Preserving capital and generating safe income are core goals
in retirement. So not surprisingly, conservative investors often worry about
when the next recession will occur and how it will affect their portfolios.
Safe dividend-paying stocks can be an appealing choice for
retirees who desire a predictable income stream that can hold its ground
regardless of economic conditions and short-term stock price fluctuations.
In fact, over 240 dividend-paying stocks in our database
maintained or increased their dividends each year during the financial crisis
while also outperforming the S&P 500's 55% peak-to-trough plunge by more
than 20%.
In other words, there were some excellent recession proof
investments a risk averse income investor could have owned prior to the last
downturn. But what about the next recession?
In this article, we analyzed 20 of the best recession proof
dividend growth stocks. These companies have dividend yields near 3% or higher,
stable business models, solid balance sheets, and proven commitments to
maintaining and growing their dividends in all manner of economic, industry,
and interest rate conditions. Each stock also meaningfully outperformed the
S&P 500 during the financial crisis.
Simply put, these dividend growth stocks are worthy
candidates to consider as part of a diversified portfolio to help you sleep
well at night during the next recession, confident that your passive income is
as safe as it can be and likely to keep growing your wealth over time.
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