12 Recession-Proof Stocks For Dividends In Bear Markets & Beyond

Updated on December 1st, 2025 by Bob Ciura

We are highly focused on stocks with strong dividend growth prospects. To that end, we have identified several recession-proof stocks whose dividend prospects should remain solid, even if a bear market occurs.

Of course, there is no such thing as a totally recession-proof stock, as all types of securities are subject to some degree of market risk.

Nevertheless, some stocks may be less sensitive to harsh economic conditions. In turn, they may be less likely to experience as much of an impact in their financial performance during a recession.

Recession-poof stocks should enjoy better longevity qualities when it comes to their dividend payouts.

Some examples are found among the Dividend Aristocrats. The Dividend Aristocrats are a select group of 69 stocks in the S&P 500 Index, with 25+ consecutive years of dividend increases.

You can download an Excel spreadsheet of all 69 Dividend Aristocrats (with metrics that matter such as dividend yields and price-to-earnings ratios) by clicking the link below:

12 Recession-Proof Stocks For Dividends In Bear Markets & Beyond

Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.

In this article, we are examining 12 dividend stocks covered in our Sure Analysis Research Database, whose recession-proof characteristics should enable them to keep growing their dividends in a bear market and beyond.

To narrow down our entire coverage universe, all 12 stocks featured here have been assigned an ‘A’ rating in their Dividend Risk Score.

They also have at least 15 years of consecutive annual dividend increases, meaning they have already proven their ability to withstand recessions.

Lastly, they have dividend yields above 1%, making them more appealing for income investors.

The stocks are listed according to their 5-year expected total returns, from lowest to highest.

Recession-Proof Stock #12: Arthur J. Gallagher & Co. (AJG)

5-year Expected Annual Returns: 14.7%

A.J. Gallagher was founded in 1927 as a commercial insurance broker focused on risk management. Its focus has not changed much in the decades since, but the company has grown immensely and is now present in 33 countries, offering insurance and risk management programs.

The brokerage segment makes up more than 80% of total insurance revenue, while the risk management business is the balance. A.J. Gallagher’s strategy depends upon nearly constant acquisitions, producing scale. It generates over $14 billion in annual revenue.

Gallagher posted third quarter earnings on October 30th, 2025, and results were much weaker than expected on both the top and bottom lines. Adjusted earnings-per-share came to $2.32, which missed estimates by 22 cents. Revenue was up almost 20% year-over-year to $3.37 billion, but that also missed by $90 million.

Brokerage segment organic growth was 4.5% for the quarter, which missed the company’s own estimates by about $11 million. The Risk Management segment saw organic growth of 6.7%, which met expectations. Margins were better for this segment as well.

The company noted that despite the expectations being missed, out of the last 30 quarters it has delivered double-digit revenue growth 26 times. This quarter was the 19th consecutive quarter of double-digit revenue growth with its strategy of constant acquisitions and some organic growth.

Click here to download our most recent Sure Analysis report on AJG (preview of page 1 of 3 shown below):

Recession-Proof Stock #11: PepsiCo Inc. (PEP)

5-year Expected Annual Returns: 14.8%

PepsiCo is a global food and beverage company that generates $89 billion in annual sales. The company’s products include Pepsi, Mountain Dew, Frito-Lay chips, Gatorade, Tropicana orange juice and Quaker foods.

The company has more than 20 $1 billion brands in its portfolio. On February 4th, 2025, PepsiCo increased its annualized dividend by 5.0% to $5.69 starting with the payment that was made in June 2025, extending the company’s dividend growth streak to 53 consecutive years.

On October 9th, 2025, PepsiCo reported third quarter earnings results for the period ending September 30th, 2025. For the quarter, revenue grew 2.7% to $23.9 billion, which beat estimates by $90 million. Adjusted earnings-per-share of $2.29 compared unfavorably to $2.31 the prior year, but this was $0.03 better than expected.

Organic sales grew 1.3% for the third quarter. For the period, volumes for both beverages and foods were down 1%. PepsiCo Beverages North America’s organic revenue grew 2% for the period even as volume declined by 3%.

