Industries That Thrive During Recessions

A look at some recession-proof stocks to consider adding to your portfolio.

By Matthew DiLallo – Updated May 5, 2025 at 2:59 PM | Fact-checked by Frank Bass

Key Points

Invest in recession-resistant sectors like healthcare, consumer staples, and utilities for stability.
Diversify your portfolio with a mix of blue chip and defensive stocks to reduce risk.
Consider the financial strength and dividend history of companies in recession-proof industries.

Loading paragraph...

Cloud Computing

Cloud computing is a network of interconnected servers and data centers working together to deliver a service through the Internet.

Loading paragraph...

Dividends Per Share

The dividends a company pays out per share and a commonly used per-share metric.

Loading paragraph...

Related investing topics

Loading paragraph...

Is It Safe to Invest During a Recession?

When money is tight, where should your investment dollars go?

Accounts That Earn Compounding Interest

Interest compounds when interest payments also earn interest. Learn how to get compounding interest working for your portfolio.

How to Research Stocks

Good research can help investors find the best companies to invest in.

Loading paragraph...

Loading faq...

About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Matt DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, Home Depot, Johnson & Johnson, Kenvue, Kroger, Medtronic, NextEra Energy, PepsiCo, Realty Income, and Waste Management. The Motley Fool has positions in and recommends Costco Wholesale, Home Depot, Kenvue, NextEra Energy, Pfizer, Realty Income, and Walmart. The Motley Fool recommends Brookfield Infrastructure Partners, CVS Health, Johnson & Johnson, Kroger, Medtronic, UnitedHealth Group, and Waste Management and recommends the following options: long January 2026 $13 calls on Kenvue, long January 2026 $75 calls on Medtronic, and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.

View Premium Services

Johnson & Johnson (JNJ +0.55%): The iconic healthcare company develops and sells medical devices and pharmaceuticals. These products benefit from stable demand throughout the economic cycle, making investing in Johnson & Johnson stock relatively safe during a recession. One evidence of this is its unbroken streak of 62 consecutive annual dividend increases, keeping it in the elite group of Dividend Kings.
CVS Health (CVS -1.24%): This health company operates a leading drugstore chain, administers a large-scale pharmacy benefits program, and provides health insurance to many people. Demand for its services remains relatively stable even when the economy falters.
Pfizer (PFE -0.52%): Together with its partners, Pfizer makes some of the world's best-selling pharmaceutical drugs and vaccines, covering a wide range of medical issues. People need access to these lifesaving products, no matter what's happening in the economy.
UnitedHealth Group (UNH -1.06%): The diversified healthcare company offers a broad array of products and services. These include information and technology-enabled health services, healthcare coverage, and benefit services people need during economic downturns.
Medtronic (MDT +0.07%): The medical device maker tends to produce relatively steady growth. That has certainly been the case with its dividend, which has risen for 47 straight years.

Consumer staples

People need to eat even when the economy hits a rough patch. However, consumers tend to shift their eating habits from dining at restaurants to preparing more food at home. Grocery stores and packaged food makers tend to be highly recession-resistant. Likewise, other consumer staples, such as household and personal products, tend to experience stable demand in recessions.

Some examples of recession-resistant companies that manufacture or sell consumer staples are:

Kroger (KR +1.48%): Grocery stores such as Kroger, one of the country's largest supermarkets by revenue, tend to benefit from recessions as consumers cook more often at home.
PepsiCo (PEP -0.10%): Pepsi makes several well-known brands (e.g., Pepsi, Quaker Oats, and Aquafina) that line grocery store shelves. PepsiCo's sales tend to remain relatively stable during difficult times, putting it in a strong position to weather a recession. The company extended its dividend growth streak to 53 straight years in 2025.
Procter & Gamble (PG +0.38%): The household and personal products company sells familiar brands, such as Pampers, Downy, Tide, Charmin, Gillette, Head & Shoulders, Dawn, and Crest. Its consumer product brands remain in demand during recessions. It delivered its 69th consecutive annual dividend increase in 2025.
General Mills (GIS +1.26%): The leading maker of packaged food products owns beloved brands such as Cheerios, Nature Valley, Blue Buffalo, Häagen-Dazs, Pillsbury, Betty Crocker, Yoplait, and Annie's. Its brands never go out of style. Instead, demand tends to pick up when people shift their food spending from restaurants to eating at home.
Kenvue (KVUE +1.74%): The former Johnson & Johnson subsidiary is one of the world leaders in consumer healthcare products. The company sells iconic brands, including Listerine, Tylenol, Neutrogena, and Band-Aid, which tend to see relatively steady demand during recessions.

Industries That Thrive During Recessions

A look at some recession-proof stocks to consider adding to your portfolio.

Key Points

Cloud Computing

Dividends Per Share

Related investing topics

Is It Safe to Invest During a Recession?

Accounts That Earn Compounding Interest

How to Research Stocks

About the Author

Premium Investing Services

What stocks do well in a recession?

What stocks should I buy before a recession?

What stocks to avoid during a recession?

Where is your money safest during a recession?

Diversified portfolios better withstand recessions

Related investing topics

Add some recession-proof businesses to your portfolio

FAQ

Utility companies

Historically recession-proof industries

Healthcare

Consumer staples

Cost-conscious retail