With the U.S. economy officially entering a recession in 2020 due to the coronavirus crisis, investors opposed to risk should consider becoming more defensive in their stock portfolios. One way to do this is to buy and hold high-quality dividend stocks.

Generally, these are companies with strong brands, profitable business models, and long-term growth potential.

Kimberly-Clark (KMB) is a Dividend Aristocrat that has increased its dividend for over 40 years in a row. The stock currently has a 3% dividend yield, which is particularly appealing in an environment of near-zero interest rates. Thanks to a portfolio full of strong brands and durable competitive advantages, Kimberly-Clark should continue increasing its dividend each year, even in a recession.

Recession-Resistant Business Model

Kimberly-Clark is a global consumer staples products manufacturer. The company generates over $18 billion in annual sales. Its core product areas include paper towels, diapers, and tissues. It has 5 individual brands that each generate over $1 billion in sales every year. Kimberly-Clark’s billion-dollar brands are Huggies, Kleenex, Kotex, Scott, and Cottonelle. The company also has a large segment that sells products to other businesses, in addition to its consumer sales.

The company has a long history of providing stable profits and dividends to shareholders. Kimberly-Clark has increased its dividend for 48 years in a row, and has paid a dividend to shareholders for 86 consecutive years. It has done this thanks to its strong brand portfolio and competitive advantages, which have led to steady growth over the years, regardless of the economic climate.

2020 is no different—at a time when so many companies across various industries are struggling to stay profitable, Kimberly-Clark is performing well. In the first quarter, total revenue increased 8% to $5 billion, due to 11% organic growth. Organic sales growth was due primarily to 8% volume growth, reflecting consumer stockpiling and pantry-loading behavior. Adjusted earnings-per-share increased 28% for the quarter, year over year. This is very impressive performance at a highly challenging time for the broader economy, and indicates Kimberly-Clark’s ability to navigate recessions.

Kimberly-Clark: Time Tested Dividend Stock

Shareholders can reasonably expect Kimberly-Clark to continue increasing its dividend for many years going forward. The company is not likely to suffer at all from the coronavirus crisis. Analysts currently expect the company to generate earnings-per-share of $7.61 for 2020. This would easily cover the current annualized dividend payout of $4.28 per share. With a projected dividend payout of 56%, Kimberly-Clark’s dividend is highly secure, even if earnings-per-share take a heavy hit, which seems unlikely as the company sells many products that people use every day.

Kimberly-Clark stock has a 3% current yield. It may not be the highest-yielding stock around, but what it offers in return is a high degree of dividend sustainability. The company has paid a dividend to shareholders for over 80 years, a period of time that has included multiple recessions.

Thanks to a recession-resistant business model, it has been able to increase its dividend each year throughout. Plus, Kimberly-Clark’s dividend yield beats the S&P 500 average yield (currently less than 2%) by a sizeable margin. Therefore, Kimberly-Clark is a quality dividend stock with an above-average yield and a high likelihood of raising its dividend each year, even in a recession.

Ben Reynolds is CEO of Sure Dividend. Sure Dividend helps individual investors build high quality dividend growth stock portfolios for the long run.