2 Recession-Proof Dividend Stocks to Buy and Hold

Fears of a looming recession seem to be rising, partly fueled by President Donald Trump's macroeconomic policies. While it's impossible to predict whether an economic downturn is indeed coming, it's not a bad idea for investors to purchase shares of companies that are likely to perform relatively well in case it does happen.

Companies that have been paying -- and raising -- their dividends for a long time can be particularly good targets in these cases since any corporation capable of sustaining a dividend through good and bad times is likely to have strong fundamentals. (NYSE: MDT) and Johnson Johnson (NYSE: JNJ) are excellent examples along those lines. Here's what investors need to know.

During a recession, economic activity declines, the unemployment rate increases, and with people having less money to spend, consumer demand for various products and services decreases. However, some sectors experience recessions differently than others. Defensive ones, like healthcare, tend to perform better than most, since many medical products and services are a matter of life or death. So, these tend to be the last ones consumers want to skimp on during downturns. Medtronic and Johnson Johnson provide some of these products and services.

Continue reading

Source Fool.com