by Anthony Blake

Created on: December 09, 2008   Last Updated: December 15, 2008

Perhaps some doubters still remain as to the current economic recession that our country and the majority of the globe is currently suffering through, but the fact is that the market as a whole has lost nearly forty percent of its value from the highs of fourteen thousand in October 2007 to the depths of this past November stuggling to keep our collective heads above eight thousand.

Of course diversification is as always a necessary tool in staving of the most drastic of collapses during a recession, but dividends and non-discretionary items are a stellar one-two combo as well. (PG) Proctor & Gamble is the prototypical recession proof stock as a consumer staple, or something that consumers will purchase regardless of financial situation.

Another item that goes hand in hand with the most basic human need of consumption is any food related company. (HNZ) Heinz is one of the biggest American brands that is known for ketchup but has certainly branched off with its infant food and numerous other condiments. With a diverse variant of distribution ties across the globe, Heinz maintains a hold on the food industry worldwide. Despite the shrinking wallets of everyday America, people will continue to take care of themselves and (CL) Colgate Palmolive is another consumer staple that will thrive in such a desolate environment.

Even in the most dire of times the basic needs of survival will step to the forefront and pull a portion of consumer capital. (KMB) Kimberly Clark Corp. is a unique play on the ongoing healthcare craze and despite the economic downturn, unfortunately people will continue to spend time in the hospital and life will continue to hand out its fair share of bumps and bruises along the way. (KMB) is the staple brand name found in healthcare facilities worldwide and will be unimpeded by a downturn in the economy as their business will be virtually unaffected by consumer taste.

(EXC) Excelon has a business model that depends very little on the economy and is mostly dependent upon the basic needs of humanity as a provider of electricity. Utilities are notoriously a recession proof hiding spot for capital and also feature an extremely reliable dividend payout.

Of course there is the skeptic in all of us even the eternal optimists that warn even the most iron clad looking stock is dangerous when the fight-or-flight instincts of human nature kick in and sell orders rain in like confetti to numerous hedge funds. As has been demonstrated by the unabashed selling of the past few months, even the best blue chip names are sold off by funds needing to meet redemption obligations especially when the calendar turns and a fiscal quarter or year comes to a close.

Dividends are a safe and reliable form of investment to assure the safety of your money if the business has a substantial amount of cash on hand to assure that the payment of the dividend at its current rate can continue to be made. Many beaten up sector leaders have been taken down to levels that make their dividends incredibly attractive even in these difficult times. With a little homework and rational patience, long-term investors will reap the rewards in even the most barron of times.

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