Best Defensive Stocks
Defensive stocks are your portfolio's shock absorbers. When the market panics and growth stocks crater, KO, PG, WMT, and utility companies hold steady because demand for Coke, detergent, and electricity doesn't disappear in a recession. These are the stocks you're glad you own when everything else is down 30%.
Selection Criteria
- →Beta below 0.6 (historically outperforms in down markets)
- →Non-discretionary demand — products purchased regardless of economic conditions
- →Dividend yield providing income cushion during drawdowns
- →Low payout ratio ensuring dividend is maintained through recessions
The Stocks
No stock is fully recession-proof. Defensive stocks can still decline. This is not financial advice.
Recommended Resources
Tools & books I actually use and recommend
SeekingAlpha Premium
Quant ratings, earnings transcripts, and the stock analysis community where I published 300+ articles.
Try SeekingAlphaA Random Walk Down Wall Street
Burton Malkiel's classic case for index investing. The book that convinced millions to stop stock-picking.
View on AmazonThe Little Book of Common Sense Investing
John Bogle's manifesto on why low-cost index funds beat everything else. Straight from the founder of Vanguard.
View on AmazonSome links above are affiliate links. I only recommend products I personally use. See my full disclosures.