Concerned About a Recession? Here Are 2 of the Best Dividend Stocks to Buy
There's a lot of uncertainty as we enter 2023. Many investors believe higher interest rates to combat inflation will cause a significant economic slowdown in the new year. Recessions tend to cause economically sensitive companies to report much lower earnings, often forcing them to slash cash outflows, including dividend payments.
But some companies are in a better position to weather an economic storm than others because their businesses generate much less-volatile earnings and free cash flow (FCF). So their dividends should withstand a recession.
Two companies with some of the lowest earnings volatility in the S&P 500 are Valero Energy (NYSE: VLO) and Realty Income (NYSE: O). That makes them among the best dividend stocks to buy for those worried about a recession in the upcoming year.
Source Fool.com
