In this article, we will take a look at some of the best recession-proof dividend stocks.
Since 1950, the United States has gone through 10 official recessions. In seven of those instances, the Standard & Poor’s 500, a broad measure of the stock market, also declined, while three downturns did not see major drops. The last recession that did not coincide with a notable fall in the index was nearly 50 years ago, during the back-to-back recessions of 1980 and 1982.
For the seven recessions linked with market declines, the S&P 500 fell by an average of about 31%, with losses ranging from 18% to as much as 55%. The steepest drop came during the Great Recession, when the index plunged 55%. More recently, amid the surge in US inflation to 40-year highs, the S&P slipped around 25% between January and September 2022.
Recessions usually bring a slowdown in consumer spending. As demand weakens, businesses often cut prices— or at least hold off on raising them— in an effort to encourage customers to keep buying. For this, investors often rely on dividend stocks to maximize their returns, as these equities perform better during these periods.
For this, we will take a look at some of the best dividend stocks for a recession.
Source: unsplash
Our Methodology
For this article, we used Insider Monkey’s database of nearly 1,000 hedge funds as of Q2 2025 and identified dividend stocks from industries that are known to be recession-proof, such as healthcare, consumer staples, telecommunications, and utilities. From that list, we selected dividend stocks that have consistently increased their payouts for over 10 years. Finally, we shortlisted 10 best dividend stocks that had the highest number of hedge fund investors tracked by Insider Monkey as of Q2 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Enterprise Products Partners L.P. (NYSE:EPD)
Number of Hedge Fund Holders: 26
Enterprise Products Partners L.P. (NYSE:EPD) is a leading midstream energy company known for generating steady cash flow, even through difficult periods like the 2007–2009 financial crisis, the 2015–2017 oil price slump, and the COVID-19 downturn from 2020 to 2022.
Founded in 1968, Enterprise Products Partners L.P. (NYSE:EPD) has grown into one of the largest midstream operators in the US, with assets spanning nearly every major shale basin and extending across the Gulf Coast. The company has weathered past recessions without cutting its dividend and even managed to outperform during the 2008 crisis.
Its extensive network of pipelines, storage facilities, and infrastructure moves fossil fuels from the wellhead to the end user, earning fees along the supply chain at multiple stages. EPD is one of the best dividend stocks to invest in, as the company has raised its payouts for 27 consecutive years. It currently offers a quarterly dividend of $0.545 per share and has a dividend yield of 6.89%, as of September 26.
9. Genuine Parts Company (NYSE:GPC)
Number of Hedge Fund Holders: 38
Genuine Parts Company (NYSE:GPC) is a top supplier of automotive and industrial replacement parts and has shown remarkable resilience over its long history. It has grown sales in 91 of its 97 years and increased earnings in 79 of them. Strong and consistent demand for replacement parts has supported this performance, along with the company’s disciplined approach to acquisitions. The company targets deals that not only enhance sales and margins but also contribute to earnings per share within the first year.
Genuine Parts Company (NYSE:GPC) earns most of its revenue from its automotive segment, which sells products through a wide distribution network that includes thousands of NAPA and Alliance auto parts stores. The automotive aftermarket tends to remain strong even during tough economic periods, since consumers continue to repair and maintain older vehicles as they age and require service.
In addition, Genuine Parts Company (NYSE:GPC) is a solid dividend company. It maintains one of the longest dividend growth streaks in the market, spanning 69 years. The company currently offers a quarterly dividend of $1.03 per share and has a dividend yield of 2.99%, as of September 26.
