Buffett-style dividend stocks 3 as candidates to buy during a market downturn

Johnson & Johnson, McDonald’s and Procter & Gamble were presented as dividend stock candidates suited to Warren Buffett’s investment approach. The three companies were mentioned as potential buys if their share prices fell during a major market downturn. This does not mean Buffett has disclosed any actual plans to buy them.

Johnson & Johnson is a healthcare company. It operates pharmaceutical and medical device businesses. Even when economic conditions worsen, hospital care and health-related demand are considered areas where demand does not easily disappear.

McDonald’s is a global restaurant chain. It operates the same store format and brand in multiple countries. Even when consumers cut back on expensive dining, there may be a trend toward seeking meals at relatively lower prices.

Procter & Gamble is a consumer goods company. It sells everyday products such as detergent, shampoo, and diapers. These are items households buy repeatedly regardless of economic conditions.

The three companies were described as having long records of dividend growth. Dividend growth refers to a company’s record of steadily increasing the cash payments it makes to shareholders. When share prices fall during a market downturn, dividend yields may rise.

The article explained that the three stocks could become more attractive buying opportunities during a market downturn. The reasons are that their businesses are relatively resilient to an economic slowdown and that they have long dividend records. It concluded that this aligns with Buffett’s principle of being greedy when others are fearful.