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With Recession Chances Higher After Trump's Tariffs, Here Are 2 Dividend Stocks I'm Loading Up On
The Motley Foolยท2025-04-17 12:45

Group 1: Tariff Impact and Market Sentiment - The announcement of new tariffs has led to a significant decline in the stock market and increased concerns about a potential recession, with JPMorgan raising the recession probability to 60% [2] - Despite rising recession fears, some stocks, particularly dividend stocks, are still considered viable investment options [3] Group 2: Coca-Cola - Coca-Cola's stock has increased over 14% year-to-date, contrasting with the broader market decline following tariff announcements [5] - The company's strong financials, world-class distribution network, and consistent product demand make it a recession-resistant investment [6][7] - Coca-Cola offers a reliable quarterly dividend of $0.51, with an average yield of around 2.9% over the past year, and has increased its annual dividend for 63 consecutive years [9][10] Group 3: AT&T - AT&T's stock has risen over 64% in the past year, marking a turnaround from previous struggles [11] - The company faces challenges due to its reliance on imported goods, which may impact margins due to new tariffs, but it has sufficient free cash flow to maintain its dividend [12][13] - AT&T remains a leader in the essential telecom industry, with strong growth in its postpaid phone and fiber businesses, adding 1.7 million and 1 million net customers respectively in 2024 [15] - The spin-off of WarnerMedia has allowed AT&T to focus on its core telecom business, enhancing its commitment to shareholder value [16]