Desiring Durable Passive Income During an Economic Downturn? These Elite Dividend Stocks Have Hiked Their Payouts In Each of the Last 4 Recessions.
From Yahoo Finance: 2025-04-15 07:09:00
Economic forecasters are raising the odds of a recession, with Goldman Sachs now seeing a 45% chance and JPMorgan predicting nearly 80%. Recessions can lead to corporate profit declines and cost-cutting measures, including layoffs and dividend cuts.
Some companies, like ExxonMobil and Coca-Cola, have proven recession-resistant due to strong balance sheets and cash flows. Both companies have increased dividends throughout past recessions, with Exxon recently extending its streak to 42 years of annual payment increases.
ExxonMobil has been investing in transforming its business to boost earnings power and expand into lower-carbon energy. The company plans to invest over $140 billion into major capital projects through 2030, which, along with cost savings, should add $20 billion to its annual earnings capacity.
Coca-Cola recently increased its dividend payment by 5.2%, continuing a streak of 63 years of annual dividend increases. The company expects to produce $9.5 billion in free cash flow this year, more than enough to cover its dividend outlay. Coca-Cola aims for 4%-6% annual revenue growth and mid-to-high single-digit earnings-per-share growth.
ExxonMobil and Coca-Cola have consistently increased dividends during past recessions and are well-positioned to continue doing so in the future. Their track records make them attractive options for investors seeking a reliable income stream during economic downturns.