2 Recession-Proof Stocks to Watch in December

By Stefon Walters – Dec 16, 2025 at 8:05AM ESTKey PointsWalmart's low prices make it a go-to during recessions when people are cutting back on spending.Johnson & Johnson sells consumer health products that many people don't cut back on when adjusting their budgets.Walmart and Johnson & Johnson are Dividend Kings.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: WMTWalmartMarket Cap$931BToday's Changeangle-down(-0.71%) $0.83Current Price$115.96Price as of December 16, 2025 at 9:40 AM ETThese companies have stood the test of time and survived many previous recessions.One thing you eventually learn about the U.S. economy is that it can be fairly unpredictable. Granted, there are many smart economists and financial professionals who are good at predicting where the economy is going, but nobody is ever completely sure of exactly what the future holds. That's why, as an investor, it's always better to be overprepared than underprepared. The U.S. economy doesn't seem to be heading into a recession in the coming months, but if it does start venturing that way in 2026, it would be wise to have some stocks that are essentially "recession-proof." That doesn't mean those stocks won't experience down periods, but it does mean they'll be well equipped to weather the storm. Image source: Getty Images. 1. Walmart Walmart (WMT 0.71%) has always positioned itself as the value retailer, going so far as to make its slogan "Every Day Low Prices." When recessions hit, money gets tight, and consumers begin looking for bargains and value wherever they can find them. That's where Walmart comes into the picture. People tend to shy away from retailers like Target and Whole Foods, which are known for more "premium" brands and prices, and head to Walmart, where they can find virtually everything they need at generally lower prices. ExpandNASDAQ: WMTWalmartToday's Change(-0.71%) $-0.83Current Price$115.96Key Data PointsMarket Cap$931BDay's Range$115.89 - $116.8652wk Range$79.81 - $117.45Volume34KAvg Vol18MGross Margin23.90%Dividend Yield0.80% Walmart is a one-stop shop. It sells groceries, toiletries, cleaning products, clothing, and other items people use in their daily lives. And with thousands of stores across the country, most consumers can reach a Walmart store within a relatively short time.Advertisement During the Great Recession at the brink of the financial crisis from December 2007 to June 2009, the S&P 500 declined by around 38%, while Walmart's stock actually rose nearly 4%. WMT data by YCharts Past performance doesn't guarantee future results, but this is a good example of how resilient the stock can be when times get rough in the economy and stock market. But even without stock price growth, Walmart has a reliable dividend that can help cushion the blow. With 52 consecutive years of dividend increases, Walmart is a Dividend King (a company with at least 50 consecutive years of increases). That means it has managed to keep increasing its dividend through numerous recessions without missing a beat. That's a company you want in your portfolio when times get rough. 2. Johnson & Johnson When money is tight, it's fairly easy to cut back on eating out, buying new clothes, and upgrading to the latest smartphone. It's much harder -- and typically not advised -- to cut back on products regarding your health. That's why Johnson & Johnson (JNJ 0.33%) makes for a great buy during recessions. ExpandNYSE: JNJJohnson & JohnsonToday's Change(-0.33%) $-0.70Current Price$213.47Key Data PointsMarket Cap$516BDay's Range$213.35 - $214.6652wk Range$140.68 - $215.19Volume13KAvg Vol8.9MGross Margin68.27%Dividend Yield2.40% Johnson & Johnson has its hands in many different facets of the healthcare world, outside of consumer products, which was spun off in August 2023. It develops and sells pharmaceuticals and medical devices that deal with oncology, immunology, neuroscience, vision, surgical tools, surgical technologies, infectious diseases, and more. Healthcare is generally non-cyclical, meaning business and demand don't move in line with the economy. Yes, consumers and businesses may move to more generic brands. However, people don't stop getting sick or needing essential medical care, which Johnson & Johnson provides, ensuring a steady source of income. Johnson & Johnson's stock has lagged behind the S&P 500 over the past decade, but its business performance has remained steady during turbulent times. During the Great Recession, its net income fluctuated a bit, but it ended the recession period up over 47% from December 2007 to June 2009. JNJ Net Income (Quarterly) data by YCharts Like Walmart, Johnson & Johnson is also a Dividend King, with 63 consecutive years of dividend increases. This means its increases have endured the 1970s stagflation, the 1980s double-dip recession, the Great Recession, the COVID-19 pandemic, and other rough patches in the economy. It's a business that has stood the test of time.About the AuthorStefon Walters is a contributing Motley Fool stock market analyst covering publicly traded companies across technology, consumer goods, and financials, as well as retirement planning. Stefon is a published author and has more than a decade of experience teaching financial literacy. He holds a bachelor’s degree in economics from the University of North Carolina at Chapel Hill.TMFStefonWRead NextDec 14, 2025 •By Stefon WaltersHere's How Many Shares of Walmart You'd Need for $500 in Yearly DividendsDec 12, 2025 •By Matthew BenjaminWhy You Can No Longer Find Walmart on the NYSEDec 11, 2025 •By Marc Guberti1 Retail Stock Set to Soar This Holiday Season and BeyondDec 9, 2025 •By Marc Guberti2 Catalysts That Can Drive Walmart Stock Higher in 2026Dec 8, 2025 •By Reuben Gregg BrewerBest Stock to Buy Right Now: Walmart vs. TargetDec 6, 2025 •By Stefon WaltersWhere Will Walmart Stock Be in 5 Years?