5 Best Defensive Stocks to Buy in the Bear Market

Best Defensive Stocks in a Bear Market

With all of the fear surrounding the global banking system, investors are turning to defensive stocks in case of an upcoming bear market.

The S&P 500 is only up 2% in 2023 so it’s possible that a long term bear market could occur. In times like these, investors can turn to the safety of consumer staples and utilities stocks to weather the storm.

Not only do these stocks provide essential goods and services, but also pay a quarterly dividend to help offset any drops in your stock portfolio.

Best Defensive Stocks in a Bear Market

  1. Walmart (NYSE: WMT)
  2. Proctor and Gamble (NYSE: PG)
  3. Coca Cola (NYSE: KO)
  4. Costco (NYSE: COST)
  5. Pepsi (NASDAQ: PEP)

Walmart (WMT)

Walmart is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. It was founded in 1962 by Sam Walton and is headquartered in Bentonville, Arkansas.

Walmart is a strong investment option in a bear market due to its stable financial performance and defensive characteristics.

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Walmart is the world’s largest company by revenue with annual revenue of over $573 billion in 2022. Walmart operates over 11,000 stores in 27 countries and employs over 2.3 million associates worldwide.

The company is known for its “everyday low prices” strategy and its ability to offer a wide range of products and services to customers across the globe.

As a leading retailer, Walmart has demonstrated resilience during economic downturns, as consumers tend to prioritize essential purchases even in tough times.

Walmart’s large scale and efficient supply chain also enable it to maintain competitive prices, attracting budget-conscious customers during tough times.

Proctor and Gamble

Procter & Gamble (P&G) is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio.

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It was founded in 1837 and is one of the largest consumer goods companies in the world, offering a wide range of products including cleaning supplies, personal care items, baby care products, and pet food.

In 2022, P&G reported annual revenue of $80.28 billion, making it one of the largest companies in the world by revenue.

P&G’s portfolio of brands includes household names such as Tide, Crest, Pampers, and Gillette.

Procter & Gamble is a good investment in a bear market due to the company’s strong financial performance, diversified product portfolio, and defensive characteristics.

As a provider of essential consumer goods, P&G is less vulnerable to economic downturns and is well-positioned to weather market volatility.

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Additionally, P&G’s focus on innovation and brand management has allowed it to maintain a competitive edge in the market, making it a reliable choice for investors.

Coca Cola

Coca-Cola is an American multinational beverage corporation headquartered in Atlanta, Georgia. It was founded in 1886 and is best known for its flagship product, Coca-Cola, a carbonated soft drink.

The company’s portfolio of brands includes a wide range of non-alcoholic beverages such as Sprite, Fanta, and Minute Maid.

In 2022, Coca-Cola reported annual revenue of $43 billion. Coca-Cola is recognized as one of the most valuable brands in the world, with a strong global presence and a reputation for quality products and effective marketing campaigns.

Coca-Cola is a good investment in a bear market due to the company’s defensive characteristics and stable financial performance. As a provider of non-alcoholic beverages, Coca-Cola is less vulnerable to economic downturns and is able to maintain consistent demand even during tough times.

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Costco

Costco Wholesale Corporation, commonly referred to as Costco, is an American multinational corporation that operates a chain of membership-based warehouse clubs. It was founded in 1983 and is headquartered in Issaquah, Washington.

Costco offers a wide range of products including groceries, electronics, appliances, furniture, and automotive supplies. The company is known for its bulk products, low prices, and high-quality private label products.

In 2022, Costco reported annual revenue of $222.73 billion, making it one of the largest retailers in the world.

Costco is a good investment in a bear market due to its defensive characteristics and loyal customer base.

As a provider of essential products at low prices, Costco is less vulnerable to economic downturns and is able to maintain consistent demand even during tough times.

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Additionally, the company’s reputation for high-quality products, ethical business practices, and strong customer loyalty make it a reliable choice for investors seeking stability and long-term growth potential.

Pepsi

PepsiCo is an American multinational food and beverage corporation headquartered in Purchase, New York. It was formed in 1965 through the merger of Pepsi-Cola and Frito-Lay.

The company’s portfolio of brands includes popular products such as Pepsi-Cola, Lay’s, Gatorade, Tropicana, Quaker Oats, and Doritos. In fiscal year 2020, PepsiCo reported annual revenue of $70.4 billion, making it one of the largest food and beverage companies in the world.

PepsiCo is known for its commitment to sustainability and social responsibility, and has implemented various initiatives to reduce its environmental impact and support the communities where it operates.

PepsiCo is a good investment in a bear market due to its diversified product portfolio and defensive characteristics.

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As a provider of essential food and beverage products, PepsiCo is less vulnerable to economic downturns and is able to maintain consistent demand even during tough times.

Ready to Get Started?

If defensive sounds sound attractive to you, it’s easy to start investing in these companies right now.

You’ll first need to open a brokerage account, which allows you to buy and sell stocks with ease.

If you’re not sure where to buy defensive stocks, see our list of best online brokers.

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