What are defensive stocks: definition, advantages and stocks to watch

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What are defensive stocks: definition, advantages and stocks to watch

cityindex2021-07-20

Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....

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Alykrunch
·2021-07-21
Good article, but i do not fully subscribe to the recommended stocks. (Still buyers beware)
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Pluto891
·2021-07-20
good read
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RonnieO
·2021-07-20
Good
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- Bull1973:
  Ok
  2021-07-20
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Alihuat
·2021-07-20
Now i know.. i alwaus hear growth stocks only..
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JJQ
·2021-07-20
Please Like and comment! Thank you
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- JJQ:
  ??
  2021-07-20
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- JJQ:
  Thank you!
  2021-07-20
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- Mystique:
  ok
  2021-07-20
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andrew123
·2021-07-20
Agree. In time of FUD defensive sector better protection. Like n comment
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- Platypat:
  Dont want to buy guns
  2021-07-20
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elvinfu
·2021-07-20
Nice
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Jayk7
·2021-07-20
Nice
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Ericlam
·2021-07-20
good sharing
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- Ericlam:
  nice
  2021-07-20
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- Angsana:
  hi
  2021-07-20
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Lkc
·2021-07-20
Cool
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4
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- Ericlam:
  nice
  2021-07-20
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- Mr. T:
  Beans
  2021-07-20
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IronRoar
·2021-07-20
very good
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Kenjing
·2021-07-20
Nice
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- 月亮湾湾照狮城:
  [微笑] [微笑]
  2021-07-20
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LionKingAir
·2021-07-20
Thanks
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- Kenjing:
  NiCe
  2021-07-20
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vhardono
·2021-07-20
please comment n like
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- BOTANIKA:
  ok
  2021-07-20
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- LionKingAir:
  Good
  2021-07-20
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littlekitten
·2021-07-20
Cool!
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- Mammoth:
  [微笑] [微笑]
  2021-07-20
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Kevin92
·2021-07-20
Like and comment
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- Tomxx:
  Ok
  2021-07-20
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Kevin92
·2021-07-20
Like and comment
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- andrew123:
  like yrs u like mine.ok
  2021-07-20
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- Ericlam:
  nice
  2021-07-20
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ChrisCen
·2021-07-20
Liked n comment
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- Kevin92:
  Like and comment
  2021-07-20
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MesutOzil
·2021-07-20
Thanks for the info
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- ramius75:
  Indeed
  2021-07-20
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- Acestars:
  yea
  2021-07-20
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Huatkor
·2021-07-20
Good to know.
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- williamtay:
  comment
  2021-07-20
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Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"KO","symbol_name":"可口可乐","start_time":0,"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","article_id":"1154177675","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","pubTimestamp":1626710671,"sourceInfo":{"source_id":"lsy1624549625256","name":"cityindex"},"weMediaInfo":null,"summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","collect":0,"end_time":0,"defaultTopTitle":"cityindex.co.uk","property":[],"viewcount":null,"language":"en","relate_stocks":{"KO":"可口可乐","LMT":"洛克希德马丁","MCD":"麦当劳","FDX":"联邦快递","CPB":"金宝汤","PG":"宝洁"},"translate_title":"什么是防御性股票：定义、优势和值得关注的股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CPB":0.9,"FDX":0.9,"KO":0.9,"LMT":0.9,"MCD":0.9,"PG":0.9},"content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":178888663,"gmtCreate":1626797148052,"gmtModify":1703765473079,"author":{"id":"3577443068440656","authorId":"3577443068440656","name":"Alykrunch","avatar":"https://community-static.tradeup.com/news/31f6afa1679347244125537288dce699","vip":1,"crmLevel":3,"crmLevelSwitch":0},"htmlText":"Good article, but i do not