Recession-Proof Stock With 60+ Years Of Dividend Growth
It’s been a terrible two weeks for investors.
At one point, the S&P 500 was down over 20% from its highs, which is bear market territory.
Why the drop?
Trump’s tariff announcement sent shockwaves through the markets.
There are fears these tariffs will cause a recession in the United States.
Certainly not what Trump had in mind!
If a recession hits, we, as dividend investors, need to be prepared. While Dividend stocks are normally a safe haven in times of turmoil… that doesn’t mean we can’t take advantage of the fear to pick up some bargains.
One way to survive a recession is to purchase Consumer Staples stocks.
These are your grocery stores, food producers, household products, etc.
Essentially, products people need to survive.
Even in a recession, people still need to eat and keep themselves clean!
While Consumer Staples fell, they didn’t fall nearly as hard as the overall market.
Nobody likes losing a lot of money in the stock market!
Consumer Staples can help buffer the downward momentum.
And you know what? Most Consumer Staples stocks pay dividends!
Which brings us to Colgate-Palmolive (ticker: CL), a $70 billion household products company.
Colgate-Palmolive sells products ranging from toothpaste and personal care products, like deodorant and hand soap, to pet food and cleaning supplies.
I don’t care how bad the economy gets, I am still brushing my teeth and washing my hands!
Do you know what else is so great about Colgate-Palmolive?
They’ve been paying dividends every year since 1895.
That includes the Great Depression, two World Wars, and the Great Recession!
Not only that, Colgate-Palmolive has increased those dividend payments every year for over 60 years!
And Colgate-Palmolive just increased their dividend to $0.52 per share!
Its next payment is right around the corner.
If you buy Colgate-Palmolive by April 16th, you’ll collect their next payment.
How much is Colgate-Palmolive growing their dividend?
The chart only goes back to 1990 (yes, 35 years), but you can see the consistent growth.
The April payment is 4% higher than their last payment.
It’s not a huge increase, but it will outpace inflation.
The main downside to Colgate-Palmolive is its low dividend yield of only 2.3%.
Other companies will have higher dividend growth and/or higher dividend yields.
But none of them have been paying dividends for 130 years!
Are you worried about Trump’s tariffs causing a recession? If so, doesn’t a company like Colgate-Palmolive sound like a safe dividend stock?
Let me know what you think!
Michael Jennings, Editor
This post originally appeared at Dividend Stocks Research.
Category: Dividend Stocks
