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The world is experiencing a wide range of macro-worries right now. This includes the ongoing war in Ukraine, and the potential for a global economic slowdown due to tariffs and the trade war.

As a result, there is an increased likelihood of a recession down the road. There are already multiple signs that the economy is slowing down.

Investors that want to prepare their portfolios for a recession might want to look for low beta stocks that have proven to be resilient versus economic downturns in the past.

These 3 dividend stocks have low betas, meaning they are likely to decline less than the broader market, in the event of a recession. They also have dividend yields above 3% which will act as a buffer against falling stock prices.

SJW Group (SJW)

SJW Group is a water utility company that produces, purchases, stores, purifies and distributes water to consumers and businesses in the Silicon Valley area of California, the area north of San Antonio, Texas, Connecticut, and Maine. SJW Group has a small real estate division that owns and develops properties for residential and warehouse customers in California and Tennessee. The company generates about $800 million in annual revenues.

On January 29th, 2025, SJW Group announced that it was raising its quarterly dividend 5.0% to $0.42, extending the company’s dividend growth streak to 57 consecutive years. SJW Group is a member of the Dividend Kings index.

On April 28th, 2025, SJW Group reported first quarter results for the period ending March 31st, 2025. For the quarter, revenue improved 18.2% to $176.6 million, which beat estimates by $16.1 million. Earnings-per-share of $0.50 compared favorably to earnings-per-share of $0.36 in the prior year and was $0.14 more than expected. For the quarter, higher water rates overall added $17.2 million to results and higher customer usage added $1.0 million.

Many investors own utility companies for their reliable earnings and dividends, especially for uncertain economic times. A key competitive advantage for SJW Group, aside from the concluded merger, is that it operates in two areas, Silicon Valley and Central Texas, that have seen high levels of population growth in recent years.

SJW stock currently yields 3.0%.

Campbell Soup (CPB)

Campbell Soup Company is a multinational food company headquartered in Camden, N.J. The company manufactures and markets branded convenience food products, such as soups, simple meals, beverages, snacks, and packaged fresh foods. The company’s portfolio focuses on two specific businesses: Campbell Snacks, and Campbell Meals and Beverages. Campbell generated annual sales of $9.6 billion in fiscal 2024.

Campbell Soup reported second quarter FY 2025 results on March 5th, 2025. Net sales for the quarter improved by 9% year-over-year to $2.7 billion. This increase was mostly a result of the Sovos Brands acquisition. Adjusted EPS was 8% lower year-over-year at $0.74 for the quarter, which beat expectations by two cents.

Future earnings growth will be driven primarily by acquisitions. For example, on March 12, 2024, Campbell closed on its acquisition of Sovos Brands (SOVO) for $23 per share in cash, which represented a total enterprise value of $2.7 billion, and was funded by issuing new debt.

Sovos is a leader in high-growth premium Italian sauces, and owns the market-leading Rao’s brand. Campbell had the goal of building a $1 billion sauce business, and it achieved that through this acquisition. Sovos was added to Campbell’s Meals & Beverages division.

EPS growth will also be aided by share buybacks. The company repurchased $56 million worth of shares in H1. There remains $301 million remaining under the current $500 million share repurchase program, which is in addition to the existing $205 million remaining on its anti-dilutive share repurchase program.

CPB stock currently yields 4.3%.

Kimberly-Clark (KMB)

The Kimberly-Clark Corporation is a global consumer products company that operates in 175 countries and sells disposable consumer goods, including paper towels, diapers, and tissues.

It operates through two segments that each house many popular brands: Personal Care Segment (Huggies, Pull-Ups, Kotex, Depend, Poise) and the Consumer Tissue segment (Kleenex, Scott, Cottonelle, and Viva), generating about $20 billion in annual revenue.

Kimberly-Clark has increased its dividend for 53 consecutive years, making it a member of the extremely prestigious Dividend Kings. Kimberly-Clark posted first quarter earnings on April 22nd, 2025. The company beat estimates on the bottom line, with adjusted earnings-per-share four cents ahead of estimates at $1.93. Revenue was off 6% year-over-year to $4.8 billion, missing estimates by $90 million.

Organic sales fell 1.6% during the quarter, which was nowhere close to estimates for +1.4%. The organic sales decline was driven by a 1.5% decline in pricing, while volume and mix were flat. Forex translation was a 2.4% drag on total sales, and another 2% drag was attributed to divestitures.

Kimberly-Clark’s competitive advantage is in its longstanding dominance with a variety of its brands, which are well known in the marketplace. It should also perform well during recessions as most of its products are consumable staples, which was evidenced during the COVID recession.

KMB stock currently yields 3.9%.

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