fully subscribe to the recommended stocks. (Still buyers beware)","listText":"Good article, but i do not fully subscribe to the recommended stocks. (Still buyers beware)","text":"Good article, but i do not fully subscribe to the recommended stocks. (Still buyers beware)","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/178888663","repostId":1154177675,"repostType":2,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":171233095,"gmtCreate":1626745482417,"gmtModify":1703764307675,"author":{"id":"3581937910767045","authorId":"3581937910767045","name":"Pluto891","avatar":"https://static.tigerbbs.com/c9963f2ef3d3ad2aff28340461d3d6d0","vip":1,"crmLevel":2,"crmLevelSwitch":1},"htmlText":"good read","listText":"good read","text":"good read","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/171233095","repostId":1154177675,"repostType":4,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":171699782,"gmtCreate":1626740548146,"gmtModify":1703764149066,"author":{"id":"4088850777374920","authorId":"4088850777374920","name":"RonnieO","avatar":"https://static.tigerbbs.com/1292a5981b699a40c70f37718afa2985","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Good","listText":"Good","text":"Good","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/171699782","repostId":1154177675,"repostType":4,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5267524,"gmtCreate":1626743672009,"gmtModify":1663231188247,"authorId":3584680402793671,"author":{"id":3584680402793671,"authorId":3584680402793671,"name":"Bull1973","avatar":"https://static.tigerbbs.com/866d29bf88ff7363d121a5ccc6028aae","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171699782,"type":1,"supId":0,"prevId":0,"content":"Ok","text":"Ok","html":"Ok"}],"langContent":"EN"},{"id":171843323,"gmtCreate":1626739097062,"gmtModify":1703764107102,"author":{"id":"3575407991823828","authorId":"3575407991823828","name":"Alihuat","avatar":"https://static.tigerbbs.com/d450d741a6a78a315c768cda177843d8","vip":1,"crmLevel":4,"crmLevelSwitch":0},"htmlText":"Now i know.. i alwaus hear growth stocks only..","listText":"Now i know.. i alwaus hear growth stocks only..","text":"Now i know.. i alwaus hear growth stocks only..","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/171843323","repostId":1154177675,"repostType":4,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":171825260,"gmtCreate":1626738274750,"gmtModify":1703764085809,"author":{"id":"3571627110799155","authorId":"3571627110799155","name":"JJQ","avatar":"https://community-static.tradeup.com/news/56f38f5ea7b683e48c466bc341ca6d33","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":7,"crmLevelSwitch":1},"htmlText":"Please Like and comment! Thank you&nbsp;","listText":"Please Like and comment! Thank you&nbsp;","text":"Please Like and comment! Thank you","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":4,"repostSize":0,"link":"https://ttm.financial/post/171825260","repostId":1154177675,"repostType":4,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5270913,"gmtCreate":1626768900702,"gmtModify":1663231207138,"authorId":3571627110799155,"author":{"id":3571627110799155,"authorId":3571627110799155,"name":"JJQ","avatar":"https://community-static.tradeup.com/news/56f38f5ea7b683e48c466bc341ca6d33","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-3","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Legendary Trader","description":"Total number of securities or futures transactions reached 300","bigImgUrl":"https://static.tigerbbs.com/656db16598a0b8f21429e10d6c1cb033","smallImgUrl":"https://static.tigerbbs.com/03f10910d4dd9234f9b5702a3342193a","grayImgUrl":"https://static.tigerbbs.com/0c767e35268feb729d50d3fa9a386c5a","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.28","exceedPercentage":"93.85%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":7,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171825260,"type":1,"supId":5266564,"prevId":0,"content":"??","text":"??","html":"??"},{"id":5270906,"gmtCreate":1626768877132,"gmtModify":1663231206837,"authorId":3571627110799155,"author":{"id":3571627110799155,"authorId":3571627110799155,"name":"JJQ","avatar":"https://community-static.tradeup.com/news/56f38f5ea7b683e48c466bc341ca6d33","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-3","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Legendary Trader","description":"Total number of securities or futures transactions reached 300","bigImgUrl":"https://static.tigerbbs.com/656db16598a0b8f21429e10d6c1cb033","smallImgUrl":"https://static.tigerbbs.com/03f10910d4dd9234f9b5702a3342193a","grayImgUrl":"https://static.tigerbbs.com/0c767e35268feb729d50d3fa9a386c5a","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.28","exceedPercentage":"93.85%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":7,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171825260,"type":1,"supId":5267179,"prevId":0,"content":"Thank you!","text":"Thank you!","html":"Thank you!"