11 High-Yield Dividend Aristocrats Perfect For The Coming Recession

Posted On July 20, 2022 9:23 am
By: Dividend Sensei

Fears of a recession are mounting, with BAC and Deutsche Bank now forecasting a mild downturn in 2023. A recession could even begin by December 2022.

Even without a recession, Morgan Stanley is confident stocks have 10% lower to fall. If we get a mild recession, stocks could fall 25% more, and in a severe recession, 35%.

Fortunately, high-yield defensive dividend aristocrats like these 11 blue-chips are potentially wonderful low volatility options that can help weather the recession.

They yield a very safe 4.1%, are 20% historically undervalued, and analysts expect long-term returns of 11.0%, just as they’ve delivered over the last 26 years.

These defensive high-yield aristocrats fell just 31% in the Great Recession, 12% in the Pandemic, and are down 7% in 2022, 67% less than the S&P 500 and 60% less than a 60/40.

Combining them with 33% long US treasuries cuts the peak decline in severe bear markets in half, including just a 1.6% decline in 2008 and a 6% decline during the Pandemic.

Or, to put it another way, these 11 high-yield aristocrats could be just what you need to sleep well at night in the coming 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.