The stock market is on a tear right now. The Dow just hit a new all-time high, fueled by the Fed's decision to slash interest rates. But just below the surface, a storm is brewing…
Experts are warning about a potential “hard landing” for the economy. Inflation could come roaring back. And some investors are speculating that the market's euphoria is masking a brewing bubble.
You see, savvy investors know that it's not about making money in a bull market. It's about protecting your wealth when the bear market inevitably arrives.
So how do you navigate this uncertain market environment?
Today, we're revealing three rock-solid dividend stocks that can weather any economic storm. These are companies with powerful track records, solid fundamentals, and attractive dividends that can help you sleep well at night – no matter what happens in the market.
Wendy's (WEN): A Juicy Dividend and a Tasty Growth Story
Wendy's has been quietly killing it.
The fast-food chain is rapidly expanding its breakfast menu, snatching market share from McDonald's. Same-store sales are rising. And management is aggressively raising its dividend, giving income investors plenty to get excited about.
Our resident fast-food guru, Shah Gilani, is enthusiastic about Wendy's, picking it as his favorite recession play in a recent installment of his “Buy This, Not That” segment (which you can watch HERE).
“I like a stock that’s been a little beaten up,” he explained, highlighting the potential for an upside move to $21. And if Wendy's continues to execute, he sees $24 or even $25 within a year, which would add up to 40% gains.
In a turbulent market, that kind of upside is hard to pass up.
Of course, Wendy's isn't just a growth story. The stock also pays a juicy 5.64% dividend yield, making it a true double threat. However, Gilani does sound a note of caution about the company's payout ratio: “They’re paying out about 102% of the net income available to common shareholders.”
Still, Wendy's is worth a close look as a recession-proof play that can give your portfolio a taste of both growth and income.
Duke Energy (DUK): A Low-Volatility Utility Play for Any Market
When it comes to riding out a market storm, utility stocks are like a warm, cozy safe haven. These companies provide essential services – like electricity – meaning their revenue is consistent and dependable, even in a recession. And that makes their dividends incredibly reliable.
Duke Energy is one of my favorite utility companies. It's a well-managed company with a strong track record of operational excellence and a history of rewarding shareholders with consistent dividend growth.
Our resident market maven, Chris Johnson, sees Duke as a solid buy in today's uncertain market, writing: “The ‘lower volatility, maintain consistency' rule is the foundation for the money migration that we’ve seen over the last six months. Following that rule means that you must get away from the high-flying technology names and move into more ‘plain paper bag’ sectors… Utilities, Consumer Staples and Real Estate. That’s where the big money has been moving, and those are the three sectors that will serve as the “safe harbor” for the next recession driven market.”
Duke pays a 3.5% dividend yield. It's not the highest yield in the utility sector, but what makes this dividend so powerful is Duke's consistency. The company has been rewarding shareholders with rising dividends for decades.
So if you want a sleep-well-at-night dividend stock that can weather a market storm and provide a dependable stream of rising income, Duke Energy is hard to beat.
Blackstone Secured Lending Fund (BXSL): A Fat 10% Yield to Crush Inflation
Business development companies (BDCs) are like private equity firms on the public market. These companies lend money to private businesses, generating high yields for investors. They can be a bit risky, but for those willing to do their research, they can be an excellent source of market-beating income.
The Blackstone Secured Lending Fund, operated by the trillion-dollar asset manager Blackstone, doesn't mess around. This BDC boasts an impressive portfolio of high-yielding loans, and it's crushing inflation with a fat 10% dividend yield.
[As our dividend guru Marc Lichtenfeld recently wrote](https://wealthyretirement.com/safety-net/blackstone-secured-lending-fund-bxsl-a-rock-solid-10-percent-yielder/), this BDC has been growing its net investment income (“NII”) “by double digits for several years in a row,” adding, “Last year, the company paid shareholders $438 million in dividends while generating $654 million in NII for a payout ratio of 67%.”So while the market chases high-flying growth stocks with unsustainable valuations, you can sit back, relax, and watch your wealth grow with Blackstone's generous double-digit yield.
Beat the Market by Playing Defense
Stock market crashes are a part of life. You can't avoid them. But you can prepare for them.
By allocating a portion of your portfolio to these recession-proof dividend stocks, you'll not only beat the market by playing defense, but you'll also discover an incredible source of market-beating income that can help you achieve your financial goals even faster.
As always, remember that it pays to do your own research and seek the advice of a financial professional before making any investment decisions.
And be sure to check back tomorrow, as we'll be revealing two overlooked energy companies poised to hand investors triple-digit returns as AI goes nuclear!
