B|
|CPB||Campbell Soup Company||$49.53||-2.50%||15.0B|
|GIS||General Mills, Inc.||$62.03||3.06%||37.8B|
|MKC||McCormick & Company, Incorporated||$91.42||19.21%||24.4B|
|HSY||The Hershey Company||$162.24||13.23%||33.6B|
|MDLZ||Mondelez International, Inc.||$59.55||14.04%||83.7B|
|BUD||Anheuser-Busch InBev SA/NV||$70.23||68.78%||118.7B|
|MO||Altria Group, Inc.||$46.50||22.98%||86.1B|
|PM||Philip Morris International Inc.||$94.01||28.68%||146.5B|
|LVS||Las Vegas Sands Corp.||$58.33||42.16%||44.6B|
|MGM||MGM Resorts International||$40.75||206.62%||20.2B|
|WYNN||Wynn Resorts, Limited||$124.38||77.61%||14.4B|
|MLCO||Melco Resorts & Entertainment Limited||$18.73||29.62%||9.1B|
|CZR||Caesars Entertainment Corporation||$94.12||527.05%||19.6B|
|XOM||Exxon Mobil Corporation||$55.27||31.19%||234.0B|
|VZ||Verizon Communications, Inc.||$57.28||-1.22%||237.0B|
Factors to Consider Before Investing in Recession Stocks
Investors must first consider the sector the recession stocks belong to. The companies in recession-resistant businesses like healthcare, gold, renewable energy, consumer staples, etc. end up generating steady returns for their investors irrespective of the economic conditions. Additionally, recession stocks of companies that sell discounted wares hold up well too.
Investors should also perform a detailed fundamental analysis of recession stocks to understand the dividend yields, business models, and strength of balance sheets.
However, investors must also remain aware that recession stocks also come with their set of risks. Their resistance to recession is not fool-proof. Therefore, the portfolio should remain diversified with a balanced mix of recession stocks and other stocks.
Which Recession Stocks Should I Buy?
A large number of recession stocks trade on the stock exchanges. All these stocks ensure that they maintain their dividend payment and overall growth in the times of recession. Overall, recession stocks help investors conserve their capital and stay afloat in rocky times.
Among the many recession stocks, we have aggregated a list of the best recession stocks for you to pick from. The sector to which recession stocks belong remains the first aspect to be considered, followed by stability, growth, and dividend payments.
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