Recession-Proof Dividend Stocks: 3 Low-Beta Picks for Turbulent Times

The world is experiencing a wide range of macro worries right now. This includes the ongoing war in Ukraine and the potential for a global economic slowdown due to the trade war. 

As a result, there is an increased likelihood of a recession down the road. There are already multiple signs that the economy is slowing down.

Investors who want to prepare their portfolios for a recession might want to look for dividend stocks with low-beta stocks that have proven resilient versus past economic downturns. 

Some business models are less cyclical than others, and earnings and dividends are better protected when one invests in these recession-proof stocks.

These three dividend stocks have low betas well below 1.0, meaning they are likely to decline less than the broader market in the event of a recession. They also have dividend yields above 2%, which will act as a buffer against falling stock prices.

3 Low-Beta Stocks

1: Procter & Gamble (PG)

Procter & Gamble is a consumer products giant that sells its products in over 180 countries. Notable brands include Pampers, Luvs, Tide, Gain, Bounty, Charmin, Puffs, Gillette, Head & Shoulders, Old Spice, Dawn, Febreze, Swiffer, Crest, Oral-B, Scope, Olay and many more. The company generated $84 billion in sales in fiscal 2024. Procter & Gamble is first on our list of low beta dividend stocks.

Procter & Gamble has paid a dividend for 134 years and has grown its dividend for 68 consecutive years – one of the longest active streaks of any company. 

On April 9th, 2024, Procter & Gamble raised its dividend by 7.0%, from $0.9407 per quarter to $1.0065. 

In late January, Procter & Gamble reported (1/22/25) financial results for the second quarter of fiscal 2025 (its fiscal year ends June 30th). Its sales and its organic sales grew 2% and 3%, respectively, over last year’s quarter, primarily thanks to 2% volume growth. 

Core earnings-per-share grew 2%, from $1.84 to $1.88, beating the analysts’ consensus by $0.02. The firm’s sales amid sustained price hikes are a testament to the strength of Procter & Gamble’s brands.

Procter & Gamble has grown its earnings-per-share by 5.6% per year on average over the last decade. Sales have grown 2% annually on average over this period, and the net profit margin has increased. 

The company has been going through a major transformation in recent years. It has sold a significant number of low-margin, low-growth brands and has reduced its brand count from ~170 to 65. This transformation has weighed on the top line, but it should allow Procter & Gamble to focus on its strongest, most profitable brands moving forward. 

Procter & Gamble has significant competitive advantages thanks to its strong brands. The company has several category-leading brands, including Crest, Tide, Gillette, Bounty, Febreze, Old Spice, Pampers, and many more. These brands provide Procter & Gamble with pricing power and consistent profits, in good times or bad, making it an ideal low beta stock.

PG stock currently yields 2.4%.

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2: Campbell Soup (CPB)

Campbell Soup Company is a multinational food company headquartered in Camden, N.J. The company manufactures and markets branded convenience food products, such as soups, simple meals, beverages, snacks, and packaged fresh foods. The company’s portfolio focuses on two specific businesses: Campbell Snacks and Campbell Meals and Beverages. Campbell generated annual sales of $9.6 billion in fiscal 2024. It is number two on our list of low beta stocks.

Campbell Soup reported second quarter FY 2025 results on March 5th, 2025. Net sales for the quarter improved by 9% year-over-year to $2.7 billion. This increase was mostly a result of the acquisition of Sovos Brands. Adjusted EPS was 8% lower year-over-year at $0.74 for the quarter, which beat expectations by two cents. 

Future earnings growth will be driven primarily by acquisitions. For example, on March 12, 2024, Campbell closed its acquisition of Sovos Brands (SOVO) for $23 per share in cash, representing a total enterprise value of $2.7 billion, and was funded by issuing new debt. 

Sovos is a leader in high-growth premium Italian sauces, and owns the market-leading Rao’s brand. Campbell had the goal of building a $1 billion sauce business, and it achieved that through this acquisition. Sovos was added to Campbell’s Meals & Beverages division.

Share buybacks will also aid EPS growth. The company repurchased $56 million worth of shares in H1. There remains $301 million remaining under the current $500 million share repurchase program, which is in addition to the existing $205 million remaining on its anti-dilutive share repurchase program.

CPB stock currently yields 4%.

3: Verizon Communications (VZ)

Verizon Communications is one of the largest wireless carriers in the country. Wireless contributes three-quarters of all revenues, and broadband and cable services account for about a quarter of sales. The company’s network covers ~300 million people and 98% of the U.S. Verizon is yet another low beta stock.

 On September 14, 2024, Verizon announced that it was increasing its quarterly dividend by 1.9% to $0.6775 for the November 1st, 2024 payment, extending the company’s dividend growth streak to 20 consecutive years, making it a Dividend Contender.

On January 24th, 2025, Verizon announced fourth quarter and full-year results for the period ending December 31st, 2024. For the quarter, revenue grew 1.7% to $35.7 billion, which beat estimates by $360 million. Adjusted earnings-per-share of $1.10 compared favorably to $1.08 in the prior year and was in line with expectations. 

For the year, revenue grew 0.6% to $134.8 billion, while adjusted earnings-per-share was $4.59 compared to $4.71 in 2023. For the quarter, Verizon had postpaid phone net additions of 568K, which was better than the 449K net additions the company had in the same period last year. Retail postpaid net additions totaled 426K. 

Wireless retail postpaid phone churn rate remains low at 0.89%. Wireless revenue grew 3.1% to $20.0 billion, while the Consumer segment increased 2.2% to $27.6 billion. Broadband totaled 408K net new customers during the period, the 10th consecutive quarter of at least 375K net adds.

Verizon has seen its earnings-per-share grow at a rate of 1.6% per year for the past 10 years. We have reaffirmed our forward growth rate of 2.5%.

Steady growth should continue to allow Verizon to raise its dividend each year. Verizon’s key competitive advantage is that it is often considered the best wireless carrier in the U.S. This is evidenced by its wireless net additions and very low churn rate. 

This reliable service allows Verizon to maintain its customer base and allows the company to move customers to higher-priced plans. Verizon’s 5G service coverage area gives it an advantage over other carriers. Another advantage for Verizon is the stock’s ability to withstand a downturn in the market.

VZ stock currently yields 6.3%.

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Disclosure: No positions in any stocks mentioned.

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