This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

How to Recession-Proof Your Portfolio With These 5 Dividend Aristocrats

NEW YORK (TheStreet) -- "Dividend aristocrats" have historically performed well during recessions. The Standard & Poor's Dividend Aristocrats index was down only 21.88% in 2008. For comparison, the S&P 500 index was down 37% in the same period.

The Dividend Aristocrat index is made up of stocks with 25 or more years of consecutive dividend increases. Stocks with a long history of dividend increases tend to have strong, stable cash flows and a history that shows they can weather economic downturns.

Courtesy of S&P 500 Dividend Aristrcrats Fact Sheet

Dividend Aristocrats with Smallest Losses in 2007 to 2009 Recession

Not all Dividend Aristocrats are created equally. Some handle recessions much better than others. The 10 Dividend Aristocrats from 2007 with the lowest maximum drawdown (biggest loss from highest price to lowest price) from the beginning of 2007 to 2009 are shown below. The maximum drawdown and returns for the SPDR S&P 500 ETF Trust (SPY)  are shown as well for comparison.

McDonald's (MCD - Get Report) had the lowest overall maximum drawdown, at -21.65%. McDonald's was also the only Dividend Aristocrat to post positive returns in 2007, 2008, and 2009. The company had the highest return on the top 10 in 2007 as well. The success of McDonald's in this exceptionally bearish market shows the company did not only survive during the last recession, it thrived.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BDX $150.12 0.00%
KMB $120.47 0.00%
MCD $114.40 0.00%
XOM $81.25 0.00%
WMT $60.24 0.00%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs