In today's uncertain economic climate, investors are seeking certainty in their portfolios. While all value stocks offer some level of stability, certain companies stand out as being more recession-proof. One effective strategy is to focus on companies that have recently increased their dividend payouts. This demonstrates their confidence in the midst of a cash-strapped environment.
For an even more secure investment, consider investing in "dividend aristocrats." These are companies that have consistently raised their dividends for an impressive 25 consecutive years. By sticking with these dependable companies, you can increase the chances of achieving long-term financial success.
Despite the economy and market demonstrating resilience this year, there is still a sense of apprehension on Wall Street. Many fear that a looming danger could impact our financial landscape. With interest rates expected to remain high for an extended period, growth-oriented stocks may face pressure, making value-oriented names more appealing.
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The Reliable Performance of Dividend Aristocrats
Company Dividend and Buyback Yields
On average, the companies in question boast a dividend yield of 2% and a buyback yield over the last 12 months of 5%. When combined, historical data suggests a total yield of 7%.
This enticing figure provides ample reason for investors to be excited.