},{"id":5267179,"gmtCreate":1626742001789,"gmtModify":1663231188733,"authorId":3583401463837686,"author":{"id":3583401463837686,"authorId":3583401463837686,"name":"Mystique","avatar":"https://static.tigerbbs.com/80553c2968edf6d8be729b4092825a07","vip":1,"crmLevel":6,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171825260,"type":1,"supId":0,"prevId":0,"content":"ok","text":"ok","html":"ok"},{"id":5266564,"gmtCreate":1626739012166,"gmtModify":1635225778178,"authorId":3576273819527804,"author":{"id":3576273819527804,"authorId":3576273819527804,"name":"Felicialim","avatar":"https://static.tigerbbs.com/93b9dd65b95fb4d9322224d3c233d6f4","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171825260,"type":1,"supId":0,"prevId":0,"content":"Morning","text":"Morning","html":"Morning"}],"langContent":"EN"},{"id":171860504,"gmtCreate":1626737207308,"gmtModify":1703764062467,"author":{"id":"3576260758860416","authorId":"3576260758860416","name":"andrew123","avatar":"https://community-static.tradeup.com/news/f3e049e64de259e717c6e652c0aca653","vip":1,"hat":"https://static.tigerbbs.com/4c5ceab71416b120bab4604c0754b52a","crmLevel":4,"crmLevelSwitch":0},"htmlText":"Agree. In time of FUD defensive sector better protection. Like n comment","listText":"Agree. In time of FUD defensive sector better protection. Like n comment","text":"Agree. In time of FUD defensive sector better protection. Like n comment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/171860504","repostId":1154177675,"repostType":4,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5266284,"gmtCreate":1626737317831,"gmtModify":1635225801359,"authorId":3586910069385777,"author":{"id":3586910069385777,"authorId":3586910069385777,"name":"Platypat","avatar":"https://community-static.tradeup.com/news/4ce9037ef4459431155bfa046089601a","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171860504,"type":1,"supId":0,"prevId":0,"content":"Dont want to buy guns ","text":"Dont want to buy guns ","html":"Dont want to buy guns "}],"langContent":"EN"},{"id":171884865,"gmtCreate":1626737058557,"gmtModify":1703764059176,"author":{"id":"4087554746740450","authorId":"4087554746740450","name":"elvinfu","avatar":"https://static.tigerbbs.com/ba2c793bc5f9f62e9a9e7fabcd5ba0d2","vip":1,"hat":"https://static.tigerbbs.com/b073a07f77dbe6b3bec6b12311fde6bd","crmLevel":1,"crmLevelSwitch":0},"htmlText":"Nice","listText":"Nice","text":"Nice","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/171884865","repostId":1154177675,"repostType":4,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":171880878,"gmtCreate":1626736435994,"gmtModify":1703764048057,"author":{"id":"3582018233797881","authorId":"3582018233797881","name":"Jayk7","avatar":"https://static.tigerbbs.com/61fdb0315d51df04227ca28af7bcdf19","vip":1,"crmLevel":4,"crmLevelSwitch":0},"htmlText":"Nice","listText":"Nice","text":"Nice","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/171880878","repostId":1154177675,"repostType":4,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":171815753,"gmtCreate":1626736285972,"gmtModify":1703764044298,"author":{"id":"3559787818034959","authorId":"3559787818034959","name":"Ericlam","avatar":"https://static.tigerbbs.com/f2154f4bb8afd22f8e6fde60b57acb69","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":7,"crmLevelSwitch":1},"htmlText":"good sharing&nbsp;","listText":"good sharing&nbsp;","text":"good sharing","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":9,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/171815753","repostId":1154177675,"repostType":4,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5269993,"gmtCreate":1626758704120,"gmtModify":1663231203628,"authorId":3559787818034959,"author":{"id":3559787818034959,"authorId":3559787818034959,"name":"Ericlam","avatar":"https://static.tigerbbs.com/f2154f4bb8afd22f8e6fde60b57acb69","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.05.04","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":7,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171815753,"type":1,"supId":5267035,"prevId":0,"content":"nice","text":"nice","html":"nice"},{"id":5267035,"gmtCreate":1626741370713,"gmtModify":1663231184436,"authorId":3575326435298567,"author":{"id":3575326435298567,"authorId":3575326435298567,"name":"Angsana","avatar":"https://static.tigerbbs.com/3c8492153d7059ec1aa704a1bd541c14","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171815753,"type":1,"supId":0,"prevId":0,"content":"hi","text":"hi","html":"hi"}],"langContent":"EN"},{"id":171815089,"gmtCreate":1626736232641,"gmtModify":1703764042512,"author":{"id":"4088039480444780","authorId":"4088039480444780","name":"Lkc","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":3,"crmLevelSwitch":0},"htmlText":"Cool","listText":"Cool","text":"Cool","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/171815089","repostId":1154177675,"repostType":4,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5266126,"gmtCreate":1626736327517,"gmtModify":1663231182739,"authorId":3559787818034959,"author":{"id":3559787818034959,"authorId":3559787818034959,"name":"Ericlam","avatar":"https://static.tigerbbs.com/f2154f4bb8afd22f8e6fde60b57acb69","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.05.04","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":7,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171815089,"type":1,"supId":0,"prevId":0,"content":"nice","text":"nice","html":"nice"},{"id":5266130,"gmtCreate":1626736354503,"gmtModify":1635225814198,"authorId":3580699589385230,"author":{"id":3580699589385230,"authorId":3580699589385230,"name":"Mr. T","avatar":"https://static.tigerbbs.com/ffcbb09604bf679c78d4b172e4ad0c39","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-1","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Elite