3 Recession-Proof Dividend Stocks with a Proven Track Record of Stability and Growth

In an era marked by geopolitical tensions, inflationary pressures, and economic uncertainty, has emerged as a critical strategy for income-focused investors. Defensive stocks-those in industries less sensitive to economic cycles-offer a dual benefit: consistent cash flow through dividends and the resilience to weather market downturns. This analysis highlights three such equities-PepsiCo (PEP), PPG Industries (PPG), and Hanover Insurance Group (THG)-each with decades of dividend growth, robust financial performance, and business models designed to thrive in volatile environments.

1. PepsiCo (PEP): A Staple of Consumer Demand

PepsiCo, a titan in the global food and beverage sector, exemplifies the power of a diversified business. Its portfolio includes iconic brands like Frito-Lay, Gatorade, and Quaker Oats, which cater to essential, recurring demand. According to a company report, PepsiCo's dividend has grown for 53 consecutive years, with the most recent increase in 2025 raising the quarterly payout to , a . This represents a since 2020 as reported by StockGuide, underscoring its commitment to rewarding shareholders even amid .

Financially, PepsiCo's resilience is evident in its 2024 revenue of , and innovation. While detailed 2025 financials are not yet public, its long-term strategy-focused on cost efficiency and -positions it to maintain profitability during downturns. For income investors, PepsiCo's and low volatility (beta of ~0.8) make it a cornerstone of a defensive portfolio.

2. PPG Industries (PPG): Industrial Coatings with a Defensive Edge

PPG Industries, a leader in and specialty materials, operates in sectors critical to infrastructure and manufacturing. Its recent third-quarter 2025 results highlight its adaptability: net sales rose to , a , driven by higher selling prices and volume growth in its segment. , reflecting disciplined cost management and .

PPG's dividend history further cements its appeal. The company has paid dividends since 1972, with the most recent 2025 payout at . While its yield is modest (around ), its (estimated at ~30% of earnings) ensures sustainability even during economic slowdowns. PPG's -focused on durable goods like aerospace and marine coatings-benefits from long-term infrastructure spending and global trade, making it a resilient play in uncertain markets.

3. Hanover Insurance Group (THG): A Low-Beta Insurance Play

Insurance companies often serve as defensive assets due to their stable premium income and long-term liabilities. Hanover Insurance Group (THG) stands out with a 21-year streak of dividend increases, including a recent hike to in December 2025. Its and reflect a conservative approach to capital allocation, prioritizing long-term stability over aggressive growth.

THG's low -far below the market average-highlights its ability to outperform during downturns. As a , it benefits from consistent demand for solutions, while its underwriting discipline and strong provide a margin of safety. For investors seeking income with minimal volatility, THG's combination of defensive characteristics and reliable dividends is hard to ignore.

Conclusion: Building a Defensive Income Portfolio

In a high-uncertainty market, the key to preserving capital and generating income lies in selecting companies with proven resilience, sustainable payout ratios, and low volatility. PepsiCo, PPG Industries, and Hanover Insurance Group each meet these criteria through their:
- Long-term histories (53 years for PEP, 21 years for THG).
- Resilient business models (essential , industrial coatings, and insurance services).
- Strong recent financial performance, including rising EPS and disciplined cost management.

For income-focused investors, these stocks offer a compelling mix of stability and growth, making them ideal anchors in a defensive portfolio.