Considering these uncertain and volatile conditions, investors should look for stocks that pay a healthy dividend while operating a stable business that is proven to navigate recessions. The following three stocks would deliver returns even in a down market, thus reducing the likelihood that investors will be forced to sell a down position. Moreover, non-cyclical stocks such as these three tend to hold up better during recessions because their operational fundamentals are more stable.
Duke Energy (NYSE:DUK) owns and operates a utility infrastructure with 7.7 million retail energy customers and 1.6 million natural gas customers in six states. The stock outperformed the S&P 500 meaningfully in the 2008-09 Great Recession. Costco (NASDAQ:COST) is a warehouse discount retailer with a membership model that has performed well in prior recessions while offering some upside in good times. Costco's sales only declined by 1.5% in fiscal 2009, and the company was able to limit its layoffs. AbbVie (NYSE:ABBV) owns several massive-selling pharmaceutical drugs, including Humira, Botox, Venclexta, and Imbruvica. The company's heavy sales concentration in a small number of drugs is a concern, especially with Humira sales declining due to generic competition.
Source: Motley Fool
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