Trader","description":"Total number of securities or futures transactions reached 30","bigImgUrl":"https://static.tigerbbs.com/ab0f87127c854ce3191a752d57b46edc","smallImgUrl":"https://static.tigerbbs.com/c9835ce48b8c8743566d344ac7a7ba8c","grayImgUrl":"https://static.tigerbbs.com/76754b53ce7a90019f132c1d2fbc698f","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":"60.32%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171815089,"type":1,"supId":0,"prevId":0,"content":"Beans","text":"Beans","html":"Beans"}],"langContent":"EN"},{"id":171818466,"gmtCreate":1626736016355,"gmtModify":1703764039900,"author":{"id":"4087734129298080","authorId":"4087734129298080","name":"IronRoar","avatar":"https://static.tigerbbs.com/cf9c156b794329cc799b0ee28ca0b9b2","vip":1,"crmLevel":4,"crmLevelSwitch":1},"htmlText":"very good","listText":"very good","text":"very good","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/171818466","repostId":1154177675,"repostType":4,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":171818924,"gmtCreate":1626735867168,"gmtModify":1703764039082,"author":{"id":"3575868096668855","authorId":"3575868096668855","name":"Kenjing","avatar":"https://static.tigerbbs.com/c8943963650fda38afb46a9fe04b592c","vip":1,"crmLevel":3,"crmLevelSwitch":0},"htmlText":"Nice&nbsp;","listText":"Nice&nbsp;","text":"Nice","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/171818924","repostId":1154177675,"repostType":4,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5266104,"gmtCreate":1626736133315,"gmtModify":1663231182441,"authorId":3585015704454479,"author":{"id":3585015704454479,"authorId":3585015704454479,"name":"月亮湾湾照狮城","avatar":"https://static.tigerbbs.com/a65141f7fef1fccd27684150e1416319","vip":1,"crmLevel":2,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171818924,"type":1,"supId":0,"prevId":0,"content":"[微笑] [微笑]","text":"[微笑] [微笑]","html":"[微笑] [微笑]"}],"langContent":"EN"},{"id":171811204,"gmtCreate":1626735790808,"gmtModify":1703764038258,"author":{"id":"3582891836402828","authorId":"3582891836402828","name":"LionKingAir","avatar":"https://static.tigerbbs.com/94f60573baa578de19304c643193dad9","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Thanks&nbsp;","listText":"Thanks&nbsp;","text":"Thanks","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/171811204","repostId":1154177675,"repostType":4,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5266084,"gmtCreate":1626735880828,"gmtModify":1663231182638,"authorId":3575868096668855,"author":{"id":3575868096668855,"authorId":3575868096668855,"name":"Kenjing","avatar":"https://static.tigerbbs.com/c8943963650fda38afb46a9fe04b592c","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171811204,"type":1,"supId":0,"prevId":0,"content":"NiCe","text":"NiCe","html":"NiCe"}],"langContent":"EN"},{"id":171811617,"gmtCreate":1626735783839,"gmtModify":1703764038095,"author":{"id":"3574631043565351","authorId":"3574631043565351","name":"vhardono","avatar":"https://static.tigerbbs.com/63f0b8b8dd585e7c4912904c497d9442","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"please comment n like","listText":"please comment n like","text":"please comment n like","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":8,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/171811617","repostId":1154177675,"repostType":4,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5266085,"gmtCreate":1626735881179,"gmtModify":1663231182033,"authorId":3567819041457321,"author":{"id":3567819041457321,"authorId":3567819041457321,"name":"BOTANIKA","avatar":"https://static.tigerbbs.com/4f98f0d75089e9046593d4b550028387","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171811617,"type":1,"supId":0,"prevId":0,"content":"ok","text":"ok","html":"ok"},{"id":5266077,"gmtCreate":1626735802786,"gmtModify":1663231180645,"authorId":3582891836402828,"author":{"id":3582891836402828,"authorId":3582891836402828,"name":"LionKingAir","avatar":"https://static.tigerbbs.com/94f60573baa578de19304c643193dad9","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171811617,"type":1,"supId":0,"prevId":0,"content":"Good","text":"Good","html":"Good"}],"langContent":"EN"},{"id":171834031,"gmtCreate":1626735042923,"gmtModify":1703764029574,"author":{"id":"3584860762907200","authorId":"3584860762907200","name":"littlekitten","avatar":"https://static.tigerbbs.com/ccd59ff6c96999c839e3b5709cfb00ef","vip":1,"crmLevel":7,"crmLevelSwitch":0},"htmlText":"Cool!","listText":"Cool!","text":"Cool!