2 Recession-Resistant Dividend Stocks to Buy and Hold
You don't need to predict a recession to prepare your portfolio. These two stocks can help.
Overview
Over the past few weeks, oil prices have decreased as geopolitical tensions in the Middle East have eased. While that's great news, this is still an evolving situation, and we can't say for sure that we are out of the woods. It is still possible that the economy will enter a recession relatively soon, and if it does, it may drag down broader equities along with it. Investors can prepare for this by buying shares in companies that perform relatively well even during economic downturns. Let's consider two stocks that fit the bill: CVS Health (NYSE: CVS) and Gilead Sciences (NASDAQ: GILD). Read on to find out why these two healthcare leaders are great picks to prepare a well-diversified portfolio for a recession.
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Although it is best known as a pharmacy chain operator, CVS Health has a diversified healthcare business that spans primary care and health insurance, and it is also a leading pharmacy benefits manager. The company's operations are fairly defensive and can perform relatively well even during recessions. Take CVS' insurance business. Health insurers tend to experience steady demand even as the economy weakens, since patients continue to seek medical services regardless of economic conditions.
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Originally published at www.fool.com.