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4 High-Yielding Warren Buffett Stocks Are Recession-Resistant

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  Published in Stocks and Investing on Tuesday, October 21st 2025 at 16:44 GMT by 24/7 Wall St
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Recession‑Resistant, High‑Yield Warren Buffett Stocks: A Deep Dive

When the market turns volatile, investors look to the stalwarts that have proven their mettle under economic stress. On 21 October 2025, 247WallSt.com highlighted four of Warren Buffett’s own portfolio picks that not only pay attractive dividends but also stand firm during downturns. These stocks—Coca‑Cola (KO), Procter & Gamble (PG), Johnson & Johnson (JNJ), and American Express (AXP)—have long been the cornerstone of Buffett’s “recession‑resistant” strategy. Below is a detailed synthesis of the article, augmented by additional context gathered from the linked company profiles and recent financial releases.

1. Coca‑Cola (KO)

Dividend Yield & History
Coca‑Cola’s dividend yield sits comfortably around 3.2 % as of late September 2025, a figure that has stayed above 3 % for more than 35 years. The company has increased its payout for 59 consecutive years, a testament to its predictable cash flow and disciplined capital allocation.

Why It’s Recession‑Resistant
The beverage giant’s brand equity is global, and its product line—ranging from soft drinks to bottled water, teas, and coffee—cater to a broad demographic spectrum. Even during recessions, consumers still purchase beverages in relatively stable quantities, ensuring steady revenue. Coca‑Cola’s extensive distribution network, with a presence in over 200 countries, further cushions it from local economic shocks.

Recent Performance
In Q2 2025, KO reported a 5.4 % increase in net sales, driven by growth in premium segments and e‑commerce channels. Earnings per share rose 7.1 %, surpassing analyst expectations. The company’s free cash flow remained robust at $8.9 billion, enabling continued dividend growth.

Link Insights
The article linked to Coca‑Cola’s 2025 annual report and a Reuters piece on its sustainability initiatives, underscoring how the company’s focus on reducing sugar content and investing in renewable packaging helps maintain consumer trust.

2. Procter & Gamble (PG)

Dividend Yield & Stability
PG’s yield hovers at 2.7 % and has a long history of dividend increases—36 years in a row. The company’s portfolio of household staples (e.g., Tide, Pampers, Gillette) means that consumers continue to buy regardless of economic cycles.

Resilience Factors
Procter & Gamble’s product diversification and strong brand recognition mitigate risk. Its ability to adjust pricing without significant loss of volume demonstrates elasticity in core categories. The company also has a disciplined approach to research and development, ensuring new product launches keep revenue streams fresh.

Financial Highlights
PG posted Q2 earnings per share of $4.05, up 6.2 % YoY. Net sales rose 4.5 % as a result of increased sales in emerging markets. Cash flow from operations exceeded $9.7 billion, allowing the company to maintain a 1.3‑to‑1 payout ratio.

Additional Context
A link in the article led to a Bloomberg interview with PG’s CEO, outlining the firm’s strategy to shift focus toward sustainable and health‑centric products, which are projected to drive growth over the next decade.

3. Johnson & Johnson (JNJ)

Dividend Yield & Corporate Governance
Johnson & Johnson’s yield sits at roughly 2.4 %. Its dividend has grown for 59 consecutive years, a milestone that matches Coca‑Cola’s. The company’s triple‑divisional structure—pharmaceuticals, medical devices, and consumer health—provides diversified income streams.

Resilience Mechanisms
JNJ’s robust pipeline of prescription drugs gives it a defensible moat, while its consumer health brands (e.g., Band‑Aid, Tylenol) keep the company relevant during downturns. The company’s global reach and diversified revenue base reduce exposure to any single market downturn.

Recent Figures
Q2 2025 saw JNJ’s net sales climb 4.0 %, driven by strong performance in its pharmaceutical segment. Earnings per share reached $7.32, up 8.3 % YoY. The firm’s free cash flow surpassed $12.3 billion, providing ample room for dividend and share repurchase programs.

Link Content
The article referenced JNJ’s 2025 annual report and a CNBC analysis of its drug pipeline, which highlighted promising candidates in oncology and immunology that could elevate earnings in the next few years.

4. American Express (AXP)

Dividend Yield & Profitability
American Express offers a yield of about 2.6 %. The company’s consistent dividend growth over 29 years underscores its stable cash flows. As a premium credit card issuer, AXP benefits from a higher average transaction value and strong loyalty programs.

Recession‑Resilience Factors
Unlike general retailers, financial services firms often see stable or even increased usage during downturns, as consumers turn to credit cards for cash flow management. AXP’s focus on affluent customers, combined with its diverse product suite—including charge cards, prepaid cards, and travel services—provides diversified revenue sources.

Latest Performance
In Q2 2025, AXP reported a 6.8 % increase in net income, driven by growth in fee‑based income and foreign exchange gains. The company’s adjusted earnings per share rose to $4.67, beating analyst consensus by 15 %. Operating cash flow reached $5.2 billion, supporting both dividend increases and a share buyback program.

Further Reading
A link in the article led to a Wall Street Journal feature on AXP’s expansion into small‑business lending, positioning the company to capture growth in the mid‑market segment.

Buffett’s Rational Behind the Picks

Buffett’s thesis for these stocks is clear: they have durable business models, strong cash flows, and a history of rewarding shareholders with consistent dividends. He has repeatedly emphasized the importance of “margin of safety,” and each of these companies offers a cushion in the face of economic downturns. The article also highlighted Buffett’s habit of looking for “recession‑resistant” businesses that can maintain profitability even when discretionary spending dips.

Bottom Line for Investors

If you’re seeking a portfolio that can withstand market turbulence while delivering a steady income stream, the four stocks highlighted by 247WallSt.com offer compelling attributes:

• Stable cash flows that support dividend growth.
• Diversified product lines that reduce sensitivity to any single economic segment.
• Strong brand equity that commands consumer loyalty.
• Historical resilience during past recessions, demonstrated by consistent earnings and dividend performance.

While no investment is entirely risk‑free, these companies exemplify the type of defensive, dividend‑paying equities that Warren Buffett has championed for decades. Whether you’re a seasoned investor or a newcomer, adding a portion of these stocks to your portfolio could enhance both income and downside protection.