For starters, recession-proof stocks are those that tend to maintain their value or even increase in value during times of economic downturns, such as a recession. These stocks are thought to be less susceptible to fluctuations in the market due to economic cycles. Industries that are often considered recession-proof include utilities, consumer staples, and healthcare.
These industries tend to have a relatively consistent demand for their products or services, regardless of the state of the economy. It is important to understand, however, that no stock is completely immune to market fluctuations and all investments come with some level of risk. Considering this, here are two recession-proof stocks to keep an eye on in the stock market this year.
Recession-Proof Stocks To Watch In 2023
- Broadcom Inc. (NASDAQ: AVGO)
- Bank of America Corporation (NYSE: BAC)
Broadcom Inc. (AVGO Stock)
First up, Broadcom Inc. (AVGO) is a technology company that designs and develops a range of semiconductor and infrastructure software products. The company’s products are used in a variety of end markets, including wired infrastructure, wireless communications, enterprise storage, and industrial and others.
In December, Broadcom reported better-than-expected Q4 2022 financial results. Diving in, the company reported Q4 2022 earnings of $10.53 per share, along with revenue of $8.9 billion. In addition, Broadcom also reported that it grew revenue by 20.6% versus the same period, a year prior. Also in the report, Broadcom announced it increased its quarterly common stock dividend by 12% to $4.60 per share, up from the previous quarter. This results in an annual dividend yield of 3.27%.
Over the last six months of trading, shares of AVGO stock have rebounded by 18.10%. Meanwhile, as of Wednesday’s lunchtime trading session, Broadcom stock is trading green on the day up 1.57% at $562.15 a share.
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Bank Of America (BAC Stock)
Next, Bank of America (BAC) is a multinational investment bank and financial services corporation. Bank of America provides a range of banking and financial services to individuals, small businesses, and large corporations, including checking and savings accounts, loans, credit cards, and investment products.
Back in October, Bank of America reported its Q3 2022 financial results. In detail, the company posted Q3 2022 earnings of $0.81 per share and revenue of $30.4 billion. These revenue figures reflect a 26.4% increase compared to the same period, the previous year. Currently, BAC offers its shareholders an annual dividend yield of 2.54%.
Moving along, over the last six months, shares of BAC stock have recovered by 10.69%. While, during Wednesday’s early afternoon trading session, Bank of America stock is trading higher on the day by 3.24% at $34.58 a share.
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