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/171834031","repostId":1154177675,"repostType":4,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5266105,"gmtCreate":1626736134482,"gmtModify":1663231181546,"authorId":3584839794199440,"author":{"id":3584839794199440,"authorId":3584839794199440,"name":"Mammoth","avatar":"https://static.tigerbbs.com/036db6f852821966d5b40229ad16e66a","vip":1,"crmLevel":4,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171834031,"type":1,"supId":0,"prevId":0,"content":"[微笑] [微笑]","text":"[微笑] [微笑]","html":"[微笑] [微笑]"}],"langContent":"EN"},{"id":171835455,"gmtCreate":1626735027077,"gmtModify":1703764030731,"author":{"id":"3576274545052910","authorId":"3576274545052910","name":"Kevin92","avatar":"https://static.tigerbbs.com/c5ff4addbbdb8d9d15fec29f9709b0c3","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Like and comment","listText":"Like and comment","text":"Like and comment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/171835455","repostId":1154177675,"repostType":4,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5266099,"gmtCreate":1626736077543,"gmtModify":1663231181748,"authorId":3586059298879232,"author":{"id":3586059298879232,"authorId":3586059298879232,"name":"Tomxx","avatar":"https://static.tigerbbs.com/abd49c57222b3b842f3f9af84b9d5b97","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.03.03","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171835455,"type":1,"supId":0,"prevId":0,"content":"Ok","text":"Ok","html":"Ok"}],"langContent":"EN"},{"id":171835568,"gmtCreate":1626735012654,"gmtModify":1703764029410,"author":{"id":"3576274545052910","authorId":"3576274545052910","name":"Kevin92","avatar":"https://static.tigerbbs.com/c5ff4addbbdb8d9d15fec29f9709b0c3","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Like and comment","listText":"Like and comment","text":"Like and comment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/171835568","repostId":1154177675,"repostType":4,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5266276,"gmtCreate":1626737249088,"gmtModify":1663231185530,"authorId":3576260758860416,"author":{"id":3576260758860416,"authorId":3576260758860416,"name":"andrew123","avatar":"https://community-static.tradeup.com/news/f3e049e64de259e717c6e652c0aca653","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171835568,"type":1,"supId":0,"prevId":0,"content":"like yrs u like mine.ok","text":"like yrs u like mine.ok","html":"like yrs u like mine.ok"},{"id":5266131,"gmtCreate":1626736360478,"gmtModify":1663231178556,"authorId":3559787818034959,"author":{"id":3559787818034959,"authorId":3559787818034959,"name":"Ericlam","avatar":"https://static.tigerbbs.com/f2154f4bb8afd22f8e6fde60b57acb69","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.05.04","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":7,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171835568,"type":1,"supId":0,"prevId":0,"content":"nice","text":"nice","html":"nice"}],"langContent":"EN"},{"id":171836190,"gmtCreate":1626734771410,"gmtModify":1703764025818,"author":{"id":"3573646272982241","authorId":"3573646272982241","name":"ChrisCen","avatar":"https://static.tigerbbs.com/9ed69e076449c1e1af50807f0353afc3","vip":1,"hat":"https://static.tigerbbs.com/f84859c65fc2d7681e28f6b8e9b0535a","crmLevel":2,"crmLevelSwitch":1},"htmlText":"Liked n comment","listText":"Liked n comment","text":"Liked n comment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/171836190","repostId":1154177675,"repostType":4,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5265989,"gmtCreate":1626735007430,"gmtModify":1663231182132,"authorId":3576274545052910,"author":{"id":3576274545052910,"authorId":3576274545052910,"name":"Kevin92","avatar":"https://static.tigerbbs.com/c5ff4addbbdb8d9d15fec29f9709b0c3","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171836190,"type":1,"supId":0,"prevId":0,"content":"Like and comment","text":"Like and comment","html":"Like and comment"}],"langContent":"EN"},{"id":171831113,"gmtCreate":1626734404132,"gmtModify":1703764022072,"author":{"id":"3581551993003103","authorId":"3581551993003103","name":"MesutOzil","avatar":"https://static.tigerbbs.com/aa9c35794084a0196a2ed35371f58152","vip":1,"crmLevel":1,"crmLevelSwitch":0},"htmlText":"Thanks for the info&nbsp;","listText":"Thanks for the info&nbsp;","text":"Thanks for the info","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/171831113","repostId":1154177675,"repostType":4,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5265956,"gmtCreate":1626734591900,"gmtModify":1663231181332,"authorId":3586470645934044,"author":{"id":3586470645934044,"authorId":3586470645934044,"name":"ramius75","avatar":"https://community-static.tradeup.com/news/c4c299991e47de2cfc27ff1e679cc5ee","vip":1,"crmLevel":5,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171831113,"type":1,"supId":0,"prevId":0,"content":"Indeed","text":"Indeed","html":"Indeed"},{"id":5266015,"gmtCreate":1626735211388,"gmtModify":1663231178561,"authorId":3571037900661236,"author":{"id":3571037900661236,"authorId":3571037900661236,"name":"Acestars","avatar":"https://static.tigerbbs.com/cb536be016acf6e75b6c4b057fc2395b","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171831113,"type":1,"supId":0,"prevId":0,"content":"yea","text":"yea","html":"yea"}],"langContent":"EN"},{"id":171839990,"gmtCreate":1626734073510,"gmtModify":1703764019286,"author":{"id":"3581919183376534","authorId":"3581919183376534","name":"Huatkor","avatar":"https://static.tigerbbs.com/6f3897aace055b5fa9f58089c1e880d8","vip":1,"crmLevel":4,"crmLevelSwitch":0},"htmlText":"Good to know.