The stock market is jumpier than a long-tailed cat in a room full of rocking chairs.
The tech sector’s been taking a beating lately, thanks to weak job numbers and the growing fear that the Federal Reserve’s going to start slashing interest rates, pushing the economy into a full-blown recession.
But here’s the thing: You don’t have to play their game. You’re smarter than that. You’re here because you want real, dependable income — dividends that hit your account like clockwork — not risky bets on the next hot tech stock.
Dividend investing is the ultimate contrarian strategy. When the market zigs, you zag! When others fear, you get greedy! These seven dividend stocks aren’t just recession-proof—they might actually thrive while others are panicking!
1. Coca-Cola (KO) – The Classic Dividend King!
Need I say more? I doubt many of you reading this remember a time when Coke wasn’t paying dividends. This is an absolute bedrock dividend company, with a track record of annual dividend increases for 62 YEARS! That long-term consistency is why income investors like Matt DiLallo have such confidence in Coke. “Coca-Cola should have no trouble continuing to supply investors with a rising stream of dividend income in the future,” he writes. “With its earnings on the rise and a strong balance sheet, Coca-Cola should have plenty of pop to continue pushing its payout higher.” Read more of Matt’s analysis here.
2. Verizon (VZ) – 5G is about to Change the Game
This isn’t just a telecom play, folks. This is an internet infrastructure play, and Verizon is about to dominate the 5G rollout. “Wireless subscribers of telecommunications titan Verizon Communications provide a reliable base of revenue and cash flow,” writes DiLallo, who highlights the company’s massive free cash flow. 5G services are about to become indispensable, and Verizon’s going to be raking in those subscription fees. It also boasts a 17-year track record of dividend increases. Read more of Matt’s analysis here.
3. Johnson & Johnson (JNJ) – Your Retirement Portfolio Needs This
Johnson & Johnson’s a blue-chip stalwart that’s been paying dividends longer than most of us have been alive. This company has weathered every storm you can imagine—wars, recessions, pandemics—and comes out the other side stronger than ever. They’re also investing in cutting-edge technology, so they’re not resting on their laurels. “The healthcare company is a financial fortress,” DiLallo writes. “It had an elite AAA bond rating (higher than the U.S. government). Johnson & Johnson ended the second quarter of 2024 with $25 billion of cash against $41 billion of debt. Meanwhile, it produced $7.5 billion of free cash flow in the period (more than enough to cover its $3 billion quarterly dividend outlay).” Read more of Matt’s analysis here.
4. British American Tobacco (BTI) – Don’t Overlook This Dividend Machine
Okay, I know some people are uncomfortable with tobacco stocks, and I get it. I really do. But folks, this is a money-making machine we’re talking about. They’re also pivoting hard to vaping and other “safer” alternatives. “BTI stock had been in a downtrend tied to faster-than-expected declines in its legacy cigarette business,” James Brumley writes. “However, the company has turned the corner. Its most recent earnings report easily exceeded expectations, and British American Tobacco reiterated its 2024 guidance.” Read more of James’ analysis here.
5. Hormel Foods (HRL) – The Ultimate Snack Food Stock
Remember the saying, “You gotta eat?” Well, folks, that’s why Hormel’s such a smart play. These guys make all those must-have snacks—from Spam to Skippy peanut butter to Jennie-O turkey. They’re also pivoting to healthier options, because they know those millennial consumers are all about organic and natural foods. “Hormel arguably has a more attractive stable of brands than Kellanova,” says Brumley, adding that the company is a Dividend King, “with a stunning 57-year track record of increasing its dividend annually.” Read more of James’ analysis here.
6. Hershey (HSY) – The Sweetest Dividend Play Around
Hershey is about as classic and dependable as it gets. As Warren Buffet famously said, “Nobody needs a brokerage account. Everybody needs chocolate.” And folks, he’s right! This company is going to keep raking it in. They also have a dividend history going back to 1930 with relatively consistent payouts since then. “Chocolate is a wonderful business,” Brumley writes. “There are only a handful of businesses that have significant market share in confectionery goods internationally, ensuring strong pricing power and profit margins for the industry. It’s also a recession-proof product category, as people tend to spend on sweets regardless of economic conditions.” Read more of James’ analysis here.
7. Diageo (DEO) – Cocktails and Dividends? Yes, Please!
This one’s for all you booze lovers out there! Seriously, these guys own a library of top-shelf liquor brands—Smirnoff, Captain Morgan, Johnnie Walker. As with Hershey, the alcohol business is recession-proof. People like to drink when they’re happy. They also like to drink when they’re sad. Diageo’s winning either way! As Brumley writes, “Diageo has underperformed in recent years. The pandemic caused many bars and restaurants to shut down, and more recently, supply chain disruptions and increasing input costs have pressured profit margins,” However, he adds that “shares now go for less than 18 times forward earnings. That’s a bargain, given that spirits companies are recession-proof highly profitable businesses that generally tend to trade closer to 25 times earnings in normal times.” Read more of James’ analysis here.
Don’t wait for the market to crash to start investing for income, folks! Get ahead of the game, snag these seven dividend giants, and start collecting your rewards.
But remember, this is just the beginning. Tomorrow, we’re going to dive into the world of muni bonds, where we’ll show you how to collect high yields AND avoid those pesky taxes! Stay tuned!