Revenue for PepsiCo Foods North America decreased 3%, largely due to divestitures. Food volume decreased 4%. The International Beverages segment fell 1%, primarily due to lower volume. Revenues in Europe/Middle East/Africa were up 5.5%. Food volume declined 1%, but this was offset by a 1.5% gain in beverages.

PepsiCo reaffirmed prior guidance for 2025, with the company still expecting organic sales in the low single-digit range.

Click here to download our most recent Sure Analysis report on PEP (preview of page 1 of 3 shown below):

Recession-Proof Stock #10: Automatic Data Processing (ADP)

5-year Expected Annual Returns: 15.0%

Automatic Data Processing is one of the largest business services outsourcing companies in the world. The company provides payroll services, human resources technology, and other business operations to more than 700,000 corporate customers.

ADP posted first quarter earnings on October 29th, 2025, and results were better than expected on both the top and bottom lines. Adjusted earnings-per-share came to $2.49, which was a nickel ahead of estimates.

Revenue was up 7.2% year-over-year to $5.18 billion, beating estimates by $50 million. Expenses were $3.98 billion, down from $4.03 billion in Q4, but higher from $3.70 billion a year earlier.

Adjusted EBIT margin was 25.5% of revenue, up from 23.7% in Q4 and flat to 25.5% a year ago. Employer Services revenue was $3.49 billion, up 7% year-over-year. Segment earnings were $1.23 billion, up 6%, while pretax margin was down from 35.7% of revenue to 35.2%.

PEO Services revenue was $1.69 billion, up 7% year-over-year, while segment earnings fell to $219 million. Pretax margin was 13% of revenue, off from 14.3% a year ago.

The company raised its dividend to $1.70 per share quarterly, which was up 10.4% from the prior payout. That’s the 51st consecutive year of dividend increase.

Click here to download our most recent Sure Analysis report on ADP (preview of page 1 of 3 shown below):

Recession-Proof Stock #9: Tennant Co. (TNC)

5-year Expected Annual Returns: 15.3%

Tennant Company is a machinery company that produces cleaning products and that offers cleaning solutions to its customers.

In the US, the company holds the market leadership position in its industry, but the company also sells its products in more than 100 additional countries around the globe. Tennant was founded in 1870.

Tennant Company reported its second quarter earnings results in August. The company announced that it generated revenues of $319 million during the quarter, which was 4% less than the top line number from the previous year’s quarter.

This was better than the performance during the most recent quarter, when the revenue decline was larger. Revenues were lower compared to what the analyst community had forecasted.

Tennant Company generated adjusted earnings-per-share of $1.49 during the second quarter, which was less than what the analyst community had forecasted, and which was down compared to the previous year.

Management is forecasting that adjusted earnings-per-share will fall into a range of $5.70 to $6.20 in 2025, which means that earnings will decline this year. At the midpoint of the guidance range, $5.95, Tennant’s earnings-per-share would be down around 10%.

Click here to download our most recent Sure Analysis report on TNC (preview of page 1 of 3 shown below):

Recession-Proof Stock #8: Primerica Inc. (PRI)

5-year Expected Annual Returns: 15.7%

Primerica provides term life insurance to middle-income households in the United States and Canada. On behalf of third parties, it also offers mutual funds, annuities, managed investments, and other financial products.

As of September 30th, 2025, PRI insured more than 5.5 million lives and had approximately 3 million client investment accounts.

The company’s offerings are sold via a network of 152,200 licensed sales representatives, who are independent contractors. PRI is organized into the following three operating segments.

The Term Life Insurance segment provides customers with term life insurance in the United States and Canada. That’s done via its Primerica Life, NBLIC, and Primerica Life Canada insurance subsidiaries.

The Investment and Savings Products segment offers savings and investment vehicles to meet the needs of clients in all stages of life. Products include mutual funds, managed investments, and fixed and fixed-indexed annuities.

The Corporate and Other Distributed Products segment distributes mortgage loans through mortgage-licensed loan originators, auto and homeowners’ insurance referrals, and prepaid legal services.

