5 Best Recession Dividend Stocks To Buy

In this article, we discuss 5 best recession dividend stocks to buy. If you want to read our detailed analysis of dividend stocks and their past performance during recessionary periods, go directly to read 11 Best Recession Dividend Stocks To Buy. 

5. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 64

PepsiCo, Inc. (NASDAQ:PEP) is a New York-based multinational food and beverage company that specializes in the marketing, manufacturing, and distribution of its products. On April 30, the company declared a 7% hike in its quarterly dividend to $1.355 per share. This was the company’s 52nd consecutive year of dividend growth, which makes PEP one of the best dividend stocks on our list. Moreover, the company has never missed a quarterly dividend since 1965. As of May 6, the stock has a dividend yield of 3.08%.

As of the end of December 2023, 64 hedge funds tracked by Insider Monkey held stakes in PepsiCo, Inc. (NASDAQ:PEP), compared with 65 in the previous quarter. These stakes have a total value of over $4.55 billion. With over 6.6 million shares, Fundsmith LLP was the company’s leading stakeholder in Q4.

4. Lowe’s Companies, Inc. (NYSE:LOW)

Number of Hedge Fund Holders: 68

Lowe’s Companies, Inc. (NYSE:LOW) is an American retail company, headquartered in North Carolina. The company operates a chain of retail stores across the country. On March 22, the company announced a quarterly dividend of $1.10 per share, which was in line with its previous dividend. It is a Dividend King with 59 consecutive years of dividend growth. In the fourth quarter of 2023, the company paid approximately $633 million to shareholders through dividends, which makes LOW one of the best dividend stocks on our list. The stock has a dividend yield of 1.90%, as recorded on May 6.

The number of hedge funds tracked by Insider Monkey owning stakes in Lowe’s Companies, Inc. (NYSE:LOW) jumped to 68 in Q4 2023, from 63 in the previous quarter. The consolidated value of these stakes is more than $3.7 billion.

3. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 71

The Procter & Gamble Company (NYSE:PG) is next on our list of the best dividend stocks to buy for a recession. The Ohio-based consumer goods manufacturing company offers a quarterly dividend of $1.0065 per share for a dividend yield of 2.45%, as of May 6. In April this year, the company achieved its 68th consecutive annual dividend growth.

As per Insider Monkey’s database of Q4 2023, 71 hedge funds held stakes in The Procter & Gamble Company (NYSE:PG), compared with 75 in the previous quarter. These stakes are worth nearly $6 billion in total. Among these hedge funds, Fisher Asset Management was the company’s leading stakeholder in Q4.

2. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 85

Exxon Mobil Corporation (NYSE:XOM) is an American energy industry company. Its quarterly dividend currently comes in at $0.95 per share for an impressive dividend yield of 3.28%, as of May 6. XOM is one of the best dividend stocks on our list as the company maintains a 41-year streak of consistent dividend growth.

Of the 933 hedge funds tracked by Insider Monkey at the end of Q4 2023, 85 funds held stakes in Exxon Mobil Corporation (NYSE:XOM), jumping from 79 in the previous quarter. These stakes are collectively valued at over $4.47 billion.

1. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 98

Merck & Co., Inc. (NYSE:MRK) tops our list of the best dividend stocks to consider for a recession. The company has raised its dividends for each of the past 13 years and it currently offers a quarterly dividend of $0.77 per share. As of May 6, the stock supports a dividend yield of 2.42%.

At the end of Q4 2023, 98 hedge funds, growing significantly from 85 in the previous quarter, held stakes in Merck & Co., Inc. (NYSE:MRK), as per Insider Monkey’s database. These stakes are worth over $7.1 billion in total. Ken Fisher, Ken Griffin, and Israel Englander are some of the most prominent stakeholders of the company in Q4.

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