20 Good Recession Stock Picks

Recession Stock Picks

Investors are worried about a recession due to the Federal Reserve increasing rates and the Ukraine War. Recession stocks are good choices for a slowdown because they have stable dividends and good brand names. They are also concentrated in the retail, healthcare, and consumer staples sectors. These sectors tend to do well during a recession because Americans still need the products and services they sell. While many investors flee the market when the economy is slowing down, these stocks tend to do well during this time. The good thing about these stocks is that they are relatively safe and investors can sell them if they don’t like them.

In the past, investors have tried to time the market. While timing the market can prove to be profitable, many people have regretted their decisions and sold during the December 2018 dip. However, many stocks recovered during the January 2016 dip because oil prices fell due to expectations of a slowdown in China and global growth. As a result, the S&P 500 index has gained 50% since that time. If you don’t think that a recession is on the horizon, try buying these stocks while they are still cheap.

Recession Reality?

Every day the market is pointing more and more toward a recession, so investors should look for a company stock that has been around for a while. This company has historically paid dividends in weak market conditions, and its stock has increased its dividends in three recessions. And the company itself isn’t the only one in recession-proof stocks. For example, Wal-Mart is up 3% year to date. It too has taken a hit recently, but many stocks have lost more than 20% this year. And it’s hard to know if a stock will go up in a recession, but it certainly won’t hurt to keep an eye on it.

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The Rollins family owns 53.2% of the company, so it is likely to remain a long-term play. A family-controlled company, like McDonald’s, tends to think long-term. And they’re better able to weather a recession than a company with a short-term outlook. And O’Reilly Automotive is another company that seems to be recession-proof. So if you’re looking for a safe, high-yielding stock, consider McDonald’s.

The risk of a recession is not immediate, but most say it is likely. The Fed has only just begun tightening monetary policy, and it’s going to take some time for the gradual series of interest-rate increases to take effect. But there’s a good early warning sign: an inverted yield curve. Inversion of the yield curve typically marks the beginning of a recession. A negative spread between ten-year and two-year yields usually precedes recessions. However, if a recession is approaching, it’s likely that stocks will fall.

The 2001 recession lasted eight months and had a negative GDP for one quarter. The Great Depression lasted almost ten years and did not begin to recover until 1937. This is why it’s a good idea to own some of these stocks in a recession. If you’re looking for an inexpensive stock in a growing market, Walmart may be the right choice. Walmart is the bargain basement retailer. Its stock is relatively cheap and trades at a reasonable valuation of 23 times forward earnings and a 1.43% dividend yield.

List of 20 Recession Stocks

Ticker Company Fair Value Dividend Yield Beta 3-Year 3-Year Return
BBY Best Buy Co $98.37 4.50% 1.13 23.00%
MU Micron Technology $105.01 0.60% 1.42 96.30%
QCOM Qualcomm $179.54 2.20% 1.29 75.90%
RHI Robert Half International $118.28 1.90% 0.99 74.30%
CTRA Coterra Energy $31.22 1.90% 0.71 34.70%
CVX Chevron $170.08 3.30% 1.14 63.00%
XOM Exxon Mobil $92.86 3.80% 0.97 45.20%
PXD Pioneer Natural Resources $270.49 4.40% 1.3 95.70%
TTWO Take-Two Interactive 0.68 16.30%
BEN Franklin Resources $24.60 4.50% 1.16 -13.10%
COP ConocoPhillips $120.36 1.80% 1.28 88.70%
DVN Devon Energy $70.81 7.10% 1.56 167.00%
MCHP Microchip Technology $83.75 1.60% 1.55 67.30%
EA Electronic Arts $145.96 0.60% 0.6 30.90%
EOG EOG Resources $132.57 2.40% 1.17 48.70%
QRVO Qorvo $120.35 1.39 58.10%
SWKS Skyworks Solutions $152.64 2.10% 1.41 49.40%
TROW T. Rowe Price Gr $126.36 3.90% 1.22 29.50%
VRTX Vertex Pharmaceuticals $327.61 0.76 51.00%
TSN Tyson Foods $83.71 2.10% 0.66 14.50%

 

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