On November 5th, PRI shared its earnings report for the third quarter ended September 30th, 2025. The company’s total adjusted operating revenue rose by 8.9% over the year-ago period to $838.9 million in the quarter.

Adjusted diluted EPS surged 8.5% higher year-over-year to $6.33 in the quarter. That topped the analyst consensus during the quarter by $0.79.

Click here to download our most recent Sure Analysis report on PRI (preview of page 1 of 3 shown below):

Recession-Proof Stock #7: Hanover Insurance Group (THG)

5-year Expected Annual Returns: 16.2%

The Hanover Insurance Group is a holding company whose primary business is offering property and casualty insurance products and services.

The company markets itself through independent agents and brokers in the United States. In 2024, Personal Lines accounted for approximately 41% of segmented revenues; Commercial Lines, 36%; Other Property & Casualty, 23%. The company operates an investment portfolio that is primarily exposed to fixed-income securities.

On October 29th, 2025, The Hanover Insurance Group reported its financial results for the third quarter for the period ending September 30th, 2025.

The company announced net income of $178.7 million, or $4.90 per diluted share, a substantial improvement from $102.1 million, or $2.80 per diluted share, in the same period the previous year.

Operating income for the quarter was $185.6 million, or $5.09 per diluted share, compared to $111.3 million, or $3.05 per diluted share, in the prior-year quarter.

The combined ratio for the third quarter, excluding catastrophes, was 88.1%, reflecting enhanced underwriting profitability across all segments.

This improvement was underpinned by disciplined pricing, with renewal price increases of 8.3% in Specialty, 9.9% in Core Commercial, and 10.5% in Personal Lines.

Net investment income rose by 27.5% to $117.0 million, supported by higher earned yields and strong operational cash flows. The overall combined ratio stood at 91.1%, with catastrophe losses of $46.2 million, or 3.0 points of the combined ratio, mainly from weather-related events.

Click here to download our most recent Sure Analysis report on THG (preview of page 1 of 3 shown below):

Recession-Proof Stock #6: Becton Dickinson & Co. (BDX)

5-year Expected Annual Returns: 17.0%

Becton, Dickinson & Co. is a global leader in the medical supply industry. The company was founded in 1897 and has 75,000 employees across 190 countries.

The company generates about $20 billion in annual revenue, with approximately 43% of revenues coming from outside of the U.S.

Becton, Dickinson & Co., or BD, is a global leader in the medical supply industry. The company generates almost $22 billion in annual revenue, with approximately 43% of revenues coming from outside of the U.S.

BD is composed of three segments. Products sold by the Medical Division include needles for drug delivery systems, and surgical blades. The Life Sciences division provides products for the collection and transportation of diagnostic specimens. The Intervention segment includes several of the products produced by what used to be Bard.

On August 7th, 2025, BD announced results for the third quarter of fiscal year 2025, which ended June 30th, 2025. For the quarter, revenue improved 10.4% to $5.5 billion, which was $10 million more than expected.

On a currency neutral basis, revenue increased 8.5%. Adjusted earnings-per-share of $3.68 compared favorably to $3.50 in the prior year and was $0.28 more than anticipated.

For the quarter, U.S. grew 10% while international was up 11% on a reported basis. Excluding currency exchange, international was higher by 9.8%. Organic growth was higher by 3% for the period.

The Medical segment grew 3.2% organically to $2.93 billion, due to continued gains in Mediation Management Solutions and Pharmaceutical Systems.

Life Science fell 1.14% to $1.25 billion. Growth in Specimen Management was more than offset by declines in Biosciences and Diagnostic Solutions. Interventional returned to growth, with sales up 6.8% to $1.26 billion due to the Urology and Critical Care division. Surgery and Peripheral Intervention were also higher for the period.

BD partially reaffirmed its outlook for fiscal year 2025 as well. Revenue is still projected to be in a range of $21.8 billion to $21.9 billion, compared to $21.7 billion to $21.9 billion and $21.9 billion to $22.1 billion previously. Adjusted earnings-per-share is expected to be in a range of $14.30 to $14.45.

