Investors may want to break these “dividend elites,” which have historically outperformed in declines, given the threat of a recession next year, according to Wolfe Research. Dividend Elite has a long track record of increasing dividends. What’s more, according to Wolfe Research, these stocks typically outperform the broader market going in and out of recessions. When the economy is in a late recession, as it is now, dividend elites typically return 8.9% relative to the S&P 500. During layoff periods, this outperformance jumps to 19.2%. For investors, this is an important consideration as they wrap up 2022, and prepare for further volatility down the road. The S&P 500 is on pace to close out one of its worst years on record, with the index down 15.5% this year, and all but one of its 11 sectors trading in negative territory. Wolfe Research examines companies that have consistently increased their dividends over the past 25 years, with market capitalizations of more than $3 billion. These are the 10 names. McDonald’s has outperformed this year and has a 2.2% dividend yield, according to Wolfe Research. The fast-food company was named a top pick heading into 2023 by Gordon Haskett. In a November note, analyst Jeff Farmer said McDonald’s is a global market share winner with cash flow stability and a safe haven for consumer discretionary investors ahead of a potential recession next year. Farmer’s $300 price target represents approximately 10% upside. Home Depot has dropped 22% this year, but the Consumer Discretionary stock has a 2.3% dividend yield. Cowen recently initiated coverage on the stock with an Outperform rating, saying the company is a “best-in-class operator” that could expand the stock. “As HD’s pro ecosystem comes together, we are creative on the opportunity to grow share, increase sales productivity, accelerate flywheel and expand EBIT margin,” wrote Max Rakhlenko in an October note. “HD is a best-in-class operator with leading pro share, positioning the retailer to better counter the slow background in the NT and accelerate on the other side.” Albemarle has a total year return of 22%, and a modest 0.6% dividend yield. The lithium maker was named a top three pick by Citi analysts, who said in a September note that Albemarle was “better positioned” to benefit from higher lithium prices after restructuring its contracts for more variable pricing. Is. It has a large global footprint in Chile, Australia and China. Other stocks included in this list are 3M and Caterpillar.