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wallstreet-bet.net – 3 Top Dividend Stocks to Buy During Recession for Passive Invome –

Stocks struggle in 2022. High inflation and faltering economic growth have investors worried. Technology and high-growth firms aren’t producing the same returns as before. Long-term research shows that stocks outperform most other major asset types.

Even during a rough patch, investors shouldn’t sell. Owning dividend-paying equities might help investors stay the course amid market declines.

These dividend stocks reward investors who hold through volatile times. Recession-proof dividend stocks.

Shell Group plc (SHEL)

As a result of the increase in the cost of energy, Shell has become a veritable cash flow generator. The profit that the corporation made during the second quarter skyrocketed to $11.5 billion, which is a significant increase from the 5.5 billion dollars that it made during the second quarter of 2021.

The amount of free cash flow generated by the corporation was over $13.7 billion, which is about double the amount reported during the second quarter of 2021. During the quarter, Shell returned $7.4 billion to shareholders in the form of dividends and buybacks of existing shares of the company’s stock.

Shell’s total market capitalization is under $200 billion at the moment, despite the fact that the company is on track to generate approximately $50 billion in annualized free cash flow, and despite the fact that its shares sell at an estimated 5.3 times forward profits.

In addition to the significant stock buybacks, holders of SHEL stock are also receiving a dividend yield of 3.6%.

wallstreet-bet.net – 3 Top Dividend Stocks to Buy During Recession for Passive Invome –

Unilever PLC (UL)

Unilever, a corporation that specializes in packaged foods and consumer goods, is currently in an intriguing situation. Because of shifts in consumer preferences over the past few years, the company has had a difficult time achieving considerable growth in its revenue.

However, due to the inflationary atmosphere that exists now, things are different now. The most recent quarter for Unilever experienced a revenue increase of about 9%, which is a significant improvement from the company’s historical record. Best dividend stock through recession.

3 Top Dividend Stocks to Buy During Recession for Passive Income

Price increases were the only factor at play here because there was no growth in overall sales volume. At the moment, Unilever is experiencing a decrease in its profit margins due to the fact that the rate of inflation in its costs is greater than 9%.

However, over time, inflation should become more manageable, and Unilever should reap the benefits of price increases it has already implemented throughout the supply chain.

Unilever is headquartered in Europe, and as a result, its shares are currently trading at a discount. This discount is in part caused by the recent drop in the value of European currencies in contrast to the dollar. American investors also stand to benefit from this situation. At the moment, the yield on the shares is 4.1%.

wallstreet-bet.net – 3 Top Dividend Stocks to Buy During Recession for Passive Invome –

The Southern Company (SO)

The Southern Company is undergoing significant change as a power utility. In the past, Southern generated the vast majority of its electricity from coal; however, in recent years, the company has shifted its focus to natural gas, nuclear power, and alternative energy sources.

In the case of some of these new generation facilities, like the nuclear power plants that Southern operates, there have been huge cost overruns. Recent months have been difficult for the solar sector on multiple fronts, including supply bottlenecks and concerns around cost.

On the other hand, the enactment of the Inflation Reduction Act, which incorporates large incentives for renewables, ought to provide Southern with a sizeable head start on this front.

In a broader sense, Southern does business in a number of markets that have robust populations and regulators who have a perspective that is typically positive for the utility industry. The shares of Southern Company were recently upgraded by UBS as a result of good regulatory action on the company’s Vogtle Unit 3 nuclear power plant. The dividend yield on the stock is currently 3.5%.

3 Top Dividend Stocks to Buy During Recession for Passive Income

This article reflects only the personal opinion of the wallstreet-bets.net writers. This is not a recommendation. If you liked the article please donate as much as you feel is appropiate. Thank you!

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