Click here to download our most recent Sure Analysis report on BDX (preview of page 1 of 3 shown below):

Recession-Proof Stock #5: PPG Industries (PPG)

5-year Expected Annual Returns: 17.2%

PPG Industries is the world’s largest paints and coatings company. Its only competitors of similar size are Sherwin-Williams and Dutch paint company Akzo Nobel.

PPG Industries was founded in 1883 as a manufacturer and distributor of glass (its name stands for Pittsburgh Plate Glass) and today has approximately 3,500 technical employees located in more than 70 countries at 100 locations.

On July 17th, 2025, PPG Industries raised its quarterly dividend 4.4% to $0.71, extending the company’s dividend growth streak to 54 consecutive years.

On October 28th, 2025, PPG Industries reported third quarter results for the period ending September 30th, 2025. For the quarter, revenue declined 10.7% to $4.1 billion, but this was $50 million above estimates. Adjusted earnings-per-share of $2.13 matched the prior year’s result, but this was $0.05 better than expected.

Organic growth was 2% for the quarter due to higher prices and improved product volume. Revenue for Global Architectural Coatings, which was formerly part of Performance Coatings, grew 1% to $1.01 billion as higher prices and a benefit from foreign currency translation was offset by weaker volume and divestitures.

Latin America and Asia Pacific performed well during the period. Performance Coatings grew 3% to $1.41 billion due to higher prices that were offset by weaker volume. Aerospace, protective and marine coatings, and traffic solutions all were higher for the quarter.

Revenue for Industrial Coatings was unchanged at $1.66 billion. Volume grew 4%, but was offset by slightly weaker pricing and divestitures. Automotive OEMs returned to growth during the quarter, with volume growth seen in all regions. This business outpaced the global automotive industry by ~300 basis points.

PPG Industries repurchased ~$150 million worth of shares during Q3 and has retired ~$690 million worth of shares year-to-date.

For 2025, the company now expects adjusted earnings-per-share in a range of $7.60 to $7.70.

Click here to download our most recent Sure Analysis report on PPG (preview of page 1 of 3 shown below):

Recession-Proof Stock #4: Sonoco Products (SON)

5-year Expected Annual Returns: 18.6%

Sonoco Products provides packaging, industrial products and supply chain services to its customers. The markets that use the company’s products include those in the appliances, electronics, beverage, construction and food industries.

The company generates more than $5 billion in annual sales. Sonoco Products is now composed of 2 major segments, Consumer Packaging, and Industrial Packaging, with all other businesses listed as “All Other”.

On October 22nd, 2025, Sonoco Products reported third quarter results for the period ending September 28th, 2025. For the quarter, revenue grew 57.8% to $2.13 billion, but this was $20 million below expectations. Adjusted earnings-per-share of $1.92 compared to $1.49 in the prior year, but this was $0.01 below estimates.

Revenues and earnings once again benefited from the addition of Eviosys. For the quarter, Consumer Packaging revenues were up 117% to $1.44 billion, mostly due to contributions from Eviosys. Results were also aided by price increases that were implemented to offset tariffs and favorable currency exchange rates.

Industrial Paper Packing sales were unchanged at $585 million as price increases were offset by weaker volume following two plant divestitures in China last year. All Other grew 1% to $108 million as volume gains in temperature-assured packaging was only partially offset by lower volume in industrial plastics.

Sonoco Products provided an updated outlook for 2025 as well, with the company now expecting adjusted earnings-per-share in a range of $5.65 to $5.75 for the year, down from ~$6.00 previously.

Click here to download our most recent Sure Analysis report on SON (preview of page 1 of 3 shown below):

Recession-Proof Stock #3: H2O America (HTO)

5-year Expected Annual Returns: 21.5%

H2O America, formerly known as SJW Group, is a water utility company that produces, purchases, stores, purifies and distributes water to consumers and businesses in the Silicon Valley area of California, the area north of San Antonio, Texas, Connecticut, and Maine.

It also has a small real estate division that owns and develops properties for residential and warehouse customers in California and Tennessee. The company generates about $670 million in annual revenues.

On July 8th, 2025, H2O America announced that it purchased Quadvest for $540 million. This purchase adds to the company’s position in the Houston area.

