3 Blue Chip Dividend Stocks To Own In A Recession
As the global economy grapples with the impact of the coronavirus pandemic, investors are bracing for a potential recession. In such uncertain times, it’s essential to focus on high-quality stocks that can weather the storm and continue to pay dividends. Blue-chip dividend stocks are an excellent option for income investors seeking stability and consistency. These companies have a proven track record of paying dividends for decades, even during economic downturns. In this article, we’ll discuss three blue-chip dividend stocks that are well-positioned to perform in a recession.
1. Johnson & Johnson (JNJ)
Johnson & Johnson is a healthcare giant with a diverse portfolio of products and services. The company has a strong balance sheet, with $45.3 billion in cash and cash equivalents as of the end of 2019. Its consumer health segment, which includes products like Band-Aid and Tylenol, has been resilient during economic downturns. Additionally, the company’s pharmaceutical segment is expected to benefit from increased demand for prescription drugs during a recession. JNJ has paid dividends for 58 consecutive years and has increased its dividend for the past 57 years. The stock currently yields 2.5%.
2. Procter & Gamble (PG)
Procter & Gamble is another consumer staples giant with a wide range of products, including Tide detergent, Bounty paper towels, and Pampers diapers. The company has a strong brand portfolio and a loyal customer base, which makes it less susceptible to economic downturns. PG has paid dividends for 129 consecutive years and has increased its dividend for the past 63 years. The stock currently yields 2.2%.
3. PepsiCo (PEP)
PepsiCo is a food and beverage company with a diverse portfolio that includes snacks like Doritos and Quaker Oats, as well as beverages like Gatorade and Pepsi. The company has a strong cash flow generation capability, which allows it to maintain its dividend payments even during tough times. PEP has paid dividends for 48 consecutive
