There are several dividend-yielding stocks that have, so far at least, been recession-proof. Our list includes big names like McDonalds (MCD) and Coca-Cola (KO), as well as two “sinful” consumer goods stocks (alcohol and tobacco) and a restaurant company. Let’s see what is helping these companies beat the economic downturn.

McDonald’s Corp’s current dividend rate is a mere 2.8%, but that is only part of the story: The international fast food chain has been increasing steadily in value, over the last week and over the last few years, in spite of the recession. To this point, MCD is generating double-digit returns so far this year. MCD has produced a capital gain of 48% with an 86% increase in dividend income since 2007. In fact, MCD’s annualized total return over the last decade is around 13.80%, so it’s no wonder Jim Cramer is a fan of MCD. It should also come to no surprise that its competitors are struggling to keep up; competing restaurant chain Wendy’s (WEN) has fallen 44.30% since the beginning of 2008, while MCD rose 45.50%. MCD’s biggest competitor is Yum Brands, Inc. (YUM), the owner of KFC, Pizza Hut and Taco Bell; it offers a similar dividend yield of 2.20%. MCD appears to be the favorite, though. Analysts consistently rate the stock as a buy, and I do too.

The Coca-Cola Company – Despite recessions, KO has been able to increase its dividends for the last 49 years; its growth rate is currently 10% per year and steady. To continue reading, click here.