Quadvest has 50,500 active connections, almost 91,000 connections under contract and pending development, 50 water treatment plants, 27 wastewater treatment plants, and 89 lift stations and underground assets.

On October 28th, 2025, H2O America reported third quarter results for the period ending September 30th, 2025. For the quarter, revenue improved 6.9% to $240.6 million, which beat estimates by $2.1 million.

Earnings-per-share of $1.27 compared favorably to earnings-per-share of $1.18 in the prior year and was $0.09 better than expected.

For the quarter, higher water rates overall added $21.2 million to results and higher customer usage added $700K. Operating production expenses totaled $175.9 million, which was a 6% increase from the prior year.

The increases were due to higher pensions costs, salaries and wages, and inflationary increases.

Click here to download our most recent Sure Analysis report on HTO (preview of page 1 of 3 shown below):

Recession-Proof Stock #2: Stepan Co. (SCL)

5-year Expected Annual Returns: 21.8%

Stepan manufactures basic and intermediate chemicals, with surfactants making up most of its revenue. It should do about $2.3 billion in revenue this year.

Stepan is also a Dividend King, having increased its payout for 58 consecutive years. Stepan posted third quarter earnings on October 29th, 2025, and results were quite weak.

Adjusted earnings-per-share came to 48 cents, but that missed estimates widely by 13 cents. Revenue was up 8% year-over-year to $590 million, but also missed by $3.5 million.

Surfactants net sales were $422 million, a 10% increase from the year-ago period. Adjusted EBITDA fell $6.2 million, or 14%, due to volume contraction, higher startup expenses, and rising raw material prices.

Polymers net sales were $144 million, a 4% decline year-over-year. Volume was up 8%, while adjusted EBITDA was down 4%, or $1 million, due to lower unit margins and unfavorable mix.

Consolidated adjusted EBITDA was up $3.1 million, or 6%, year-over-year. Cash from operations was $69.8 million, while free cash flow was $40.2 million driven by reductions in working capital.

The dividend was raised by 2.6%, Stepan’s 58th consecutive annual increase.

Click here to download our most recent Sure Analysis report on SCL (preview of page 1 of 3 shown below):

Recession-Proof Stock #1: FactSet Research Systems (FDS)

5-year Expected Annual Returns: 22.3%

FactSet Research Systems, a financial data and analytics firm founded in 1978, provides integrated financial information and analytical tools to the investment community in the Americas, Europe, the Middle East, Africa, and Asia-Pacific.

The company provides insight and information through research, analytics, trading workflow solutions, content and technology solutions, and wealth management.

On September 18th, 2025, FactSet Research Systems announced Q4 2025 results, reporting non-GAAP EPS of $4.05 for the period, which missed market consensus by $0.08, and revenue grew 6.2% to $596.9 million. Operating performance also strengthened, with Q4 GAAP operating margin rising sharply to 29.7%.

GAAP diluted EPS surged 73.7% to $4.03, reflecting higher revenue and one-time gains from a business divestiture. For the full year, GAAP revenues climbed 5.4% to $2.32 billion, marking the company’s 46th consecutive year of revenue growth.

Organic ASV grew 5.7% to $2.37 billion, underscoring steady client demand and expansion across all regions. For the full fiscal year, FactSet delivered a 32.2% GAAP operating margin and $15.55 in diluted EPS, up 11.8% year over year.

Adjusted metrics were slightly lower, as increased technology spending weighed on margins, but overall profitability remained strong. Looking ahead, FactSet expects fiscal 2026 GAAP revenues between $2.42 billion and $2.45 billion and organic ASV growth of 4% to 6%.

Click here to download our most recent Sure Analysis report on FDS (preview of page 1 of 3 shown below):

Final Thoughts

While no stock is ultimately recession-proof, there are certain sectors and industries that tend to be more resilient during economic downturns.

In general, essential goods and services, such as healthcare, utilities, and consumer staples, have a better history in terms of generating solid results and continuing to grow their dividends during tough economic conditions.

The stocks we have selected for this article have already proven they can stand tall during recessionary environments quite sufficiently, as proven by their extended dividend growth track records.