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5 Best Recession Proof Stocks to Buy for Q4 2025
In this guide
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Even the biggest businesses in the world can fall on hard times during a recession. Some companies however, perform well during economic downturns and remain top stocks even in the bad times: they’re recession proof. Read on to find the best five stocks to buy during a recession in 2025.
What are the top recession proof stocks to buy?
Copy link to sectionThe table below includes some of the leading recession stocks to buy. Click each one’s ticker symbol for its latest price information or continue reading to find out why they’ve made our list.
| # | Stock symbol | Company name | Learn more |
|---|---|---|---|
| 1 | WMT | WalMart | Learn more > |
| 2 | PG | Procter & Gamble | Learn more > |
| 3 | ABT | Abbott Laboratories | Learn more > |
| 4 | BTI | British American Tobacco | Learn more > |
| 5 | DG | Dollar General | Learn more > |
1. Walmart (NYSE: WMT)
Copy link to section- Market Cap: $539 billion
- 2023 Revenue: $648 billion
- Forward Revenue Growth: 4.90%
- Dividend yield: 1.25%
- P/E Ratio: 27
- Stock Price: $67
Walmart is one of the best stocks for investors to put their money in during a recession. It’s the largest retailer in the world and operates a chain of hypermarkets, discount department stores, and grocery stores. With nearly 11,000 retail locations across 24 countries it has a customer base that will only grow as consumers look to save money on everyday purchases.
When global economies went into meltdown during the Great Recession of 2007 – 2009 Walmart investors were protected from market volatility. Its share price rallied by over 30% in 2008, compared to the 35% loss experienced by the S&P during the same period. Since then, its price has seen steady growth and reached its highest level ever in 2022.
During recessions industries such as consumer goods and staples perform well. Walmart not only sells discounted groceries in retail locations but also approximately 35 million items annually through its website. With such a wide global reach, a growing online presence, and historically strong performance, Walmart is a top recession proof stock.
2. Procter & Gamble Co (NYSE: PG)
Copy link to section- Market Cap: $393 billion
- 2023 Revenue: $82 billion
- Forward Revenue Growth: 2.85%
- Dividend yield: 2.4%
- P/E Ratio: 25
- Stock Price: $166
Dividend king, Procter & Gamble is one of the worlds most reliable and stable businesses. Founded over 180 years ago, the consumer staples giant has paid dividends for 131 years and has increased them for a staggering 65 consecutive years. It has over 60 products in 10 categories ranging from home care to oral care and everything in between.
The majority of its products are not only necessary, but in constant demand. It has developed leading brands such as Gillette, OralB, Olay, Pampers, Tide, Crest, and Tampax. In recent years the business has been through a restructure and dropped 100 brands from its line while focusing on the 65 that made up 95% of its profits. P&G’s revenue surged to over $70 billion in 2020 as the pandemic led to shutdowns. Since then, its revenue has soared to over $82 billion, helped by higher volume and prices.
PG has traditionally sold its products in retail stores across the globe and is already looking to the future. Recent acquisitions of online-only companies has resulted in 14% of its total revenue coming from the internet. Its diverse range of products, many of which are necessary, makes Procter & Gamble one of the best consumer staples stocks to buy in a recession.
Procter & Gamble’s has also boosted its dividends even in the worst periods. It has grown its payouts by 67 years and the trend will continue since it has a payout ratio of 57%.
3. Abbott Laboratories (NYSE: ABT)
Copy link to section- Market Cap: $180 billion
- 2023 Revenue: $82 billion
- Forward Revenue Growth: 0.8%
- Dividend yield: 2.12%
- P/E Ratio: 22
- Stock Price: $103
The healthcare industry is generally one of the top performers during a recession. With so many companies operating within the sector, finding the best investment can be tickey. Abbott Laboratories is our experts’ recommendation for a recession proof stock in healthcare. Founded over a century ago, ABT now operates globally in 160 countries.
Like Procter & Gamble above, Abbott Laboratories belongs to the dividend aristocrats club and has increased shareholder payouts for the past 49 years. It’s a diverse business and operates in four main segments: Nutritional products, pharmaceuticals, diagnostics, and medical devices.
In recent times its stock has been a strong performer even in the worst of periods. Its revenue jumped from $31.9 billion in 2019 to over $34 billion in 2020 even as the Covid-19 pandemic happened. Since then, revenues jumped to $40 billion in 2024 while its net income moved to over $6 billion. Abbott has a strong balance sheet and will continue to weather future storms well.
