13 Recession-Proof Stocks for Portfolio Safety (2024)

In uncertain economic times, investing in recession-proof stocks can provide stability and growth for your portfolio. These stocks are known for their resilience during economic downturns, making them attractive options for investors looking to protect their investments. In this comprehensive guide, we will explore 13 recession-proof stocks that are worth considering.

Everybody on Bay and Wall streets is using the R word these days, it’s always a good idea to hold some recession proof stocks. To protect your portfolio, we look at a mix of safe, defensive names plus more speculative consumer name if you want more risk asrecession proof stocks.

From healthcare and consumer staples to technology and real estate, we will cover a range of industries that have historically performed well during recessions. So, let’s dive in and discover some reliable options to weather the storm.

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Healthcare Recession-Proof Stocks: A Resilient Sector

During economic recessions, certain industries tend to fare better than others. One such industry is healthcare. The demand for healthcare products and services remains relatively stable regardless of the economic climate. People prioritize their health and well-being, making healthcare stocks a wise choice for recession-proof investments.

Let’s start with safety, and healthcare is safe. Here are two healthcare companies that have shown resilience in the face of economic downturns:

1. Johnson & Johnson (NYSE: JNJ)

is a global healthcare company known for its diversified portfolio of consumer health, pharmaceutical, and medical device products. With a strong focus on innovation and a wide range of essential healthcare offerings, Johnson & Johnson has weathered economic recessions in the past. The company’s solid financials and commitment to research and development make it an attractive investment option for those seeking stability in uncertain times.

(A Top Pick Aug 04/23, Down 11%) Talcum powder settlement offer going to plaintiffs' vote on July 26, needs 75% approval. If deal is accepted, overhang will be gone, and you have a chance to buy at cheapest valuation in 20 years at 13x PE. Now pure medical devices (huge demographic play) and pharma since…

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2. Abbott Laboratories (NYSE: ABT)

Abbott Laboratories (ABT-N) is a diversified healthcare products company that has demonstrated strong performance during economic downturns. The company’s broad portfolio, which includes diagnostics, medical devices, nutrition, and pharmaceuticals, positions it well for sustained growth. Abbott Laboratories’ focus on innovation and commitment to improving global healthcare make it a reliable choice for recession-proof investing.

Abbott Labs (ABT-N) — Stockchase

Outlook is fabulous. Recent lawsuits turning out fine. Would buy at $100/share.

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3. CVS Health Corp (CVS-N)

We’re talking healthcare stocks in the American sense, a country where universal healthcare doesn’t exist and where consumers pay for drugs and operations out of pocket. We’re also talking about a country (as most other countries) where obesity keeps reaching new levels and where the baby boomer army keeps marching into old age.

CVS Health Corp (CVS-N) 13 Recession-Proof Stocks for Portfolio Safety (8) is positioned well to benefit from these macros trends. The company operates a large pharmacy chain of more than 10,000 locations, an insurance business and a PBM through its Caremark operation. Caremark, a pharmacy benefits manager, manages prescription drug benefits for big insurers, large companies and Medicare. It is one of America’s top three PBMs.

The best thing about CVS stock is that it’s a recession proof stock.

Dipped on its benefits business. Stable, much more broadly diversified than WBA. Way ahead of the curve on getting into homecare. Becoming a one-stop, end-to-end healthcare business. Generating free, excess cashflow that they're using for acquisitions without having to issue more shares. Dividend is more than secure, seeing share buybacks again.

13 Recession-Proof Stocks for Portfolio Safety (10)stockchase.com

Consumer Staples Recessin-Proof Stocks: Everyday Necessities

Consumer staples are products that people need on a daily basis, regardless of the economic climate. These products, such as food, beverages, household goods, and personal care items, tend to be in constant demand, making the companies that produce them more resilient during recessions. Here are two consumer staples companies worth considering:

4. The Procter & Gamble Company (NYSE: PG)

Procter & Gamble is a multinational consumer goods company that manufactures and distributes a wide range of popular household and personal care products. The company’s diverse portfolio of well-known brands, including Pampers, Tide, Gillette, and Crest, has positioned it as a leader in the consumer staples industry. Procter & Gamble’s focus on essential products and its ability to adapt to changing consumer preferences make it a reliable choice for recession-proof investing.

