Preserving capital is a goal for most people when investing. When there are signs of a likely recession, investors tend to run to investments they are sure to weather through during the recession storm or strive during the recession. Typically, companies that withstand a recession storm often deal with products that people rely on for their livelihood.
Such stocks are usually the best recession reliable stocks and are likely to outperform other stocks in most recession events. The company’s stocks with assured probability to weather through an economic recession are here.
1. Coca-Cola (KO)
Coca-Cola is the largest beverage seller globally, with over 3900 products. It has over 500 brands. The company has a market presence in over 200 countries, where it has territories of over 24 million retail outlets. It has over 21 brands that enable it to generate over $1 Billion in sales. The brands include but are not limited to Dasani water, Coke, Minute Maid juices, and Powerade, among many others.
With a high credit rating to its recession-resistant portfolio, the company is one of the few likely to weather through the recession storm successively. It is considered one of the safest consumer staple stocks that investors can invest in when the economy falls.
2. Johnson & Johnson (JNJ)
The Healthcare industry is the other industry that continues to run during difficult times such as the recession. Johnson & Johnson is, therefore, likely to be favored by that attribute of the healthcare industry. Johnson & Johnson is the largest global conglomerate in medical care. It has over 250 subsidiaries that operate in more than 60 nations.
Moreover, it has three business segments supporting its business model, ensuring diversified earnings, revenue, and cash flow. It is one of the few companies increasing its dividend payment year to year. Therefore, it can endure tough times and emerge successively. Investing in JNJ Shares is a sure way to preserve capital productively during an economic downturn.
3. Kimberly-Clark (KMB)
Kimberly-Clark, which is in the consumer staples dealing with household products, is among the companies that have shown the ability to stand against recession in the past. The company is a household name that sells numerous products such as Scott paper towels, Cottonelle toilet paper, and Huggies diapers, with a market presence in over 175 countries worldwide.
Notably, the emerging market of KMB accounts for over 30% of its sales. It is noted that the demand for its products continues even during the recession while its shares remain steadfast. Therefore, it is one of the stocks investors can rely on to preserve their money during a recession.
4. Procter & Gamble (PG)
The company, which started in 1837, is one of the world’s largest consumer staples companies. It sells over 65 products in more than 180 countries in the world. It has a strong portfolio of brands which include 21 products that are responsible for generating more than $1 billion in sales every year.
The company is among the companies with impressive payout growth track records in the entire Wall Street and one of the few with the capacity to weather through a recession storm. Investors can safely buy the shares of P&G in the occurrence of a recession.
5. Altria (MO)
Categorized in the Consumer Staples industry, Altria (MO) is another top company with a proven ability to withstand a recession. It is one of the best-performing stocks in the last few decades, an advantage attributed to its business model. The consumers of Altria products are loyal to its brand, which significantly enhances its ability to withstand difficult times.
Other companies that are likely to withstand a recession and, therefore, reliable stocks to invest in in the event of a recession include Walmart, Dollar General, PepsiCo, Consolidated Edison (ED), and Exxon Mobil (XOM).
Investing in stocks requires thorough knowledge of market dynamics. One of the key aspects is to know stocks that can withstand tough times, which will enable an investor to preserve their money during economic recessions.