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5 Necessity Stocks That Could Protect Your Portfolio From Disaster
0.97%January 08 | MyPlanIQ portfolio symbol P_36262

  • Portfolio Overview
  • Asset Allocation and ETFs
  • Performance
  • Calculators
  • Rolling Returns
  • Drawdowns

Portfolio Overview


The new normal of low interest rates and likely turbulence has me looking for ideas in the area of solid companies with dividends. Sean Williams of the Motley Fool picks five stocks in markets that are likely to be least impacted by the ups and downs of the market and that has me interested.

He sought to uncover five stocks that would stand the test of time whether the global economy was booming or in a deep recession -- and today I'll share them with you.

These five stocks all provide necessity goods to consumers. Arguably a few of you will find his definition of "necessity" a stretch, but given the impeccable track records of these five companies, he believes they make good investments.

In no particular order:

Company

Necessity

Dividend Yield
Duke Energy  (DUK)
 		Electricity 4.70%
American Water Works (AWK)
 		Water 2.90%
Chevron  (CVX)
 		Oil 3.10%
Coca-Cola (KO)
 		Food 2.80%
Wal-Mart Stores (WMT)
 		Clothing 2.50

Source: Yahoo! Finance

This ticks a number of boxes for me:

  • Large companies
  • Good dividend performance
  • In stable markets that have continuing demand in any market
  • Diversified choice

In his article, Sean goes into more detail of why he chooses the particular companies but, for this exercise, I am going to take them and measure then against our benchmark ETF portfolio.

Click here for more portfolio details and features ►

Asset Allocation


Symbol Category/Sector Target Weight
DUK
Duke Energy Corporation 		EQUITY 20%
AWK
American Water Works Company, Inc. 		EQUITY 20%
CVX
Chevron Corporation 		EQUITY 20%
KO
The Coca-Cola Company 		EQUITY 20%
WMT
Walmart Inc. 		EQUITY 20%


Historical Performance


5 Necessity Stocks That Could Protect Your Portfolio From Disaster Historical Returns

Name YTD Return 1Yr AR 3Yr AR 5Yr AR 10Yr AR 15Yr AR 20Yr AR Inception
5 Necessity Stocks That Could Protect Your Portfolio From Disaster -0.07% -6.44% -3.54% 3.21% 5.84% 8.83% NA 8.26%
VFINX (VANGUARD 500 INDEX FUND INVESTOR SHARES) 0.64% 25.78% 9.74% 14.44% 13.04% 13.59% 10.37% 11.68%
VSMGX (VANGUARD LIFESTRATEGY MODERATE GROWTH FUND INVESTOR SHARES) 0.16% 11.15% 2.90% 5.94% 6.05% 6.80% 5.91% 5.88%
Data as of 01/08/2025, AR inception is 04/23/2008

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5 Necessity Stocks That Could Protect Your Portfolio From Disaster Historical Return Chart


Calculators


Dollar Cost Average Calculator for 5 Necessity Stocks That Could Protect Your Portfolio From Disaster

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Retirement Spending Calculator for 5 Necessity Stocks That Could Protect Your Portfolio From Disaster

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Rolling Returns


From 04/23/2008 to 01/08/2025, the worst annualized return of 3-year rolling returns for 5 Necessity Stocks That Could Protect Your Portfolio From Disaster is -5.05%.
From 04/23/2008 to 01/08/2025, the worst annualized return of 5-year rolling returns for 5 Necessity Stocks That Could Protect Your Portfolio From Disaster is 2.84%.
From 04/23/2008 to 01/08/2025, the worst annualized return of 10-year rolling returns for 5 Necessity Stocks That Could Protect Your Portfolio From Disaster is 6.05%.

Maximum Drawdown

5 Necessity Stocks That Could Protect Your Portfolio From Disaster Maximum Drawdown