Pharmaceutical companies have a recession-proof business model. The simple reason behind this fact is that people do not choose when they get sick. So, for example, the pharmaceutical industry was largely unaffected by the devastating 2008 global recession. In fact, earnings per share among the industry's biggest names actually tracked higher, on balance, during that exceptionally bleak economic period.

The ability of pharmaceutical companies to shrug off economic downturns is one big reason investors often flock to them during bear markets. Not only do large-cap pharma companies offer shareholders a respite from marketwide volatility, but they also generally come with top-shelf dividend programs. Blue chip pharma stocks tend to be stellar passive income vehicles in any market environment.

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Source Fool.com