10 Best Recession Stocks Of June 2024 (2024)

Monster Beverage makes energy drinks, which are widely consumed. MNST’s share price has steadily trended upward over the past two decades.

Company earnings per share, or EPS, have increased an average of 11.2% annually over the past five years. Analysts predict slightly higher yearly EPS growth over the next five years.

While the stock is up more than 350% since 2014, the largest price decline in the last decade is 30.4%. That may seem like a lot, but it represents much lower volatility than the majority of stocks. Even the SPDR S&P 500 ETF (SPY) saw a larger decline of 34% during that period.

MNST doesn’t pay a dividend, but it has been buying back shares with a current buyback yield of 1.21%. Buybacks can help bolster shareholder value over time because profits are split between fewer shares outstanding and therefore shareholders.

Morningstar gives MNST an “A” financial health grade. Over the last decade, MNST’s average annual return is 16%.

Costco provides a membership-based retail shopping experience via its online store and warehouses.

Company earnings per share have increased an average of 14.6% annually over the past five years. Analysts predict 9.9% yearly EPS growth over the next five years. Steadily rising earnings are a key factor in lifting the stock price over time.

Morningstar gives the company a financial health grade of “A.” It was the best-performing stock on our list over the last decade, with an average annual return of 24.5%.

Costco stock has a dividend yield of 0.6%. The company has increased its dividend by an average of 12.6% annually over the past 10 years. It has also been buying back shares, with a buyback yield of 0.2%.

Church & Dwight is the parent company for many household and personal care brands, including Arm & Hammer, Trojan and Oxi Clean.

EPS has increased an average of 6.2% per year over the past five years. Analysts predict that will increase to 9.3% average annual EPS growth over the next five years.

It has an “A” financial health rating from Morningstar and pays a dividend of 1.1%. The dividend amount has increased an average of 6.2% per year over the last decade.

The average annual stock return over the past decade is 13.6%.

Becton, Dickinson and Company is a manufacturer and distributor of a wide array of medical and surgical products, such as syringes, needles and catheters.

The company’s EPS has risen an annual average of roughly 6.1% over the past five years. Analysts expect 8.6% average annual earnings growth over the next five years.

Morningstar gives the company an “A” financial health rating. BDX has also been buying back some shares, generating a 0.7% buyback yield

Becton offers a decent dividend yield. The company has been growing the dividend payout by an average of 5.7% a year over the past 10 years. In fact, the company has been raising its dividend payout for more than 25 years, making it a member of the Dividend Aristocrats. Its 10-year average annual return is 8.9%.

Procter & Gamble makes a wide array of grooming and household products under brands such as Head & Shoulders, Crest, Pampers and Bounty.

The stock is the most stable on our list, with the smallest drawdown of 25.5% in the past decade. It has an “A” financial health rating from Morningstar and a 2.4% dividend yield. The company increased the dividend amount by an average of 4.6% per year over the past decade. PG also buys back shares, with a buyback yield of 0.9%

EPS has increased an average of 7.8% per year over the past five years. Analysts expect similar EPS growth going forward. The average annual return over the past decade is 10.8%.

CMS Energy is a utility company that provides electricity and natural gas to consumers in Michigan.

The company is an all-around solid performer, with annual earnings growth of 8.2% over the past five years and 7.6% annual growth expected over the next five years.

CMS’s largest price decline over the last decade was 30%, and the company has an average annual return of 10.7% per year over that period. Good returns for lower drawdowns are the hallmark of a good recession stock.

CMS pays one of the higher dividend yields on this list. The dividend payout has grown at an average annual rate of about 6.7% over the past five years. It has a “B” financial health rating—which indicates a high-quality company—from Morningstar.

Atmos distributes natural gas to approximately three million customers in eight states.

The company has increased earnings per share by an average of 9.7% per year over the past five years. Morningstar gives it an “A” financial health rating.

The dividend yield is 2.8% and the dividend amount has increased an average of 8.1% per year over the past decade. ATO has performed well, with an average annual return of 11.3% per year over the past decade.

Mondelez owns a diverse assortment of snack and consumables brands, including Cadbury, Clif bars, Chips Ahoy!, Halls and Oreo.

The company has steady earnings growth, averaging 7.3% per year over the last five years. Analysts forecast about the same growth going forward.

Mondelez has a 2.5% dividend yield. The company has increased its dividend by an average of 11.7% per year over the past decade. MDLZ also buys back shares, with a buyback yield of 1.9%.

Morningstar gives it an “A” financial health rating. The stock has an average annual return of 8.2% over the past 10 years.

WEC Energy provides electricity and natural gas to 4.7 million customers in Minnesota, Michigan, Illinois and Wisconsin.

WEC has the highest dividend yield on our list at 4.2%, and it has increased its dividend by an average of 7.9% per year over the past decade. EPS has increased an average of 5.9% per year over the past five years. Analysts expect EPS to rise by an annual average of 7.2% over the next five years.

Morningstar gives the company a “B” financial health rating. The average annual return of the stock over the last decade is 9.3%.

American Electric Power Company provides electricity to 5.6 million customers in 11 states.

The company’s EPS increased an average of 5.3% per year over the past five years. Analysts expect higher growth in the future.

It has the second-highest dividend on our list at 4%, and the dividend has increased an average of 5.8% per year over the past decade.

AEP has a “B” financial health grade from Morningstar and has produced an average annual return of 9% over the past 10 years.