3 Recession-Ready Stocks That Thrive When the Economy Sputters

Core Viewpoint - Investors are closely monitoring recession indicators following the first federal funds rate cut of the year, with a struggling housing market and labor market warnings suggesting a potential recession, despite rising stock prices [1] Group 1: Church & Dwight (CHD) - Church & Dwight Co. Inc. is recognized for its essential household and personal care brands, which may provide insulation from a potential recession due to their perceived necessity [2][3] - The company has a long history of dividend increases, with a yield of 1.36% and a conservative payout ratio of 55.66%, making it a potential source of stability during volatile periods [3] - CHD shares have declined over 10% year-to-date, attributed to tariff impacts, but analysts predict a recovery with an upside potential of over 14% [4] Group 2: Spire Inc. (SR) - Spire Inc. is a regional natural gas utility firm expanding through the acquisition of Piedmont Natural Gas, which is expected to add over 200,000 customers and contribute to an estimated 8% bottom-line increase in the coming year [5] - The company maintains low operational costs, growing by less than 1% year-to-date, which provides protection against inflation, alongside a dividend yield of 4.08% and a payout ratio of 67.12% [6] Group 3: Chemed Corp. (CHE) - Chemed Corp. operates in home services and healthcare, with its brands Roto-Rooter and Vitas Healthcare providing recession-resistant services [8] - The company faces challenges such as hospice care caps and rising insurance costs, which have pressured CHE shares to their lowest P/E level in over four years, presenting a potential buying opportunity for long-term strength [9]