It yields 2.5% and shares are up 15% in the last 6 months. Don't chase this, but he likes it.

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5. The Coca-Cola Company (NYSE: KO)

The Coca-Cola Company (KO-N) is a global beverage company that has been a household name for over a century. With its iconic brands and extensive distribution network, Coca-Cola has consistently demonstrated resilience during economic downturns. The company’s diversified product portfolio, which includes carbonated beverages, juices, and water, provides a stable revenue stream even in challenging times. Coca-Cola’s strong brand recognition and global presence make it an attractive option for recession-proof investing.

Did you know there are 2 Coca-Cola stocks?

Read our KO vs co*kE stock post to learn about the difference between Coca-Cola Consolidated (co*kE-Q) and The Coca-Cola Company (KO-N).

Coca-Cola Company (KO-N) — Stockchase

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Technology Recession-Proof Stocks: Adapting to Changing Needs

Technology companies, especially those in certain sectors, have proven to be resilient during economic recessions. As society becomes increasingly dependent on technology for communication, entertainment, and productivity, certain tech companies have the potential to thrive even in challenging economic conditions. Here are three technology companies worth considering:

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6. Microsoft Corporation (NASDAQ: MSFT)

Microsoft (MSFT-Q) is a technology giant that has demonstrated resilience during economic downturns. The company’s diverse product offerings, including software, cloud services, and hardware, have positioned it well for sustained growth. Microsoft’s focus on innovation, strong financials, and broad customer base make it a reliable choice for recession-proof investing.

Microsoft Corp (MSFT-Q) — Stockchase

It has done well and is making record highs, so the stock could be split. It has done nine splits with the last one being 20 years ago. If it fell back to the $420's that could be considered quite normal but sell if it goes below $400. Buy 65 Hold 5 Sell…

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7. Adobe Inc. (NASDAQ: ADBE)

Adobe (ADBE-Q) is a leading software company known for its creative and digital experience solutions. As businesses and individuals increasingly rely on digital tools for communication, design, and marketing, Adobe’s products have become essential for many industries. The company’s strong market position, recurring revenue model, and focus on innovation make it an attractive option for investors looking for recession-proof technology stocks.

Adobe Systems (ADBE-Q) — Stockchase

He regrets selling this way too early and expects it to come back this year based on their AI-driven software. But he wouldn't build a huge position.

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8. Apple Inc. (NASDAQ: AAPL)

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Apple Inc. is often considered a recession-proof stock due to several factors. One key reason is its brand loyalty, which allows it to maintain consistent revenue streams even during economic downturns. Apple’s diversified product portfolio, including iPhones, MacBooks, iPads, and services like Apple Music and iCloud, provides multiple channels of income, insulating it from sector-specific slowdowns.

Furthermore, the company has a robust balance sheet with significant cash reserves, enabling it to navigate challenging periods without drastic cost-cutting measures. Additionally, Apple’s ability to innovate keeps consumer interest high, ensuring continued demand for its products. While no stock is entirely immune to market fluctuations, Apple’s strong fundamentals and consumer loyalty make it a relatively safer bet during economic uncertainty.

Apple Inc (AAPL-Q) — Stockchase

There will be an upgrade cycle to rival that of the iPhone 6 which offered a bigger screen. The new phone will feature AI.

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Real Estate Recession-Proof Stocks: Essential Infrastructure

Certain segments of the real estate industry have proven to be more resilient during economic downturns. Companies that own essential infrastructure, such as data centers and telecommunication towers, can benefit from increased demand for digital services and connectivity. Here are two real estate companies worth considering:

9. Digital Realty Trust Inc. (NYSE: DLR)

Digital Realty Trust (DLR-N) is a real estate investment trust (REIT) that owns and operates data centers worldwide. With the increasing demand for digital services and cloud computing, data centers have become critical infrastructure for businesses and individuals. Digital Realty Trust’s global presence, strong financials, and focus on sustainable operations position it as a reliable choice for recession-proof investing in the real estate sector.

