The Motley Fool

5 ASX dividend stocks for a recession in 5 years

As global markets heat up, it’s a good idea to add defensive ASX dividend stocks to your portfolio. Interest rates around the world are plummeting to record lows and asset prices are very high right now.

5 defensive ASX dividend stocks to buy

As we head into next year, let’s take a look at 5 recession-proof ASX dividend stocks for your portfolio in 2020.

1. Origin Energy Ltd (ASX: ORG)

The Origin share price has climbed 26.11% higher since January in a strong 2019 performance.

Shareholders should be happy with the 3.14% dividend yield currently on offer with Origin shares as well. Despite trading near its 52-week high at $7.97 per share, I think Origin could be a good recession-proof ASX dividend stock.

People need energy, and with gas and electricity prices elevated, Origin could be in the buy zone next year.

2. Woolworths Group Ltd (ASX: WOW)

Woolworths shares are a staple of the average ASX dividend portfolio.

The Woolworths share price is up 30.12% for the year while still yielding a 2.69% ASX dividend per annum. Despite increasing international competition, I think Woolworths remains well-positioned in the Consumer Staples sector.

When times are tough, Woolworths should maintain sales and continue to deliver income to its investors.

3. Ramsay Health Care Ltd (ASX: RHC)

Healthcare is a notoriously defensive sector given people still need to look after themselves even in a downturn.

Ramsay remains a big player in the ASX Healthcare sector with a $13.96 billion market cap. Given Ramsay shares are yielding 2.19% at the moment, I think they could be a top recession-proof ASX dividend stock in 2020.

4. Charter Hall Long WALE REIT (ASX: CLW)

The Charter Hall Long WALE REIT can provide defensive income for your portfolio next year. The REIT invests mostly in commercial real estate with long-term, blue-chip tenants.

This holding could maintain your portfolio capital gains and while still receiving a 4.75% dividend yield.

5. St Barbara Ltd (ASX: SBM)

Gold has historically been a great counter-cyclical asset class to invest in.

While the St Barbara share price has fallen lower in 2019, it could still be a great hedge against an economic downturn. St Barbara shares are yielding a tidy 2.96% per annum and do look rather cheap at $2.66 per share.

If you’re looking for some upside potential and countercyclical exposure, this could be the ASX dividend stock for you.

For pure income, this high-yield, cyclical stock could be a roll of the dice before head into 2020 and beyond.

If you're after some more blue-chip exposure, take a look at these 3 winners below!

Our Top 3 Blue Chip Shares for 2019 – NOW AVAILABLE!

You’re invited! For a limited time, The Motley Fool Australia is giving away an urgent new investment report detailing our 3 TOP BLUE CHIP SHARES to own in 2019.

So if you like trustworthy, stable, high-performing companies that pay fat fully franked dividends – we’ve got you covered!

Stock #1 is a beloved old Australian company turning its attention to high-margin businesses... and rapidly returning cash to shareholders with its hefty dividend...

While Stock #2 is an online powerhouse that’s rapidly gaining market share all around the globe... poised for years (or even decades) of tremendous growth...

Even better, Stock #3 offers a whopping 6.5% grossed-up dividend! Which beats the rates on term deposits right out of the water – and offers the potential for capital gains, too.

You can discover all three shares inside our new report right now. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a LIMITED TIME ONLY!


Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.