Investors have so far sailed in turbulent markets in 2025. On April 2, President Donald Trump announced Reciprocal prices on 180 countries Around the world, sending shock waves on the market. The fall has further extended the decline of S&P 500This is down 15% since its top of all time on February 19.
Recession fears return and recent market volatility has led certain investors to rethink their investments. In this difficult environment, dividends actions deserve to be considered. However, not all dividend actions are created equal. Some companies have a robust Competitive advantages This allows them to prosper through economic cycles.
Here are two high -quality companies that have always increased their dividend payments in the last six recessions and obtained stellar yields for investors along the way.
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When seeing stability, no industry may be better than insurance. Space companies benefit from a constant demand between commercial cycles. They can also increase rates and adapt to inflationary pressures in the economy. Finally, certain companies have an excellent subscription thanks to a long history of expertise, resulting in a long history of increasing dividend and appreciation of the share of action.
Rli (Nyse: rli) is an excellent example of how investment in a stable and stable company rewards long -term investors. The specialized insurance company operates on niche markets, mainly focusing on the excess and surplus insurance markets (E&S).
The largest RLI offers are in commercial excess and personal umbrella space. Its commercial excess policies are ideal for companies that need higher limits of responsibility than their primary policies and can cover risks such as material damage, bodily injuries and legal expenses.
The personal umbrella company offers owners’ liability and automobiles superior to what traditional policies offer. This helps protect customers from significant losses and is generally used by high -birth content as an additional protective layer.
As a specialized anterior, RLI can be more selective on the risks he chooses to cover and how much he invoices. Its policies are tailor -made for companies or individuals and are not subject to strict regulatory requirements that traditional insurers and victims insurers face. Consequently, companies are rewarded for their expertise and experience to cover difficult risks to place and can take advantage of higher beneficiary margins in the process.
RLI displayed an excellent subscription capacity and a commercial model. The company has increased its dividends payment for more than 50 consecutive years. During the same period, he provided total yields (including reinvested dividends) of 16.8% per year, crushing the wider market along the way.
S&P Global(NYSE: SPGI) plays an essential role in credit markets, assessing the solvency of entities and awarding them credit ratings. These ratings are significant risk indicators influencing loan costs and investment decisions. For example, they are used to determine whether the obligations of a company are quality or unwanted quality obligations.
What makes S&P global a solid company is its industry. It is not easy to enter credit ratings. High regulatory charges and decades of confidence built with investors make it difficult for new entrants to gain a foothold in industry. Consequently, S&P Global dominates the market with a market share of 50%. Moody’s is the second largest player, with a market share of 32%.
S&P Global benefits from the continuous debt emission. Countries are constantly increasing debts to finance their expenses and businesses increase debts to finance their businesses, make acquisitions or other purposes. As the economy develops, the global advantages of S&P, as we generally see a higher debt emission activity.
That said, the main revenues of S&P global are vulnerable to withdrawals from the loan activity. For example, in 2022, higher interest rates maintained many companies on the sidelines and the emission activity fell. S&P Global balances part of this cyclical risk with its data analysis segment.
Thanks to this, S&P Global provides data and analyzes to finance professionals, market data for financial institutions and software solutions for customers to manage and analyze data. Many of them are contractual agreements with subscription income, ensuring stability between economic cycles.
The company posted a solid operating model that has resisted ups and downs. This is why he increased his payment by 53 consecutive years. The dividend is modest, at 0.8%. However, when you take into account its dividend as well as the assessment of the equity course, S&P Global provided investors with a stellar of 14% per year, making it another excellent choice for investors looking for cash flow and stability in this turbulent market.
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Courtney Carlsen Has no position in the actions mentioned. The Motley Fool has positions and recommends Moody’s and S&P Global. The Word’s madman has a Disclosure policy.
