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You’ll Never Guess Which Dividend ETF Usually Grows The Best In Recessions

You’ll Never Guess Which Dividend ETF Usually Grows The Best In Recessions

Posted On July 6, 2022 9:16 am
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Recession fears are rising and some of the world’s best economists now expect a mild recession in 2023.

Defensive blue-chips such as consumer staples, healthcare, and utilities are time-tested ways to minimize sales, earnings, cash flow, and dividend declines in economic downturns.

But there is one dividend ETF that holds the record of the best fundamental growth in the two worst economic catastrophes in 75 years.

This is one of my favorite dividend growth ETF. It saw its earnings grow 16% in the Great Recession and 10% in the Pandemic, and its dividends grew similar amounts.

In fact, in all three recession years, in the two worst economic downturns in 75 years, this ETFs sales, earnings, cash flow and dividends all rose.

It does represent some of the world’s best fast-growing, wide-moat blue-chips. In fact, analysts expect it to deliver 13.7% long-term returns in the future, which is almost identical to its historical returns since 1999.

And its 17% long-term dividend growth rate is 2X that of the S&P and far better than any other dividend ETF I’ve seen, making it a potentially great fundamentally defensive dividend growth option for this, or any future recession.

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About author

Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.

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