During a recession, it is not time to change your entire investment plan. But if you need to rebalance, sell some losers, or if you have money to invest, which stocks to buy? Today we thought about giving you ideas of good recession performers.
This safe list includes a positive dividend triangle, PRO rating and Dividend Safety scores, payout and PE ratios, dividend yield, the chowder rule, and more!
- To have some dividend growth stocks that will be less impacted by a recession, we need to think about sectors that generally continue to perform well. Consumer Staples and the food industry is a good choices. Companies like PG, PEP and MRU.TO will continue to grow during a recession.
- The utility sector provides essential needs that people will have to pay for no matter the state of the Economy. Boring and steady like FTS and BIP are interesting in such an environment.
- Should investors be concerned about rising interest rates when it comes to utilities? Actually, most can pass the increase to their customers.
- The healthcare industry can also be a good place to pick some reliable dividend stocks. Think about ABBV and JNJ for instance.
- Healthcare facilities have their share of problems, though. Since the pandemic, they have shown higher expenses and a lower occupation rates.
- While Mike is not usually a fan of the Energy sector, he explains why the current market makes them attractive. He also discusses his favorite picks: ENB, TRP and CNQ.
- During a recession, there are important points to keep in mind. We share three of them that will help you stay the course.
Make sure your portfolio can go through the recession: Download the Recession-Proof Portfolio Workbook now!
Enbridge (ENB / ENB.TO) was part of our stock ideas for this episode. While it offers a yield over 6%, it also shows a payout ratio above 100%! Is it the end of the party for Enbridge or will you continue to get that nice dividend payment?
While Mike had other ideas in the Consumer Staples, Alimentation Couche-Tard remains another possibility. Here are his thoughts on the well-known convenience store!
The market has gone sideways for a while. There are also concrete signals that the worst is ahead. We could live in denial, but we chose to discuss why a recession may be upcoming and help you be prepared for the storm.
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This podcast episode has been provided by Dividend Stocks Rock.