4. British American Tobacco (NYSE: BTI)
Copy link to section- Market Cap: $67 billion
- 2023 Revenue: $34.7 billion
- Forward Revenue Growth: 1.29%
- Dividend yield: 9.5%
- P/E Ratio: 6.5
- Stock Price: $30
British American Tobacco is another consumer goods company to make our list. Founded in 1902 it is now the largest tobacco company in the world based on net sales to its 150 million consumers. Some of its most famous brands include Dunhill, Camel, Lucky Strike, Pall Mall, and Rothmans amongst others.
As the world’s population becomes more health conscious, concerns for the tobacco industry have been growing in recent times. However, job losses and rising unemployment experienced during recessionary periods bode well for companies like BTI as individuals turn to tobacco and alcohol to drown their worries.
Its share price has taken a hit in recent years and has lost around 50% of its value from its 2017 highs. Competition from the likes of Phillip Morris and the popularity of vaping hasn’t helped its performance. However, in times of recessions, adding a dividend paying tobacco business like BTI to your portfolio could be a prudent move.
The main reason for investing in BAT is that it has one of the best dividend yields in the industry. It pays almost 10% annually, which can provide you with income in tough times.
5. Dollar General (DG)
Copy link to section- Market Cap: $27 billion
- 2023 Revenue: $38.7 billion
- Forward Revenue Growth: 4.6%
- Dividend yield: 1.88%
- P/E Ratio: 17
- Stock Price: $125
Dollar General is one of the biggest retailers in the US with over 18.6k stores in 47 states. This company is known for selling most items for just $1, making it highly popular among the middle and low-class families.
Dollar General and other similar companies like Five Below and Dollar Tree do well when the economy is growing and when there is a recession. Its revenue surged to over $34 billion in 2020 as the country moved into a lockdown.
Where to buy the best recession proof shares
Copy link to sectionTo buy recession proof stocks you’ll need to use an online broker. Check out the table below which includes the best brokers around to buy shares. Click on any of the links to register in just a few minutes.
Plus500
CFD service. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorised by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe such as leverage limitations and bonus restrictions.
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What is a recession proof stock?
Copy link to sectionIt’s a company that tends to perform well during a recession. Usually recession proof stocks belong to certain industries that experience steady demand in good and bad times. You’ll find the best recession proof stocks within the healthcare industry, consumer staples sector, utilities, and energy industry.
Are recession proof shares a good investment?
Copy link to sectionYes it is worth including some recession proof stocks to your portfolio. This is especially true if you believe a recession is on the horizon. In general, the stock market tends to decline during tough economic times and having a portion of your holdings in companies that are known to be recession proof is a good defensive play.
As we’ve previously mentioned, the best recession proof stocks can be found in certain industries. Companies that provide goods or services that are necessary are a good choice. The healthcare and consumer staples industries in particular can provide a number of good recession proof investments.
Timing your investment can be the difficult part as it’s impossible to know exactly when a recession will come into play.
Methodology: How we choose the best recession proof stocks
Copy link to sectionAt Invezz, our mission is to empower our readers with the most accurate and reliable financial information. Our curated selection of the best stocks in specific industries is designed to provide investors with well-researched, expertly reviewed stock recommendations. Our team follows a rigorous process to ensure our readers receive high-quality, trustworthy stock selections.
- Initial screening. Our team of experienced stock market analysts conducts an initial screening of stocks within the chosen industry. This involves analyzing a broad range of companies based on key financial metrics such as revenue growth, profitability, debt levels, and market capitalization.
- Earnings reports and financial analysis. Analysts review the latest earnings reports of shortlisted companies. This includes a detailed assessment of financial statements, looking for consistent earnings growth, strong balance sheets, and positive cash flow trends. Special attention is given to year-over-year performance and quarterly results.
- Sector analysis. A comprehensive sector analysis is conducted to understand the macroeconomic factors affecting the industry. This includes examining market trends, competitive landscape, regulatory changes, and technological advancements. Our analysts utilize industry reports, market research, and economic forecasts to gain a holistic view of the sector.
- Analyst recommendations. We consider recommendations from reputable sources such as Barron’s and Zacks. These sources provide expert opinions and ratings on stocks, which serve as an additional layer of validation for our selections. Incorporating external analyst recommendations ensures that our curated stocks are backed by a consensus of expert views.
- Internal review. After the initial selection by our analysts, the chosen stocks are reviewed by a sub-editor. The sub-editor ensures that the analysis is clear, concise, and adheres to Invezz’s editorial guidelines. This review process helps maintain the quality and readability of our content, making it accessible to a broad audience.
- Quarterly updates. To ensure our stock recommendations remain relevant and up-to-date, we update the curated section quarterly. Each update cycle involves re-evaluating the stocks based on the latest financial reports, industry developments, and market conditions. This regular update process ensures that our recommendations reflect the most current information available.
Our approach combines expert analysis, comprehensive research, and regular updates to deliver reliable and insightful investment recommendations. Read more about our review process and editorial policy.