Digital Realty Trust (DLR-N) — Stockchase

Second-largest data centre REIT globally. Record industry leasing last quarter, 4 times as much as a year ago. Tenants are big tech, with lots of capital to put into data centres to support cloud rollout. Coming AI boom, will benefit. Pricing power. Over 5% internal growth annually, could be higher. Modest premium to NAV, and…

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10. American Tower Corporation (NYSE: AMT)

American Tower Corporation is another REIT that owns and operates telecommunication towers worldwide. As the demand for wireless connectivity continues to grow, telecommunication towers play a crucial role in supporting communication networks. American Tower Corporation’s extensive tower portfolio, stable revenue stream, and strategic partnerships make it a strong contender for recession-proof investing in the real estate sector.

American Tower (AMT-N) — Stockchase

Is up 14% in May. REITs have fallen as interest rates rose. But cell phone towers are an international growth story, because there needs a lot of investment before rolling out 5G.

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Recession-Proof Stocks with Dividends

Investors seeking stability and income during economic downturns often turn to dividend-paying stocks. These stocks provide a regular stream of income through dividend payments, even when the stock market is volatile. Here are two dividend-paying stocks worth considering for recession-proof investing:

11. Realty Income Corporation (NYSE: O)

Realty Income Corporation, often referred to as “The Monthly Dividend Company,” is a REIT that specializes in single-tenant, net-leased commercial properties. The company’s portfolio includes retail, industrial, and office properties leased to a diverse range of tenants. Realty Income Corporation’s long history of consistent dividend payments, monthly dividend distribution, and focus on stable cash flow generation make it an attractive option for investors seeking recession-proof stocks with dividends.

Realty Income Corp (O-N) — Stockchase

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12. Coca-Cola Consolidated, Inc. (NASDAQ: co*kE)

Coca-Cola Consolidated is the largest independent Coca-Cola bottler in the United States. The company distributes and sells a variety of Coca-Cola beverages, including carbonated soft drinks, juices, and water. Coca-Cola Consolidated has a long history of paying dividends and has consistently increased its dividend payouts over the years. The company’s strong brand association, established distribution network, and commitment to shareholder returns make it a reliable choice for investors looking for recession-proof stocks with dividends.

Did you know there are 2 Coca-Cola stocks?

Read our KO vs co*kE stock post to learn about the difference between Coca-Cola Consolidated (co*kE-Q) and The Coca-Cola Company (KO-N).

Coca-Cola Consolidated, Inc. (Bottling) (co*kE-Q) — Stockchase

Allan Tong’s Discover Picks Any discussion of Pepsi inevitably invites comparisons to co*ke and not just about taste. Both soft drink producers have beaten their last four quarters with co*ke most recently in late July coming in at $0.70, just beating the street’s $0.67. Revenues of $11.30 billion beat the expected $10.57 billion. co*kE stock…

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Canadian Recession-Proof Stock

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13. Intact Financial (IFC-T)

Switching back to safe, defensive, boring yet dependable is this Canadian insurer. Intact (IFC-T) is rooted in the P&C (property and casualty) side of insurance which is as stable as it gets. Intact occupies nearly a quarter of market share. The company made a major acquisition in the U.K. and Ireland to expand in those regions. The company boasts a robust balance sheet and raises its dividend annually.

Intact Financial (IFC-T) — Stockchase

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Conclusion

In uncertain economic times, investing in recession-proof stocks can provide stability and growth for your portfolio. By focusing on resilient industries like healthcare, consumer staples, technology, and real estate, investors can weather economic downturns and mitigate risks.

Additionally, dividend-paying stocks offer a regular stream of income, providing financial stability even in challenging market conditions. Remember, while historical performance can provide guidance, each recession is unique, and past performance does not guarantee future results.

Q: What industries are recession-resilient?

A: From healthcare and consumer staples to technology and real estate, we will cover a range of industries that have historically performed well during recessions.

