by Kodjo Adadevoh

Created on: December 07, 2008   Last Updated: December 08, 2009

Companies that do well during recessions tend to be in industries that provide goods and services that are indispensible to the consumer. Also, companies that have pricing power and can lower prices and increase sales tend to do very well. Companies that survive recessions typically have products that are priced appropriately and goods that appeal to a large cross-section of the population. Companies in this category include Coca Cola [KO], McDonald [MCD], Procter and Gamble [PG], Wal-Mart [WMT] and Johnson & Johnson [JNJ].

Coca Cola is a company with a very rich history and a significant share of the beverage market; Coca Cola is sold all over the world and is now an essential beverage in many parts of the world. Coca Cola is not only expanding into new markets all over the world, they are also embracing new technologies in order to make their operations more efficient. Coca Cola manufactures other beverages besides its flagship product Coke; it has its own energy drinks, water, tea, sports drinks and juices. Coca Cola's stock offers safety, a potential for capital appreciation and income from the stock dividend which currently yields about 2.9%.

McDonald is in over 50 countries worldwide. McDonald continues to reduce both it prices and costs, and as a result offers significant value to many families. McDonalds continues to evolve with changing demands and preferences in the marketplace. To cater to the increase clamor amongst consumer for healthier foods, McDonalds has improved its menu to include healthier meals for its customers. McDonald's dollar meal has helped to feed a lot of people who would otherwise have to go without food. McDonald's stock not only provides an opportunity for capital appreciation even in a recession, but also an opportunity for income from the stock dividend which is currently yielding about 3.6%.

Procter and Gamble is a behemoth in the personal care product market. Procter and Gamble's products span a huge spectrum of the personal consumer market, their products include: baby, hair care, pet nutrition, prescription drugs, health care, fragrances, body wash and soap, shaving utensils, laundry and fabric care, oral care, skin care, cosmetics, household cleaners and paper products to mention a few. Consumers are cutting back on all discretionary spending and Procter and Gamble is not immune from the downturn; however, the long term potential for [PG] remains very good. Investors should be accumulating this stock on pull

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