&nbsp;","listText":"Good to know.&nbsp;","text":"Good to know.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/171839990","repostId":1154177675,"repostType":4,"repost":{"id":"1154177675","pubTimestamp":1626710671,"share":"https://www.laohu8.com/m/news/1154177675?lang=&edition=full","pubTime":"2021-07-20 00:04","market":"us","language":"en","title":"What are defensive stocks: definition, advantages and stocks to watch","url":"https://stock-news.laohu8.com/highlight/detail?id=1154177675","media":"cityindex","summary":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’r","content":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. <a href=\"https://laohu8.com/S/DFS\">Discover</a> what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\n<a href=\"https://laohu8.com/S/HCSG\">Healthcare</a> stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n<ul>\n <li>Creating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks</li>\n <li>Reducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio</li>\n <li>Providing a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets</li>\n</ul>\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\n<a href=\"https://laohu8.com/S/FDX\">FedEx</a> (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n<ul>\n <li>Past year share price increase 113.3%</li>\n <li>5-year share price increase 88.56%</li>\n <li>Dividend yield 0.86%</li>\n <li>P/E ratio 26.74</li>\n <li>EPS 11.46</li>\n</ul>\n<a href=\"https://laohu8.com/S/KO\">Coca-Cola</a> (KO)\nCoca-Cola is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n<ul>\n <li>Past year share price increase 14.16%</li>\n <li>5-year share price increase 21.85%</li>\n <li>Dividend yield 2.99%</li>\n <li>P/E ratio 33.70</li>\n <li>EPS 1.68</li>\n</ul>\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n<ul>\n <li>Past year share price rise 2.66%</li>\n <li>5-year share price fall -21.1%</li>\n <li>10-year share price rise 55.10%</li>\n <li>Dividend yield 2.98%</li>\n <li>P/E ratio 18.76</li>\n <li>EPS 2.67</li>\n</ul>\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n<ul>\n <li>Past year share price rise 3.30%</li>\n <li>5 – year share price rise 10.82%</li>\n <li>Dividend yield 4.45%</li>\n <li>P/E ratio 13.2</li>\n <li>EPS 0.4</li>\n</ul>\n<a href=\"https://laohu8.com/S/LMT\">Lockheed Martin</a> Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n<ul>\n <li>Past year share price fall -4.68%</li>\n <li>5 – year share price rise 62.74%</li>\n <li>Dividend yield 2.64%</li>\n <li>P/E ratio 15.9</li>\n <li>EPS 24.88</li>\n</ul>\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n<ul>\n <li>Past year share price rise 17.51%</li>\n <li>5 - year share price rise 89.35%</li>\n <li>Dividend yield 2.21%</li>\n <li>P/E ratio 33.94</li>\n <li>EPS 6.93</li>\n</ul>\nProcter and Gamble\nThe Procter &amp; Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head &amp; Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n<ul>\n <li>Yearly share price rise 15.29%</li>\n <li>5 – year share price rise 63.97%</li>\n <li>Dividend yield 2.56%</li>\n <li>P/E ratio 25.01</li>\n <li>EPS 5.63</li>\n</ul>\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n<ul>\n <li>Defensive stocks offer relative price stability, whatever the state of the economy</li>\n <li>Defensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns</li>\n <li>Because these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth</li>\n <li>Many defensive stocks provide essential products or services, helping them remain financially stable through economic downturns</li>\n <li>Experts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.</li>\n</ul>","source":"lsy1624549625256","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What are defensive stocks: definition, advantages and stocks to watch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat are defensive stocks: definition, advantages and stocks to watch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-20 00:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/>cityindex</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nDefensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them....\n\n<a href=\"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐","FDX":"联邦快递","CPB":"金宝汤","MCD":"麦当劳","PG":"宝洁","LMT":"洛克希德马丁"},"source_url":"https://www.cityindex.co.uk/market-analysis/what-are-defensive-stocks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1154177675","content_text":"Defensive stocks are thought of as stable investments during periods of economic downturn, so they’re bought as a form of hedging in portfolios. Discover what defensive stocks are and how to use them.\nWhat are defensive stocks?\nDefensive stocks are theshares of companiesthat have continual demand for their products, so they tend to be more stable during most business cycles than ‘risk on’ or ‘growth’ stocks. This means they usually provide consistent dividends and stable earnings regardless of the performance ofstock markets\nWhen there’s an economic downturn, investors often look to shore up their investments by rushing to what they perceive as safe haven stocks – defensive stocks are perceived this way as their value usually falls less than their value orgrowth\nExamples of defensive stocks\nDefence stocks – the shares of companies that manufacture military weapons, ammunition, and fighter jets – are an excellent example of defensive stocks because they’re at the cutting edge of many sciences and have a ready-made customer base.