20 dividend stocks that may be safest if the Federal Reserve causes a recession

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20 dividend stocks that may be safest if the Federal Reserve causes a recession
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Worried the Fed will cause a recession? These 20 dividend stocks have your back.

Investors cheered when a report last week showed the economy expanded in the third quarter after back-to-back contractions.

In a year when the S&P 500 SPX, -0.42% is down 18%, the three ETFs have widely outperformed, with the best of the group falling only 1%.That said, last week was a very good one for U.S. stocks, with the S&P 500 returning 4% and the Dow Jones Industrial Average DJIA, -0.38% having its best October ever.

The weighted rolling consensus 12-month earning estimate for the S&P 500, based on estimates of analysts polled by FactSet, has declined 2% over the past month to $230.60. In a healthy economy, investors expect this number to rise every quarter, at least slightly. The Schwab U.S. Dividend Equity ETF ranks highest for five-year total return with dividends reinvested — it is the only one of the three to beat the index for this period.

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