5 Recession-Proof Dividend Stocks to Buy

4. Williams-Sonoma, Inc. (NYSE:WSM)

Dividend Yield as of May 23: 2.88%
Number of Hedge Fund Holders: 40

Williams-Sonoma, Inc. (NYSE:WSM) is a California-based consumer retail company that specializes in kitchenware and home furnishing. The company pays a quarterly dividend of $0.78 per share, after a 10% increase in its annual dividend in March. It has been raising its dividends consecutively for 16 years, with a five-year dividend CAGR of 11.9%, coming through as one of the most reliable recession-proof dividend stocks. The stock’s dividend yield, as of May 23, stood at 2.88%.

In its fiscal Q1 2022 results, Williams-Sonoma, Inc. (NYSE:WSM) posted an EPS of $5.42, beating consensus by $0.60. The company’s revenue for the quarter presented a 9.2% year-over-year growth to $2.5 billion. Acknowledging the company’s strong quarterly results, in April, Barclays set a $186 price target on Williams-Sonoma, Inc. (NYSE:WSM), while keeping an Overweight rating on the shares.

As per Insider Monkey’s Q4 2021 database, 40 hedge funds held stakes in Williams-Sonoma, Inc. (NYSE:WSM), up from 31 in the previous quarter. These stakes hold a consolidated value of over $646.7 million.

Headwaters Capital mentioned Williams-Sonoma, Inc. (NYSE:WSM) in its Q1 2022 investor letter. Here is what the firm has to say:

“We recently established a new position in Williams-Sonoma, Inc. (NYSE:WSM) the owner of Williams Sonoma, Pottery Barn, West Elm, Rejuvenation and Mark & Graham stores. The company serves the high-end consumer with affordable-luxury home décor items. Sales are correlated with the strength of the housing market, and the stock is currently “on sale” because of fears that the rise in interest rates will kill U.S. housing. In Williams-Sonoma, we see a very strong company that has successfully adapted its business to selling items online, that occupies a unique place in the consumer mind (rivaled only by RH), is generating record returns on invested capital, trading at less than 10x free cash flow, and aggressively repurchasing shares. We can’t predict home sales over the next twelve months with any confidence, but we are convinced that Williams-Sonoma, Inc. (WSM) has a bright future.”