Cramer’s 5 Recession-Resistant Stocks
In the wake of Friday’s disappointing jobs report, “Mad Money” host Jim Cramer thinks investors need to prepare for the possibility of a recession.
After all, the Labor Department said that non-farm payrolls grew by just 80,000 jobs in June, the third straight month below 100,000. Job creation was too weak to bring down the country's 8.2 percent unemployment rateand the report fueled concerns that Europe's debt crisis was shifting the U.S. economy into low gear, if not closer to a recession.
In turn, Cramer detailed a diversified portfolio of five recession-resistant stocks, which he thinks could “do far better than most if this economy keeps slowing down.”
Read on for Cramer’s 5 Recession-Resistant Stocks
General Mills (GIS)
In a recessionary environment, Cramer thinks demand for commodities could fall, thereby driving down commodity prices. So investors should look for companies that have been hurt by high commodity costs and were able to pass those costs onto the consumer. After all, Cramer said the price of commodities may fall, but the elevated prices on products are likely to stay.
To Cramer, General Mills fits the bill.
“This company has been murdered by raw costs for everything from grain to plastic,” Cramer said. “General Mills has just weathered the worst commodity cost crisis in ages and has come out much stronger than almost every other food company.”
Cramer likes that General Mills’ stock sports a juicy 3.4 percent dividend yield. Plus, General Mills recently raised its dividend payout by 8 percent, which he considers “a classic sign of confidence.” The food company has increased its dividend twelve times in eight years.
Read on for Cramer’s 5 Recession-Resistant Stocks
Dollar General (DG)
