Fear a Recession in 2023? Here Are 3 Stocks to Safeguard Your Portfolio

Recent indicators suggest a recession could be just around the corner. A potential downturn could have a big impact on earnings for economically sensitive companies, which would likely put more weight on their stock prices. 

However, some companies are relatively recession-proof. They benefit from stable demand and pricing, which enables them to deliver steadily rising earnings and dividends. Three companies with relatively recession-resistant businesses are Kinder Morgan (NYSE: KMI), American Water Works (NYSE: AWK), and NextEra Energy (NYSE: NEE). These companies can help safeguard your portfolio from a potential economic storm this year. 

Reuben Gregg Brewer (Kinder Morgan): Recessions can be tough on energy stocks because they tend to reduce demand for oil and natural gas. That normally leads to lower prices for these commodities and, thus, lower earnings for energy producers.

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Source Fool.com