5 Safe Stocks to Buy During Recessions

In this article, we discuss 5 safe stocks to buy during recessions. If you want to read our detailed analysis of the current economic situation, go directly to the 10 Safe Stocks to Buy During Recessions.

5. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 60

Walmart Inc. (NYSE:WMT) is a Bentonville, Arkansas-based operator of discount department stores, hypermarkets, and grocery stores. The company operates on the motto “Everyday Low Prices.”

Walmart Inc. (NYSE:WMT) is a member of the prestigious Dividend Aristocrat list as the company has been increasing its dividends for the past 49 years, and next year will become a ‘Dividend King.’ During the 2008 recession, the share price of Walmart Inc. (NYSE:WMT) increased by 20% and was the sixth-best performer in the S&P 500 Index for that year.

On May 24, Walmart Inc. (NYSE:WMT) revealed that it would be expanding its drone delivery to six states across the United States. The company’s SVP of innovation and automation shared that the company aims to extend the DroneUp delivery system to 34 sites by the end of 2022. This would allow Walmart Inc. (NYSE:WMT) to deliver over 1 million parcels annually by drone.

Investing in Walmart Inc. (NYSE:WMT) has also become attractive due to the inflationary pressures weighing upon the economy. The price hikes are forcing consumers to switch to more economical solutions for their everyday requirements. Thus, big-box retailers like Walmart Inc. (NYSE:WMT) are likely to do well in recessions.