\nMany other sectors are also considered defensive, for example:\nUtilities\nWater, electric, gas and broadband supply utilities are examples of defensive stocks because we all still need them during all economic cycles.\nUtility firms can benefit from a slower economic environment because interest rates tend to be lowered by central banks to guard against the worst effects of a recession; therefore, consumers can still afford to heat their homes and buy petrol at the pump.\nConsumer staples\nFirms that produce or sell consumer staples, which people buy out of necessity, are generally thought of as defensive whatever the economic condition. Supermarkets are a good example.\nThey sell food, drinks, tobacco, and household items. The supermarkets and the companies that fill their shelves generate steady cash flow and more predictable earnings during strong and weak economies. As a result, such stocks often outperformcyclical stocks\nHealthcare stocks\nPharmaceutical firms and medical device makers\nBut as with any sector, some healthcare stocks are as risky as dot coms. For example, in 2020-2021 when just about any listed pharma firm claimed to be making a CV-19 drug breakthrough, it caused a huge and unsustainable surge in prices - known as abubble\nWhy invest in or trade defensive stocks?\nYou’d invest in or trade defensive stocks if you’re looking to protect your portfolio when the economy is weak or the stock market is experiencing high volatility.\nPlus, defensive stocks are often well-established companies with a long history of stock market earnings and dividends, so they’re often of interest to dividend investors, or to anyone looking to find long-term gains with lower risk than other stocks.\nDefence stocks also provide a means of diversifying a portfolio. For example, rather than going all-in on tech stocks that are more susceptible to price fluctuations, you can spread your risk across both cyclical and defensive stocks.\nHow to find good defensive stocks\nThe main way of finding a defensive stock is looking at its beta – the measure of a stock’s volatility compared to the wider market. Typically, defensive stocks will have a lower beta, as they’re less affected by price swings.\nIt’s best to create a set of perameters for the stocks you’re interested in, otherwise you’ll end up combing through the entire stock market to establish which defensive stocks to invest in. For example, you might narrow your search to a particular country, sector or index.\nYou can also identify defensive stocks by looking for companies that have consistently paid out dividends over the years, including during recessions.\nDefensive stock advantages\nThere are a number of advantages to investing in defensive stocks; these include:\n\nCreating a starting point if you’re new to the market– defensive stocks can be a terrific investment and trading starting point for inexperienced investors and traders as they should, in theory, be less volatile, rise and fall in tighter ranges, and be more predictable than growth stocks\nReducing the impact of volatility on your portfolio– during recessions, investors use defensive stocks as a mechanism to protect against losses by generating dividend yields and returns when such value isn’t being created in other sectors. In this sense, defensive stocks canhedgethe losses you might experience in other parts of your portfolio\nProviding a more consistent revenue stream– defensive stocks can generate income over and above any other share price increases, and they often deliver the best dividends even in bearish markets\n\nBest defensive stocks\nLet’s take a look at some of the most famous defensive stocks spanning consumer staples, utility firms, healthcare and defense stocks.\nFedEx (FDX)\nThe delivery sector experienced considerable success during the pandemic because consumers were buying more online. Delivery services became essential, and may even become the ‘new normal’ as demands shift.\nFedEx in particular saw an increase in investment throughout 2020 and 2021. The company provides secure foreign delivery services and business services and even has contracts with the US government. Government contracts are highly prized, as they provide a regular source of income during challenging times.\n\nPast year share price increase 113.3%\n5-year share price increase 88.56%\nDividend yield 0.86%\nP/E ratio 26.74\nEPS 11.46\n\nCoca-Cola (KO)\nCoca-Cola is one of the most popular defensive stocks due to its status as one of the world's most recognisable brands. Other than the flagship beverage we all know and love, it manufactures and distributes nearly 500 other products.\nThe pandemic hit Coca-Cola, and earnings slumped year on year. However, compared to other companies in the sectors, the business managed the situation well.