Buying These 2 Stocks Is a Good Way to Hedge Against a Market Crash
Johnson & Johnson (NYSE: JNJ) and Dollar General (NYSE: DG) are traditionally strong, defensive stocks. That is, they do well in times of economic stress because they are in essential industries: healthcare in Johnson & Johnson's case, and consumer staples in Dollar General's.
Both companies deliver stable earnings, low volatility, and -- last but certainly not least -- dependable dividends. Let's dive into each one.
Johnson & Johnson stock traditionally has done well during downturns compared to the rest of the market. The company, thanks partly to its huge size (more than 44,000 employees and a market capitalization of $413 billion), has diverse revenue streams and sells a variety of healthcare products, including medical equipment and pharmaceuticals. These products are generally recession-proof because healthcare providers and patients need them, regardless of how the economy is doing.
Source Fool.com
