HomeMarket NewsFortifying Your Portfolio: 3 Resilient Stocks for an Impending Recession

Fortifying Your Portfolio: 3 Resilient Stocks for an Impending Recession

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Prepare for economic turbulence ahead by considering these robust investment options that have historically weathered financial storms.

The Unbreakable Giant: Walmart (WMT)

WMT Stock

When tough times approach, consumers flock to the sanctuary of low pricesβ€”the essence of the retail behemoth, Walmart (NYSE: WMT). Weathering seven recessions since its IPO in 1970, WMT stock has consistently thrived post-economic downturns, scaling to new heights each time.

Since inception, Walmart’s cumulative returns have been beyond impressive. A modest $5,000 seed planted at its IPO would have burgeoned into over $74 million today. Anticipating a recession in 2024, investors can rely on Walmart’s unwavering performance.

Comprising approximately 4,700 U.S. stores and serving 255 million shoppers weekly both online and in-store, Walmart reported a 6% sales surge in 2023, accumulating $648 billion, with a 5.6% year-over-year same-store sales growth (excluding fuel). Venturing into the advertising arena, Walmart’s ad business accelerated by 28% last year, targeting a hefty $6 billion haul by next year.

With a robust 32% surge in operating income last year, Walmart stands as a well-oiled machine, ready to safeguard your portfolio amidst a looming recession. Furthermore, offering a 1.36% dividend yield, Walmart adds extra zest to your investment concoction.

Streaming Success: Netflix (NFLX)

An image of a phone with the Netflix logo on the screen, laying next to a container of popcorn with popcorn splayed across

Source: xalien / Shutterstock

Streaming powerhouse Netflix (NASDAQ: NFLX), though not as seasoned as Walmart in tiding over recessions, emerged unscathed from the 2008 financial crisis and flourished during the recent pandemic-induced turbulence.

With consumers prioritizing budget-friendly home entertainment during economic downturns, Netflix is primed to shine. The streaming titan boasts over 260 million paid subscribersβ€”a colossal figure in the global entertainment realm. In contrast, Disney (NYSE: DIS) has been grappling with subscriber declines and financial setbacks with Disney+.

While NFLX stock doubled in the past year, experts project a promising 23% earnings growth over the next five years, making Netflix a compelling choice for investors bracing for an economic shake-up.

Medical Marvel: Abbott Laboratories (ABT)


The Resilience and Growth of Abbott Labs in the Healthcare Sector

Adaptability During Times of Economic Downturns

One can’t help but marvel at the fortitude displayed by Abbott Laboratories (NYSE: ABT) throughout its journey, with each recession akin to battle wounds that ultimately lead to victory. Weathering the storms of economic turmoil, Abbott has emerged not only unscathed but triumphant, proving its mettle in the face of adversity.

Thriving in Unprecedented Times

The COVID-19 outbreak served as a litmus test for many companies, separating the wheat from the chaff. For Abbott Labs, this period became a testament to its resiliency and ingenuity as sales of its testing kits soared to unprecedented levels, propelling the stock to new heights and garnering widespread acclaim.

Steering Through Market Volatility

While the fervor of that period has subsided, Abbott Labs finds itself grounded once more, navigating the ebbs and flows of the market with poise and determination. Despite a decline in revenue due to a decrease in COVID tests sold, the company still managed to rake in over $1.5 billion globally, with total revenue reaching $40.1 billion.

Stability in Diversity

Abbott’s diverse portfolio, comprising diagnostic products, nutritional items, pharmaceuticals, and medical devices, serves as a bulwark against market uncertainties, ensuring a stable foundation for growth and innovation. The stock has yielded remarkable returns since its IPO in 1978, with a dividend that boasts an annual yield of 2%.

A Stalwart in Dividends

With a dividend growth rate of nearly 10% over the past decade and a distinguished record of increasing dividends for 52 consecutive years, Abbott Labs stands as a paragon of reliability in the realm of investments. Its commitment to shareholders is unwavering, earning it the prestigious title of Dividend King and solidifying its place in recession-resistant portfolios.

Conclusion

In a world rife with uncertainties, Abbott Labs stands tall as a beacon of stability and growth in the healthcare sector. Its ability to endure and thrive in tumultuous times is a testament to its unwavering dedication to innovation, excellence, and shareholder value. As the company charts its course towards a future filled with promise and potential, investors can rest assured that Abbott Labs remains a steadfast ally in their quest for sustainable returns.

Author: Rich Duprey | Published date: [Insert Date]

Disclaimer: The opinions expressed in this article belong to the author and do not reflect those of the publication.


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