5 Recession-Proof Stocks With High Cash, Low Debt, Strong Dividends To Protect Your Portfolio In 2023

Markets are increasingly concerned about an impending recession following the latest U.S. economic data, which showed a slowing in the pace of growth in the labor market and service sector activity in March as a result of the first negative spillovers arising from elevated interest rates and banking sector difficulties.  

Investors' attention may soon shift to strong, low-debt, high-cash-flow stocks with businesses that prosper even during economic downturns.    

Benzinga screened 5 recession-proof stocks with the following characteristics: 

• Mega-cap (market capitalization more than $200 billion).
• An availability of cash sufficient to pay off all short-term debts.
• A total debt lower than revenue from the previous year.  
• A positive dividend yield.
• Net debt is less than EBITDA.

Read More: Job Market Cools, Unemployment Ticks Lower: US Adds 236K Jobs In March, Missing Economist Expectations

5) Johnson & Johnson JNJ

• Funds from operation (FFO) + Cash to short-term debt: 3.5x
• Total debt/revenue (last 12 months): 0.4x
• Net Debt/EBITDA (LTM): 0.5x
• Dividend yield expected (next 12 months): 2.84%

4) Merck & Co, Inc. MRK

• Funds from operation (FFO) + Cash to short-term debt: 14.5x
• Total debt/revenue (last 12 months): 0.5x
• Net Debt/EBITDA (LTM): 0.8x
• Dividend yield expected (next 12 months): 2.66%

3) Pfizer Inc. PFE

• Funds from operation (FFO) + Cash to short-term debt: 14.5x
• Total debt/revenue (last 12 months): 0.4x
• Net Debt/EBITDA (LTM): 0.4x
• Dividend yield expected (next 12 months): 4.02%.

2) Chevron Corporation CVX

• Funds from operation (FFO) + Cash to short-term debt: 22x
• Total debt/revenue (last 12 months): 0.1x
• Net Debt/EBITDA (LTM): 0.1x
• Dividend yield expected (next 12 months): 3.59%

1) Exxon Mobil Corp XOM

• Funds from operation (FFO) + Cash to short-term debt: 49.1x
• Total debt/revenue (last 12 months): 0.1x
• Net Debt/EBITDA (LTM): 0.2x
• Dividend yield expected (next 12 months): 3.2%

Read Also: These 5 High-Growth Small-Cap Stocks Surged More Than 100% In Q1: What's Next?

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