Recession-resilient stocks: List of defensive companies

Recession-resistant stocks represent resilient investments that historically outperform during economic contractions, featuring companies with essential products and robust balance sheets. They are primarily traded on exchanges like NYSE and NASDAQ, serving as defensive portfolio anchors. Despite market downturns, the recession stock segment, characterized by inelastic demand and pricing power, offers investors stability and consistent cash flows.

The market for recession-resistant equities is not defined by cyclical growth; it’s grounded in sustained demand for necessities. The main advantages of these stocks include:

• Demand inelasticity: Consistent consumption of essentials like food, utilities, and healthcare regardless of economic conditions.
• Pricing power: Ability to maintain margins through pricing adjustments during inflation.
• Dividend reliability: Strong history of maintaining and growing payouts through multiple business cycles.

The consumer staples giant Procter & Gamble and discount retailer Walmart exemplify this resilience – P&G maintained positive earnings growth during 3 of the last 4 recessions, while Walmart shares gained 15% during the 2008 financial crisis. Their business models thrive when consumers prioritize value and necessities. Investing in recession stocks provides ballast to portfolios during economic uncertainty.

Many recession-resistant names are dividend aristocrats. Johnson & Johnson has increased dividends for 61 consecutive years through multiple recessions, while NextEra Energy maintained payouts during every downturn since 1985. This explains why consumer staples stocks outperformed the S&P 500 by 10%+ in 2022’s bear market. Beyond staples, the category includes 3 key defensive sectors: healthcare (UnitedHealth), utilities (Duke Energy), and discount retail (Dollar General).

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The following table contains a list of historically recession-resistant stocks by economic downturn performance, primarily traded on U.S. exchanges (including companies with positive returns in ≥3 of last 4 recessions). The list includes only publicly traded companies, and the presented data (price, dividend yield) are regularly updated to reflect the current market situation.