Protect yourself 'from ugliness': These 3 top stocks have hiked their dividends for at least 25 straight years — and Cramer likes them for the rest of 2022

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Protect yourself 'from ugliness': These 3 top stocks have hiked their dividends for at least 25 straight years — and Cramer likes them for the rest of 2022
Protect yourself 'from ugliness': These 3 top stocks have hiked their dividends for at least 25 straight years — and Cramer likes them for the rest of 2022

Stocks are having a tough time in 2022. But not all stocks are the same — some are more resilient than others.

CNBC’s Jim Cramer argues that the Dividend Aristocrats — S&P 500 companies that have increased their dividend for at least 25 consecutive years — could offer investors protection during tough times for the market.

“Remember, the whole point of owning the Dividend Aristocrats is that they can try to protect you from the ugliness of the bear market on the way down,” he says. “That’s important given the fact that [Jerome Powell] is committed to bringing the pain.”

Cramer explains that from Jan. 3 through the market bottom on Jun. 16, his favorite 35 Dividend Aristocrats fell about 10%. While he acknowledges that the performance is “not great,” he also points out that the S&P 500 tumbled 23% while the Nasdaq plunged 32% during the same period.

Cramer has put together a list of 10 Dividend Aristocrats to own for the rest of this year. Here’s a look at three of them.

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Coca-Cola (KO)

Coca-Cola is a classic example of a recession-resistant business. Whether the economy is booming or struggling, a can of Coke is affordable for most people.

Cramer calls Coca-Cola a “textbook defensive stock.”

The company’s entrenched market position, massive scale, and portfolio of iconic brands — including names like Sprite, Fresca, Dasani and Smartwater — give it plenty of pricing power.

Add solid geographic diversification — its products are sold in more than 200 countries and territories around the globe — and it’s clear that Coca-Cola can thrive through thick and thin. After all, the company went public more than 100 years ago.

More impressively, Coca-Cola has increased its dividend for 60 consecutive years. The stock currently yields 2.8%.

Archer-Daniels-Midland (ADM)

Archer-Daniels-Midland isn’t exactly a household name. Cramer explains the business succinctly: “They sell seeds and also process all kinds of crops.”

In fact, he considers ADM “one of the top agricultural plays out there.”

Agriculture is naturally a highly resilient industry. Whether boom or bust, people still need to eat. This resilience is reflected in ADM’s share price performance. While the broad market is deep in the red year to date, ADM shares have surged more than 30%.