2 Recession-proof Us Stocks To Grow Your Wealth

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Introduction

The latest round of tariffs from the Trump administration has sent shockwaves through global markets, forcing companies and governments into reactive mode.

As the U.S. deepens its trade conflict with China, fears are rising that the world’s two largest economies could be headed for a full-blown trade war—with real consequences for businesses and consumers alike.

Rising tariffs mean rising costs. Supply chains are under pressure, consumer prices are expected to climb, and the global economy could be nudged closer to a recession if demand falters.

But even in turbulent times, opportunity exists.

Here are 2 recession-resilient U.S. stocks from the healthcare sectors that can help strengthen your portfolio and add stability in uncertain markets.

1. UnitedHealth Group

In times of market turbulence, resilient businesses with essential services stand out—and UnitedHealth Group is a prime example.

As one of the largest and most diversified healthcare companies in the U.S., UnitedHealth blends cutting-edge technology with data-driven insights to deliver high-quality, affordable healthcare to millions. Its dual-engine business model—UnitedHealthcare for insurance and Optum for healthcare services—provides robust revenue streams and stability even in volatile markets.

Despite economic headwinds and rising medical costs, UnitedHealth delivered strong results in 2024:

• Revenue surged 7.7% year-on-year to US$400.3 billion, reinforcing the company’s scale and relevance in the healthcare ecosystem.

• Net profit (excluding exceptional items) rose 1.5% to US$22.7 billion, demonstrating operational resilience.

• Free cash flow came in at US$20.7 billion, giving the company ample financial flexibility for dividends, reinvestment, and strategic growth.

• While operating profit dipped slightly by 0.2% (to US$32.3 billion) due to higher medical costs, UnitedHealth’s margins remain enviable across the sector.

Shareholders were rewarded with a growing stream of income. The company raised its quarterly dividend by 11.7% to US$2.10, up from US$1.88 a year ago—marking its commitment to returning value to investors.

Looking ahead, UnitedHealth has issued a bullish revenue forecast for 2025, expecting between US$450 billion and US$455 billion, which translates to around 13% growth at the midpoint. This signals confidence in its continued expansion across insurance, digital health, and care delivery.

2. Kenvue

Kenvue is another consumer Health Powerhouse built for stability and growth. In a world of economic swings and shifting consumer behaviour, Kenvue stands out as a reliable anchor in any portfolio. As the largest pure-play consumer health company by revenue, Kenvue commands a global presence through an unmatched portfolio of trusted, household-name brands—Listerine, Neutrogena, BAND-AID, Tylenol, and more.

These brands aren’t just familiar—they’re essential. And in uncertain markets, essential wins.

2024 Performance: Quietly Strong and Financially Sound

Despite macroeconomic headwinds, Kenvue delivered a stable and respectable performance in 2024:

• Revenue edged up to US$15.5 billion, maintaining its leadership position in the consumer health space.

• Operating profit (adjusted) increased 3.7% year-on-year to US$2.6 billion, reflecting better cost efficiencies and pricing discipline.

• Net profit (excluding one-offs) rose 7.8% to US$1.8 billion, highlighting operational resilience and brand stickiness.

• The company generated a healthy free cash flow of US$1.3 billion, supporting reinvestment and consistent shareholder returns.

• Investors were rewarded with a quarterly dividend of US$0.205 per share, reinforcing its status as a solid dividend payer.

2025 Outlook: Leaner, Smarter, and Focused on Innovation

Kenvue is charting a clear path for sustainable growth in 2025:

• The company projects organic sales growth between 2% and 4%, powered by a more agile operating model and strategic brand investments.

• Management is doubling down on product innovation, with plans to launch new offerings tailored to evolving consumer needs.

• Strengthened retail partnerships will enhance shelf visibility and consumer reach—key levers in a competitive market.

Why Kenvue Deserves a Spot in Your Portfolio

• Defensive moat: Consumers don’t stop buying Tylenol or BAND-AIDs during recessions.

• Brand durability: With products used daily in millions of households, Kenvue’s portfolio commands loyalty and pricing power.

• Attractive income: The steady dividend adds income reliability for long-term investors.

• Growth from innovation: New product launches and operational efficiency improvements provide upside without sacrificing stability.

The Bottom Line

In an environment of rising costs and economic uncertainty, UnitedHealth offers stability, scale, and steady growth. With demographic tailwinds like an ageing population and increased demand for healthcare services, it remains a core defensive play in any well-rounded portfolio.

Kenvue is more than just a consumer healthcare company—it’s a reliable cash-generating business with iconic brands, smart leadership, and a growth mindset. In volatile markets, it’s a defensive gem with upside potential.

Happy Investing!!