The 12 Safest Dividend Aristocrats To Buy During This Recession

Mar. 23, 2020 10:43 AM ETADP, APD, CAT, CL, GD, ITW, JNJ, KMB, MDT, PEP, RHHBY, SYK245 Comments


  • My goal is to always provide you with the best evidence based long-term strategies for achieving their your financial goals. The latest economic news surrounding the COVID-19 pandemic is grim.
  • The global recession we're facing will be severe, and we don't know how long it will last. Government stimulus efforts, rapidly approaching wartime proportions, are designed to minimize the damage.
  • At times like these, it's more important than ever to trust your savings to a well diversified and properly risk-managed portfolio.
  • GD, CAT, MDT, ADP, PEP, SYK, CL, KMB, JNJ, ITW, APD, and RHHBY are the safest and highest quality dividend aristocrats & champions to ride out this recession.
  • Combined with the right allocation of cash & bonds, you can sleep well at night no matter how bad the economic news gets in the coming weeks and months.
  • Looking for a helping hand in the market? Members of The Dividend Kings get exclusive ideas and guidance to navigate any climate. Get started today »

(Source: Imgflip)

This Looks Like It Will Be A Historic Recession...

Economists and analysts are updating their economic forecasts with the first hard data from the effects of the global fight against the coronavirus.

To say that the numbers are grim would be an understatement.

UBS estimates a 10% decline in Q2 US GDP.

Bank of America estimates a 12% Q2 contraction, worse than the 1958 single-quarter record of -10%.

Deutsche Bank exected -12.9% GDP growth in Q2 and -10% growth for the entire world.

JPMorgan expects -14% GDP growth and unemployment to rise to 6.3% by mid-year and falling to 5.3% by the end of the year, due to the pandemic passing and unprecedented fiscal and monetary stimulus.

Perhaps most frightening of all is Goldman Sach's revised economic forecast, which estimates -24% GDP growth. That's similar to Moody's estimate of about -21%, should the current status quo continue for a full quarter.

Goldman's forecast, which is the most severe thus far released, estimates it will take several years for the economy to recover.

The firm expects that after April that drag on the economy will gradually fade by about 10% per month... The firm expects the unemployment rate to increase to 9% from 3.5% over the next couple of quarters." - Business Insider

But as grim as these forecasts are, there are reasons for long-term optimism.

Look at how China, the first nation to lock down in order to stop this virus, is expected to recover rapidly. After a 26% GDP slam in Q1, Deutsche Bank's economists expect a 34% GDP surge in Q2.

Still, while a recession is inevitable and will be painful, the US economy should be able to rebound in the second half of 2020, according to the note. UBS said it thinks the social

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This article was written by

Dividend Sensei profile picture
Maximize your income with the world’s highest-quality dividend investments

Adam Galas is a co-founder of Wide Moat Research ("WMR"), a subscription-based publisher of financial information, serving over 5,000 investors around the world. WMR has a team of experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs, and traditional C-Corps.

The WMR brands include: (1) The Intelligent REIT Investor (newsletter), (2) The Intelligent Dividend Investor (newsletter), (3) iREIT on Alpha (Seeking Alpha), and (4) The Dividend Kings (Seeking Alpha).

I'm a proud Army veteran and have seven years of experience as an analyst/investment writer for Dividend Kings, iREIT, The Intelligent Dividend Investor, The Motley Fool, Simply Safe Dividends, Seeking Alpha, and the Adam Mesh Trading Group. I'm proud to be one of the founders of The Dividend Kings, joining forces with Brad Thomas, Chuck Carnevale, and other leading income writers to offer the best premium service on Seeking Alpha's Market Place.

My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives.

With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and safe and dependable income streams in all economic and market conditions.

Disclosure: I am/we are long GD, CAT, ITW, JNJ. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Dividend Kings owns GD, CAT, ITW, JNJ, and CL in our portfolios.

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