2 Recession-Resistant Dividend Stocks to Buy Now

It’s always hard to predict whether a recession is coming. Even in the current environment marked by serious geopolitical tensions and lingering tariff-related volatility, some experts believe we will go through 2026 without experiencing a full-blown recession. However, it’s also always a good idea for individual investors to hold shares of companies that can perform relatively well during economic downturns, even if there isn’t one on the horizon. Let’s consider two corporations that have what it takes to overcome recessions: CVS Health (NYSE: CVS) and Gilead Sciences (NASDAQ: GILD).

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CVS Health is a leading pharmacy chain with over 9,000 locations across the U.S. Beyond the number of stores it owns, CVS has been around a while and has built relationships with communities. Some people have been getting prescription medicines from the company for years. CVS Health’s business might be affected in the case of a recession. The company isn’t just a pharmacy; it is also a bit of a convenience store. However, its diversified healthcare business, spanning pharmacy services, primary care, and health insurance, should navigate challenging economic times better than most, allowing it to maintain decent earnings.

CVS Health has encountered some headwinds in recent years. The company was unable to contain costs within its Medicare Advantage (MA) business, for instance. But the healthcare leader rebounded last year and is still making changes that should help improve its margins and overall financial results. That includes CVS Health’s decision to scale back its MA business to focus on profitable growth. Lastly, the stock offers an attractive yield of 3.4% — compared to the S&P 500‘s 1.2% — and it has increased its dividend by 56.5% over the past decade. CVS Health is a solid recession-resistant stock to add to your portfolio.

Gilead Sciences is a leading biotech with a deep product portfolio. The company is particularly known for its work in the HIV market. Gilead Sciences boasts some of the leading HIV medicines, including Biktarvy, as well as Descovy for PrEP. It has also made a push in oncology in recent years, while its Veklury was the first medicine for COVID-19 to be approved in the U.S.

Gilead Sciences’ products, particularly its key HIV franchise, are the sort patients will fight tooth and nail to keep accessing, even during a recession. That’s why the company’s business should perform reasonably well even in an economic downturn. And although sales growth hasn’t been strong of late — partly due to Veklury’s fluctuating and sometimes disappointing revenue — Gilead Sciences has a deep pipeline, especially in oncology, that should allow it to launch brand-new products and boost its sales.

Lastly, there is Gilead Sciences’ strong dividend program. The company’s forward yield tops 2.3%, while it has increased its payouts by 90.7% over the past decade. Gilead Sciences can help anchor a well-diversified portfolio when the going gets rough.

Before you buy stock in CVS Health, consider this:

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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Gilead Sciences. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy.

2 Recession-Resistant Dividend Stocks to Buy Now was originally published by The Motley Fool

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