Recession proof dividends do not exist. There is no magical formula that has been proven to yield profits when a certain index, investment, or currency goes into a tailspin. And because it is impossible for anyone to predict how the economy will perform next, it is hard to say how much you should hold.
The only way to truly be sure of your portfolio’s future is to diversify and stay active in the market. That means diversifying by holding different assets, including cash, stocks, bonds, and real estate. The downside is that it is difficult to know when the best time to invest is, so you may need to learn some financial terminology and stock picking tools to get started.
Some great things to invest in include gold, oil, and agricultural commodities. Investing in these commodities will help you in a recession, as the prices will always be rising. However, if you have limited money to spend in these sectors you may want to consider using them as a hedge in case the economy goes into a tailspin. Just be careful not to become dependent on them for all your investments.
Long-term investment in stocks will usually pay off in the long term. But you will usually have to wait several years before you start to see an actual return. Dividends can be paid out in small increments at first, but over time your investment will grow over time. This allows you to make small payments now while waiting for large returns down the road.
Even if there is no guarantee that you will see an increase in your investment over time, there are ways to insure that you will be investing in a recession-proof stock. When looking for recession proof dividend stocks, you need to look for companies with low debt levels, high profit margins, high earnings, and reasonable growth potential.
There is no substitute for low dividend yield on stocks. In order to make your investment work for you, the stock price will have to be worth less than what you paid for it. A low dividend yield is very desirable. You can also choose stocks that have been in the market for a long time, meaning the amount paid in dividends has been consistent over the years.
If you are going to be investing in recession proof dividend stocks, you should look for companies that offer low maintenance and are well managed. You should also consider buying companies that offer a flexible buyback program. This is the best way to ensure that you will be able to sell your shares quickly if the market turns around.
Some of the best companies to invest in are the ones that are already well established in their field, like Wal-Mart or Apple. These companies have established themselves in their particular industries and have plenty of cash to spare to continue investing in research and development.
Investing in companies that are just getting started is always the best choice, especially in the beginning when the economy is booming. It’s important to look for companies that are growing, rather than just companies who are making their first investment in many years. The recession proof dividend stock market is ripe for the taking when there are high expectations, but not for immediate cash flow.
Recession Proof Dividend Stocks, Most Likely
While it’s impossible to note what dividend stock will for sure be recession proof, here are some of the “safer” dividend stocks.
Procter & Gamble (PG)
Dividend Growth Streak: 61 Years
Johnson & Johnson (JNJ)
Dividend Growth Streak: 56 Years
Dividend Growth Streak: 55 Years
Dividend Growth Streak: 49 Years
Leggett & Platt (LEG)
Dividend Growth Streak: 46 Years
Dividend Growth Streak: 45 Years
Dividend Growth Streak: 45 Years
Exxon Mobil (XOM)
Dividend Growth Streak: 35 Years
Dividend Growth Streak: 24 Years
Magellan Midstream Partners (MMP)
Dividend Growth Streak: 17 Years
Dividend Growth Streak: 12 Years