With Recession Chances Higher After Trump's Tariffs, Here Are 2 Dividend Stocks I'm Loading Up On

2 days ago 4

Stefon Walters, The Motley Fool

Thu, Apr 17, 2025, 5:45 AM 5 min read

The newly announced tariffs caused the banal marketplace to plummet successful the pursuing days, and different connection began to circulate much and more: recession. Concerns astir however caller tariffs could impact prices, proviso chains, and economical maturation person caused galore radical to judge a recession is much apt to happen. JPMorgan adjacent precocious raised its recession probability to 60%.

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Even arsenic recession chances increase, I'm not shying distant from the market. The pursuing 2 dividend stocks are worthy considering careless of marketplace conditions.

Even arsenic the broader marketplace dropped pursuing the tariff announcements, Coca-Cola's (NYSE: KO) banal trended successful the other direction. It's present up implicit 14% twelvemonth to day arsenic of closing connected April 10.

Part of Coca-Cola's caller emergence is owed to investors looking for "safe" stocks, with truthful overmuch uncertainty successful the marketplace and economy. There's nary wholly recession-proof stock, but Coca-Cola is arsenic recession-resistant arsenic you'll find. It has rock-solid financials, a world-class organisation network, and products that merchantability careless of economical conditions.

When wealth is tight, radical chopped backmost connected a batch of expenses. They clasp disconnected connected updating their electronics, buying caller clothes, eating out, and different frivolous spending. They don't usually halt buying Coca-Cola's products.

There person been instances erstwhile Coca-Cola's gross has slowed oregon dropped (like during the COVID-19 pandemic), but for the astir part, its concern is built to upwind immoderate ups and downs the system throws its way.

Revenue aside, the existent entreaty of Coca-Cola's banal is its dividend. It pays retired a $0.51 quarterly dividend, with an mean output of astir 2.9% implicit the past 12 months. You whitethorn not beryllium capable to power oregon foretell banal terms movements, but Coca-Cola's dividend is arsenic reliable arsenic it comes. It has accrued its yearly dividend for 63 consecutive years, a feat that lone 8 companies person surpassed.

When uncertainty is high, you privation to put successful companies that supply stableness (and ideally, income), which Coca-Cola provides.

AT&T's (NYSE: T) banal has been a pleasant astonishment implicit the past 12 months, up implicit 64%. That's a bully alteration from the stock's conflict successful the years starring up to its caller run.

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