3 Top Recession-Proof Dividend Stocks

Nobody likes a recession, especially when the stock market is at its peak and credit is so cheap. But the reality is that all boom times have to face an end. So if you’re an income investor, which are the top dividend stocks you should add to your portfolio if the economy runs out of steam? Well, the next recession may not be that far off. According to a recent survey by The Wall Street Journal, economists believe there is a 60% chance that the next U.S. President will face a recession. The logic behind this assessment is that the American economy has never expanded for more than a decade without a recession.

And if we are faced with a recession similar to the 2007–2009 downturn, when the S&P 500 lost about 50% of its value, your dividend stock portfolio will provide you a hedge in such a catastrophic scenario. Here are the top three dividend stocks which I believe are time-tested and recession-proof: Wal-Mart Stores, Inc. (NYSE:WMT), Procter & Gamble Co (NYSE:PG) and The Coca-Cola Co (NYSE:KO). If you’re worried about the U.S. economy and want to play safe then these top dividend paying stocks are your best bet. I won’t expect a huge upside from these dividend stocks in the days to come, but they’re a good hedge against recession, and won’t disappoint you when investors would be looking for safe-heavens.

Source: Income Investors

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