\nDespite the slump in demand for its products in the first two quarters of 2020, the stock still rose by 14%, and the firm paid out a dividend of 3.04%, causing market participants to view it as a low-risk long-term investment.\n\nPast year share price increase 14.16%\n5-year share price increase 21.85%\nDividend yield 2.99%\nP/E ratio 33.70\nEPS 1.68\n\nCampbell’s Soup Co. (CPB)\nThe Campbell’s Soup Company doesn’t only make soup, it makes some of the world’s most popular consumer food products. Some of the other brands it owns include Prego, Swanson’s, and Snyder’s. Because they’re affordable, they sell well during harsh economic times. Tasty, cheap foods are always necessary, so if the brands remain popular, Campbell’s will likely always thrive.\nThe share price fell by 3.98% yearly, but an improved dividend pay-out of 3.03% partially countered this fall. Over the longer ten-year term, the stock has risen by 55%.\n\nPast year share price rise 2.66%\n5-year share price fall -21.1%\n10-year share price rise 55.10%\nDividend yield 2.98%\nP/E ratio 18.76\nEPS 2.67\n\nBAE Systems PLC\nBAE Systems is one of the world’s leading global defence, security and aerospace companies working at the cutting edge of technology, and operates in markets such as the US, UK, Saudi Arabia, and Australia.\nIt creates upwards of 100 new inventions annually for customers in more than 100 countries. In addition, BAE designs, develops, integrates and provides products in areas as diverse as life support and naval combat systems.\n\nPast year share price rise 3.30%\n5 – year share price rise 10.82%\nDividend yield 4.45%\nP/E ratio 13.2\nEPS 0.4\n\nLockheed Martin Corp.\nLockheed Martin is a global security and aerospace company employing more than 110,000 people worldwide. The firm is engaged in the research, design, manufacture, integration and sustainment of advanced technology systems, products and services.\nThe firm is ranked 60th on the 2019 Fortune 500 list of largest industrial corporations.\n\nPast year share price fall -4.68%\n5 – year share price rise 62.74%\nDividend yield 2.64%\nP/E ratio 15.9\nEPS 24.88\n\nMcdonald’s Corp\nMcDonald's is the most well-known fast-food chain worldwide, operating franchised restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the UK. Despite economic hardship, the company sees consistent demand for its products – partly due to the almost cult-like admiration the brand has achieved, and its low prices.\nThe firm's favourite products include the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, Chicken McNuggets, and McDonald's Fries.\n\nPast year share price rise 17.51%\n5 - year share price rise 89.35%\nDividend yield 2.21%\nP/E ratio 33.94\nEPS 6.93\n\nProcter and Gamble\nThe Procter & Gamble Company manufactures and distributes branded consumer packaged goods to global consumers. The company sells products in more than 180 countries through mass merchandisers like department stores, distributors, beauty stores, e-commerce and pharmacies.\nIt offers products under the brands Head & Shoulders, Pantene, Mach3, Febreze, Bounty and Charmin.\nThese consumer staples are always in demand, so while the company experiences fluctuations in some of its brands, its portfolio is diversified enough that it usually remains stable.\n\nYearly share price rise 15.29%\n5 – year share price rise 63.97%\nDividend yield 2.56%\nP/E ratio 25.01\nEPS 5.63\n\nAs can be seen by examining the above company data and the most recent metrics, there is no one-size-fits-all method to evaluate defensive stocks.\nSome firms have paid out a combination of high dividends and enjoyed significant share price growth compared to their peers. Others have seen their share prices fall but continued to pay out dividends.\nUsing various measurements, such as the dividend yield, EPS and P/E ratio, together with the share price movements of the short, medium and long term, should enable you to make informed investment decisions.\nDefensive stocks key points\n\nDefensive stocks offer relative price stability, whatever the state of the economy\nDefensive shares also generate dividends as regular income, with the dividend payments countering the slow share growth returns\nBecause these companies are so well established and have robust business models, it’s unlikely that their share prices will drop dramatically. Instead, they typically demonstrate slow share price growth\nMany defensive stocks provide essential products or services, helping them remain financially stable through economic downturns\nExperts often refer to defensive stocks as non-cyclical stocks; they perform well regardless of the economy, while cyclical stocks typically do well only when the economy performs.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5265929,"gmtCreate":1626734195417,"gmtModify":1663231178643,"authorId":3574251612695532,"author":{"id":3574251612695532,"authorId":3574251612695532,"name":"williamtay","avatar":"https://static.tigerbbs.com/c00441308daf5913d12a1f1b4ac1db1c","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":171839990,"type":1,"supId":0,"prevId":0,"content":"comment","text":"comment","html":"comment"}],"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":282,"commentSize":40,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}