I think it’s inevitable at this point that we are in a recession. The stock market has been on an epic bull run since 2009. Entering 2020 many were calling for a downturn. At that point Covid-19 Coronavirus wasn’t really on the radar. After this mess only time will tell if we’ll be in a great depression. If you have money to invest the best time is usually during an economic downturn. Here are 3 Recession Proof Dividend Stocks You Need to Buy Under $50 Per Share.
So what is a recession proof dividend stock? These are companies that pay out dividends despite what the economy looks like. Yes, these companies could suspend their dividend rewards but history has proven that for better or worse these stable giants kept paying shareholders.
Coca-Cola is my first recession proof dividend stocks you need to buy. This company is a global brand that has paid and increased dividends every single year for 56 years! They currently sell for $48.99/share and have a dividend yield of 3.35% Coca-Cola has a dividend safety score of 80%
Coca-Cola serves 3% of the world’s population with not only soft drink but juices, water, Powerade, Monster Energy drinks etc. The dividend king himself, Warren Buffett owns 6% of his portfolio in KO.
Hormel Foods (HRL)
My next recession proof dividend stocks you need to buy is Hormel Foods. They are a massive brand that can be seen at most national grocery chains. Brands that they own include Skippy peanut butter, Dinty More, Jennie-O, Spam and 47 others.
Hormel Foods has been paying a quarterly dividend every year since they went public in 1928. Right now Hormel is trading at $48.51/per share. Their dividend yield is currently only 1.97% but their dividend safety score is a 99%.
AT&T is the world’s largest telecommunications company specializing in mobile phones, wireless communications, DirecTV and more. This company is at the top of their industry and do business in Latin America as well.
AT&T has been paying increased dividends for an uninterrupted 34 years. Right now a share of their stock can be bought for 31.18 and pay out a handsome 6.89% dividend yield. AT&T has a dividend safety score of 65%
How Did I Choose These Stocks
These three stocks were chosen based on their price point, dividend yield, dividend safety score and their status as a Dividend Aristocrat. There are only 57 companies that qualify as a Dividend Aristocrats, an accomplishment not so easy to obtain. These 3 stocks are as close to a safe bet as you can get.
A good platform to get started with the stock market is Robinhood, especially if you plan on holding your investments long term. It’s an easy to use beginner friendly app. If you use the link above you’ll get 1 free stock up to $500 value. If you are looking for something more advanced so you can trade more frequently the Webull app may be your best bet. They offer 2 free stocks. 1 for signing up and another for funding your account. Both apps have 0 fees.
Comment down below your favorite dividend yielding stocks. If you are interested in learning more passive income ideas check out our article How to Make Money While You Sleep.
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