Recession-Resilient Stocks: Why Coke and J&J Stand Out
The potential for a stock market crash is on investors' minds as geopolitical tensions and inflation concerns rise. To prepare, consider investing in recession-resistant stocks like Coca-Cola (NYSE: KO) and Johnson & Johnson (NYSE: JNJ), both of which have been around for over 100 years and have established themselves as leaders in their respective industries.
Coca-Cola's longevity can be attributed to its household name status and its defensive industry classification as a consumer staple. The company has increased its dividend payouts for 64 consecutive years, making it a Dividend King. This regular stream of income helps cushion market losses during downturns.
Johnson & Johnson, also a Dividend King with 64 consecutive annual payout raises, boasts a large portfolio of pharmaceutical products and is a leader in medical devices. The company's diversified product lineup and deep pipeline enable it to navigate challenges like patent exclusivity losses relatively well.