The Rise of Defensive Stocks Amid Risk-Off Sentiment
Historically, when investors move away from riskier assets, the defensive stocks sector—which includes companies in industries less affected by economic fluctuations—tends to outperform.
These sectors, such as healthcare, consumer staples, and utilities, offer stability through consistent revenues and reliable dividend payouts. But which defensive stocks stand out for their robust fundamentals and positive growth potential?
On the equities front, here are five standout defensive stocks offering stability and growth.
Johnson & Johnson (JNJ)
[Johnson & Johnson] is a leader in the healthcare sector, boasting a market cap of approximately $459 billion. With a price-to-earnings (P/E) ratio of 10.23, the stock appears undervalued. Over the past five years, its earnings per share (EPS) have grown at a compound annual growth rate (CAGR) of 5%.
Its dividend yield of 3.02% is underpinned by an impressive 60-year history of consecutive dividend increases, with a dividend growth rate of 6% over the last five years. Johnson & Johnson remains a pillar of stability for long-term investors.
Philip Morris International (PM)
A leader in the tobacco industry, Philip Morris International has a market cap of roughly $180 billion and a P/E ratio of 17.5, reflecting a reasonable valuation. The company has achieved a 3% average annual EPS growth over the past five years, driven by its solid foothold in a stable sector.
With a dividend yield of 4.61%, Philip Morris appeals to income-focused investors. The company has increased its dividends for 17 straight years, maintaining a dividend growth rate of 2.8%. Its pivot toward smoke-free products signals long-term growth potential.
The Coca-Cola Company (KO)
[Coca-Cola] is a globally recognized leader in the beverage industry, with a market cap of $265 billion. Its P/E ratio of 23.5 aligns with industry norms. Over the past five years, Coca-Cola has delivered steady EPS growth of 4%.
The company’s dividend yield of 3% is supported by a remarkable track record of 61 consecutive years of dividend increases, with a dividend growth rate of 4%. Coca-Cola continues to offer reliability in uncertain times.
PepsiCo (PEP)
[PepsiCo] is another global leader, operating across the beverage and snack industries. With a market cap of $200 billion, its P/E ratio of 24.2 mirrors that of its key competitor, Coca-Cola. PepsiCo’s fiscal 2023 EPS of $6.02, though slightly below the prior year’s $6.45, demonstrates resilience amid challenging market conditions.
PepsiCo offers a dividend yield of 2.8%, with 51 consecutive years of dividend growth at a rate of 7% over the past five years. It remains a staple for investors seeking steady returns.
Procter & Gamble (PG)
[Procter & Gamble] is a titan in the consumer goods sector, with a market cap of approximately $375 billion. Its P/E ratio of 25.1 suggests a premium valuation, justified by its robust performance. Fiscal 2023 EPS reached $6.33, up from $5.86 the previous year.
Offering a dividend yield of 2.5%, Procter & Gamble has an extraordinary track record of 67 consecutive years of dividend growth, with a 5% growth rate over the past five years. It remains a cornerstone for conservative investors.
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The information provided in this article is for informational purposes only and should not be the sole basis for investment decisions. Investors retain full responsibility for their choices, considering their unique risk tolerance and investment time horizon. This article does not constitute an offer or solicitation to invest.|
Original article published on Money.it Italy 2025-01-15 14:58:58. Original title: I 5 migliori titoli difensivi per proteggersi dall’incertezza del mercato
