FIVE Dividend Stocks To Recession Proof Your Portfolio
Every headline seems to be focused on Trump and the likely recession is policies will cause. This is from today (March 10, 2025) on CNBC’s website:
So, how can we invest to protect ourselves?
Key to investing during recessions is diversity. I know that’s a word that people can’t say anymore, but when it comes to your stock portfolio, diversity is THE most important word.
If you’re in your 50s or older, you should be reallocating money into bonds. This does NOT mean sell 100% of your stocks and put them 100% in bonds, though. It’s just something you should consider if you’ve already built your wealth and have been investing for 20-30 years. This video will help
If you’re 50 and under, you should continue to invest in the same ETFs we always talk about: one S&P 500 ETF, one technology ETF and one dividend ETF. Nothing needs to change. If you’re dumping a few hundred a month into these funds for the next 10-30 years, just stay the course. And if markets take a dramatic turn, consider adding more to your investments.
Investing during recessions can be HUUUUUGE wealth creators for retail investors.
HOWEVER, if you’re the sort of investor who prefers to own individual stocks, you might want to consider making sure your portfolio is insulated.
How?
Dividend stocks are a great place to start. Many high quality dividend companies have paid (and increased) their dividend for DECADES. Take Procter and Gamble for example. I bet after watching your stocks swing wildly, you’re reaching for that Pepto (made by PG).
Take a look at PG here. Their dividend safety grade is only available via a paid subscription to Seeking Alpha, however. If you’re interested, here’s a coupon.
Just because a company HAS paid a dividend for a long time doesn’t MEAN they’ll pay one forever. That’s why the dividend safety grade is so important. Walgreens, for example, paid a dividend for 48 years and then cut it entirely.
This is why fundamental analysis is so important. Use my fundamental analysis template here to research stocks. It’s actually free.
Here are five other high paying dividend companies you might want to research a little further to help insulate your portfolio.:
And if individual stocks aren’t your thing, SCHD, SPHD, and SPYD are all top quality dividend ETFs to consider (you only need one). You can use my ETF comparison template to research them here.
Outside of dividends, investors seeking safer returns during recessions often look to bonds, CDs, gold, real estate, and even just good ol’ fashion cash to have money on the sideline to buy up some fantastic investments on the cheap.