13 Recession-Proof Stocks for Portfolio Safety (2024)

FAQs

What are the safest stocks during a recession? ›

The best recession stocks include consumer staples, utilities and healthcare stocks. Consumers can't do without these companies, no matter how bad the economy gets.

What's the best way to recession-proof your investment portfolio? ›

How to Recession-Proof Your Portfolio
  1. Diversification of Your Investments. You've heard the saying, don't put all your eggs in one basket. ...
  2. Invest in Real Estate. Buying up all the real estate during a recession might be tempting. ...
  3. Buy Shares in Defensive Sector Funds. ...
  4. Consider Precious Metals. ...
  5. Build An Emergency Fund.

What are the best dividend stocks during a recession? ›

Some of the best dividend stocks to consider for a recession include The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP).

Is Berkshire Hathaway recession-proof? ›

Berkshire Hathaway (BRK-A, BRK-B)

The last one on the list of recession-proof stocks is Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B). Currently, most of Warren Buffett's holdings are in massive blue-chip stocks that should weather any economic environment.

Where not to invest during a recession? ›

Most stocks and high-yield bonds tend to lose value in a recession, while lower-risk assets—such as gold and U.S. Treasuries—tend to appreciate. Within the stock market, shares of large companies with solid cash flows and dividends tend to outperform in downturns.

Where is my money safest during a recession? ›

Still, here are seven types of investments that could position your portfolio for resilience if recession is on your mind:
  • Defensive sector stocks and funds.
  • Dividend-paying large-cap stocks.
  • Government bonds and top-rated corporate bonds.
  • Treasury bonds.
  • Gold.
  • Real estate.
  • Cash and cash equivalents.
Nov 30, 2023

What stocks recover the most after a recession? ›

Top investments coming out of a recession
  • Cyclical stocks. Cyclical stocks are virtually the definition of stocks that get hit hard going into a recession, as investors anticipate a peaking economy and begin to sell them. ...
  • Small-cap stocks. ...
  • Growth stocks. ...
  • Real estate. ...
  • Consumer staples. ...
  • Utilities. ...
  • Bonds.
Oct 18, 2023

What are the best dividend stocks to buy and hold forever? ›

10 Best Dividend Stocks to Buy
  • Exxon Mobil XOM.
  • Verizon Communications VZ.
  • Johnson & Johnson JNJ.
  • Comcast CMCSA.
  • Medtronic MDT.
  • Duke Energy DUK.
  • PNC Financial Services PNC.
  • Kinder Morgan KMI.
Jun 3, 2024

What is the most recession-proof industry? ›

Historically, the industries considered to be the most defensive and better placed to fare reasonably during recessions are utilities, health care, and consumer staples.

Are there any recession proof stocks? ›

The bottom line on recession-proof stocks

There are no fully recession-proof stocks. Some sectors, such as consumer staples, health care and utilities stocks, have historically done better than the broad market during recessions.

Has brk b outperformed s&p 500? ›

NYSE: BRK.

B -0.40%) CEO Warren Buffett is widely considered a legend on Wall Street, and for good reason. The conglomerate's portfolio has substantially outperformed the benchmark S&P 500 since Buffett became CEO in 1965.

Who will take over Berkshire Hathaway after Warren Buffett? ›

Warren Buffett's succession plan names vice chairman Greg Abel to succeed the Oracle of Omaha. Abel, who is the chair of Berkshire Hathaway Energy, has overseen the non-insurance operations of Berkshire Hathaway since 2018, including things like utilities and BNSF Railroad.

Is it best to hold stocks during a recession? ›

It becomes a bit more important to focus on top-quality companies in turbulent times, but, for the most part, you should approach investing in a recession in the same manner you would approach investing any other time. Buy high-quality companies or funds and hold on to them for as long as they stay that way.

Who makes money during a recession? ›

Companies in the business of providing tools and materials for home improvement, maintenance, and repair projects are likely to see stable or even increasing demand during a recession. So do many appliance repair service people. New home builders, though, do not get in on the action.

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