Want a stock that will help you weather the storm during bad times and ride the rising tides during good? Look no further than these three recession-resistant consumer goods stocks. From January 2008 through February 2009 the S&P 500 fell over 49%. Investors view utilities as safe haven stocks during recessions. The Utilities Select ETF (XLU) fell 39% over the same time period. At the same time, the Consumers Staples Select ETF (XLP) fell just over 30%. The critical point: The consumer staples sector outperformed the S&P 500 by 19 points and utilities by 10 points in 13 months.
Consumer staples stocks tend to have smaller losses during recessions while still matching overall stock market gains during bull markets. The three consumer staples stocks below all have long dividend histories that prove they are shareholder friendly. Each stock is a member of the Consumer Staples Select ETF. Further, each of the three stocks below outperformed the Consumer Staples Select ETF from January 2008 through February 2009, during the height of the great recession: General Mills (GIS), Wal-Mart (WMT) and Colgate-Palmolive (CL).
Source: The Street
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