2 actions that increased their dividends in the last 6 recessions

Investors have so far sailed the turbulent markets by 2025. On April 2, President Donald Trump announced Reciprocal rates to 180 countries Around the world, sending shock waves for the market. The fall further extended the decrease in S&P 500which dropped 15% since the maximum time on February 19.

The fears of the recession are returning and the recent volatility of the market has caused some investors to rethink their investments. In this difficult environment, dividend actions are worth considering. However, not all dividend actions are created the same. Some companies have robust Competitive advantages This allows them to prosper among economic cycles.

High quality companies are then displayed that have constantly increased their dividend payments during the last six recessions and have obtained stellar returns for investors along the way.

Money planted in the ranks of the ground to represent increasing cash. — Image Source: Getty’s pictures.

When you are looking for stability, maybe no industry is better than insurance. Space companies enjoy a constant demand among business cycles. They can also increase rates and adjust to inflationary pressures in the economy. Finally, some companies have an excellent subscription thanks to a long history of expertise, with a long history of increasing payment payments and appreciation of the price of actions.

Rli (NYSE: RLI) It is an excellent example of how to invest in a stable and constant business reward for long -term investors. The specialized insurance company operates on niche markets, focusing mainly on excess and surplus insurance markets (E&S).

RLI’s biggest offers are in the commercial excess and personal space of personal umbrellas. Its commercial excess policies are ideal for companies that need higher responsibility limits than their primary policies provide and can cover risks such as property damage, body injuries and legal expenses.

The personal umbrella business provides a responsibility for owners and automotive ones over what traditional policies provide. This helps to protect customers against important losses and is usually used by people of great net value as an added protection layer.

As a specialized insurer, RLI can be more selective about the risks it chooses to cover and the amount it charges. Its policies are tailor -made for companies or individuals and are not subject to strict regulatory requirements that have traditional properties and leave insurers. As a result, companies are rewarded for their experience and experience in difficult risk coverage and can enjoy the highest benefit margins in the process.

RLI has shown excellent subscription ability and a sound business model. The company has increased its dividend payment for more than 50 consecutive years. During the same period, it has obtained total returns (including reinverted dividends) of 16.8% per year, crushing the wider market along the road.

S&P Global (NYSE: SPGI) He plays an essential role in credit markets, evaluating the solvency of the entities and assigning them the credit qualifications. These ratings are important risk indicators that influence loan costs and investment decisions. For example, they are used to determine if a company’s bonds are investment or junk good.

What makes S&P a solid business is its industry. It is not easy to break in credit rankings. The regulatory high and decades of trust built with investors make it difficult for new participants to gain in the industry. As a result, S&P Global dominates the market with a 50%market share. Moody’s He is the second largest player, with a market share of 32%.

S&P Global benefits from the continuous debt broadcast. Countries are constantly increasing debt to finance their expenses, and companies increase debt to finance their business, acquisition or other purposes. As the economy expands, the global benefits of S&P, as we generally see a higher debt issuing activity.

That said, Global S & P primary revenue is vulnerable to loans. For example, by 2022, the highest interest rates maintained many companies outside and the broadcast activity. S&P global balances of this cyclic risk with their data analytics segment.

With this, S&P Global provides data and analytics to finance professionals, market data at financial institutions and software solutions for customers to manage and analyze data. Many of these are contractual agreements with subscription income, which provide stability between economic cycles.

The company has shown a solid operating model that has resisted the ups and downs of the markets. That is why it has increased its 53 -year -old payment. The dividend is modest, at 0.8%. However, when you consider its dividend along with the valuation of the price of the shares, S&P Global has given the investors by 14% annual stellar, which makes it another excellent option for investors seeking cash flows and stability in this turbulent market.

Before you buy shares to RLI, consider this:

It Motley Fool Stock Exchange Advisor The analyst team just identified what they think are the 10 best stocks For investors to buy now … and RLI was not one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Think about when Netflix Made this list on December 17, 2004 … if you invested $ 1,000 at the time of our recommendation, you would have 461,558 $!* Or when Nvidia Made this list on April 15, 2005 … if you invested $ 1,000 at the time of our recommendation, you would have $ 578,035!*

Now it’s worth noting Value AdvisorThe total average profitability is 730%: a higher market performance compared to 147% For the S&P 500. Do not miss the most recent list of 10 Top, available when you join Value Advisor.

See 10 stocks »

*The Exchange Minister returns from April 5 2025

Courtney Carlsen It has no position in any of the stocks mentioned. The Motley Fool has positions and recommends Moody’s and S&P Global. The mold’s fool has a Outreach policy.

2 actions that increased their dividends in the last 6 recessions was originally published by Motley Fool

Source link