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2 Stocks That Raised Their Dividends in the Last 6 Recessions
RLIRLI(RLI) The Motley Fool·2025-04-06 22:23

Group 1: Market Overview - Investors are facing turbulent markets in 2025, with the S&P 500 down 15% since its all-time high on February 19 due to President Trump's announcement of reciprocal tariffs on 180 countries [1] - Recession fears are resurfacing, prompting investors to reconsider their investment strategies [2] Group 2: Dividend Stocks - Dividend stocks are becoming increasingly attractive in the current economic climate, but not all dividend stocks are equally strong [2] - Companies with robust competitive advantages can thrive across economic cycles, making them worthy of consideration [2] Group 3: RLI Corp. - RLI Corp. has raised its dividend for 50 consecutive years, showcasing stability in the insurance industry [4][9] - The company operates in niche markets, primarily focusing on excess and surplus (E&S) insurance, which allows for higher profit margins due to selective risk coverage [5][8] - RLI's total returns, including reinvested dividends, have averaged 16.8% annually over the past 50 years, outperforming the broader market [9] Group 4: S&P Global - S&P Global has raised its dividend for 53 consecutive years and holds a 50% market share in the credit rating industry, making it a dominant player [10][11] - The company benefits from ongoing debt issuance, as countries and companies frequently raise debt for various purposes [12] - Despite vulnerability to fluctuations in borrowing activity, S&P Global's data analytics segment provides stability through contractual agreements and subscription revenues [13][14] - The company has delivered an annual return of 14% when factoring in both dividends and stock price appreciation, making it a solid choice for investors seeking cash flow and stability [15]