3 Dividend Stocks to Anchor Your Portfolio Through a Recession

In an uncertain economic climate, dividend-paying stocks with recession-resistant traits offer investors both income and stability. Below are three top-tier companies that combine robust dividend histories, defensive sector positions, and proven resilience during past downturns—making them ideal holdings even as markets face headwinds in 2025 and beyond.

1. Procter & Gamble (PG): The Bedrock of Consumer Staples

Sector: Consumer Staples
Dividend Streak: 68 consecutive years of increases
Current Yield: 3.1%

Procter & Gamble, a titan of household essentials, has weathered every economic cycle since the Great Depression. Its portfolio includes indispensable brands like Tide, Pampers, and Gillette, which maintain demand even during recessions. During the 2007-09 financial crisis, PG’s sales grew by 4%, outperforming the S&P 500’s 38% decline.

Why It’s Recession-Proof:
- Essential Product Mix: 70% of its revenue comes from items like hygiene products and laundry detergents, which are non-discretionary.
- Global Scale: Operates in 180 countries, reducing reliance on any single market.
- Dividend Safety: PG’s payout ratio (dividends relative to earnings) remains below 50%, ensuring ample room for growth even if profits dip.

2. Enterprise Products Partners (EPD): Energy Infrastructure’s Steady Hand

Sector: Energy (Midstream)
Dividend Streak: 26 years of uninterrupted distributions
Current Yield: 6.5%

Enterprise Products Partners operates pipelines, storage facilities, and terminals critical to U.S. energy infrastructure. Unlike oil producers, EPD earns fees from transporting and storing commodities, shielding it from price volatility. During the 2007-09 crisis, it lost only 37%—a far better outcome than the S&P 500’s 55% drop.

Why It’s Recession-Proof:
- Contractual Cash Flow: 90% of revenue comes from long-term, fixed-fee contracts with minimum volume guarantees.
- Low Commodity Exposure: Even when oil prices collapse, EPD’s fees remain stable.
- Credit Strength: A BBB+ rating and a conservative payout ratio (45%) ensure financial flexibility.

3. Realty Income (O): The “Monthly Dividend Company”

Sector: Real Estate (REIT)
Dividend Streak: 56 years of monthly payments
Current Yield: 5.6%

Realty Income owns over 15,000 properties leased to businesses like Walgreens, 7-Eleven, and AMC Theatres. Its triple-net leases shift operational costs to tenants, while its portfolio spans industries that remain stable in recessions (e.g., drugstores, convenience stores). During the 2007-09 crisis, occupancy never dipped below 96%, and dividends grew by 3%.

Why It’s Recession-Proof:
- Diversified Tenants: No single tenant accounts for more than 3% of revenue, reducing risk.
- Inflation Hedge: Lease agreements often include rent escalators, protecting income during rising prices.
- Regulated Growth: REITs must distribute 90% of taxable income as dividends, ensuring steady payouts.

Conclusion: Anchoring Your Portfolio in Uncertain Times

These three stocks—PG, EPD, and O—represent a diversified yet cohesive strategy for recession resilience. Together, they span consumer staples, energy infrastructure, and real estate, sectors proven to outperform during downturns.

• Procter & Gamble offers a 3.1% yield with 68 years of dividend growth, backed by a fortress balance sheet.
• Enterprise Products Partners provides a high 6.5% yield, protected by its fee-based model and infrastructure dominance.
• Realty Income delivers a 5.6% yield with 56 years of uninterrupted monthly dividends, supported by recession-resistant tenants.

Historically, these companies have outperformed the broader market during crises. For example, during the 2007-09 crisis, PG’s stock fell just 12%, EPD dropped 37% (vs. the S&P’s 55% decline), and Realty Income lost 43%—still better than the market’s average.

While no investment is entirely recession-proof, these stocks combine high yields, long dividend histories, and defensive sector exposures to mitigate risk. For income-focused investors, they form a solid foundation to weather 2025’s uncertainties—and thrive in the long term.