6 Dividend Stocks That Will Maintain Their Payouts in an Economic Downturn

It’s important to know that investing in dividend stocks is about consistency and the ability to pay even in the direst of economic circumstances. After all, this is the chief advantage that dividend stocks have over bonds. Bond coupons are not raised. If inflation rises, they cannot adapt, as dividends can. This is why it is almost always better to stick with dividend-paying stocks with a long history of increases.

These dividend stocks will very likely keep their payouts at the same or higher levels, given their history and cash flows. AT&T (T) clearly has the ability to fund its $1.11 dividend payout now that it has spun off Warner Bros Discovery (WBD). Exxon Mobil (XOM) refused to cut its dividend during the Covid crisis. Clorox (CLX), people will still use cleaning products during a recession. The Proctor and Gamble Co. (PG) has had 66 years of annual consecutive dividend increases, including a recent increase to 91.33 cents. Hormel Foods (HRL) has consistently raised its dividend over the last 50 years. Kroger (KR) has been paying higher dividends over the last 17 years.

Source: InvestorPlace

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