3 Crash-Proof Stocks Offering Growth and Income

Stocks to buy

Let’s just get this straight – there’s no such thing as a crash-proof stock. Indeed, certain companies have shown a historical tendency to be crash-resistant. Among such stocks that have weathered market uncertainty in the past, blue-chip stocks tend to outperform. I think the same principles will apply during the next crash.

Now, whether or not a market crash or downturn is imminent or not is up for debate. The so-called “soft landing” narrative continues. But it’s the same story the Federal Reserve and others in the financial media told during extreme yield curve inversions in the past. When the yield curve un-inverts is the time to get cautious. But for now, it does appear we’re in a Goldilocks period, to some degree.

Investors looking to add stability to their portfolios need look no further than these three stocks..

Pepsi (PEP)

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PepsiCo (NYSE:PEP), renowned for its beverages and snacks, offers stability in challenging times with a diversified product range. It’s a Dividend King, yielding 2.8% and maintaining strong market positions, distribution, and innovation.

PepsiCo, known for products like Lay’s Potato Chips and Gatorade, enjoys stable earnings growth and price resilience, making it a reliable choice amid market fluctuations. The stock has gained 75% since the 2020 pandemic crash.

As economic uncertainty rises, more consumers opt for cost-effective choices like Pepsi over pricier alternatives. While PEP stock hasn’t been the most exciting, its strong financials and adaptability make it a resilient option.

Berkshire Hathaway (BRK-B)

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Berkshire Hathaway (NYSE:BRK-B) is thriving, with its shares near an all-time high and a track record of outperformance compared to the S&P 500 over the past 5 and 10 years.

The stock’s strength is attributed to robust financial results and a substantial cash reserve of almost $150 billion. Coupled with its diverse holdings across various sectors, it stands well-prepared for economic downturns or market volatility.

The 93-year-old Warren Buffett leads Berkshire Hathaway to an all-time high with a diverse business portfolio, stable Q2 earnings, and strategic investments in home builders, capitalizing on the housing market. His track record justifies the stock’s premium. Buffett’s continued success and his team’s strategic prowess bode well for the long-term future.

McDonald’s (MCD)

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McDonald’s (NYSE:MCD) is a global fast-food giant known for its convenience, branding power, and value.

With a massive presence and iconic logo, it remains a top choice for price-sensitive consumers. It also offers accessibility through drive-thrus and delivery, and budget-friendly options.

McDonald’s strong brand, affordability, and worldwide menu variety drive customer loyalty and moderate growth. Expecting 1,900 new locations in 2023. EPS grew from $6.43 to $8.39 over 5 years (5% annually).

MCD stock has held steady between $275 and $288 in recent weeks, currently at $281. While not a bargain, its potential for further growth remains strong. With revenue gains from menu updates and improved services, McDonald’s is experiencing a robust growth phase. Additionally, its dividend yield makes it an attractive choice.

On the date of publication, Chris MacDonald has a LONG position in BRK-B, MCD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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