Defensive Stock

A defensive stock is a stock that is less sensitive to economic downturns than other stocks. This means that defensive stocks tend to hold their value or even increase in value during times of economic uncertainty. Defensive stocks are often considered to be safer investments than other stocks, as they are less likely to lose value during a recession.

There are a number of factors that can make a stock defensive. One factor is the company's business model. Defensive stocks are often companies that produce essential goods or services that are in demand regardless of the economic climate. For example, food, beverage, and healthcare companies are often considered to be defensive stocks. Another factor that can make a stock defensive is its financial strength. Defensive stocks are often companies with strong balance sheets and low debt levels. This makes them more likely to be able to weather economic downturns without going bankrupt.

Defensive stocks can be a good investment for investors who are looking for a safe way to grow their money. However, it is important to remember that defensive stocks do not always outperform other stocks during economic upswings. In fact, defensive stocks can sometimes underperform other stocks during periods of economic growth. As a result, investors who choose to invest in defensive stocks should be prepared for the possibility of lower returns than they would get from other types of stocks.

Here are some examples of defensive stocks:

• Coca-Cola
• PepsiCo
• Johnson & Johnson
• Procter & Gamble
• Colgate-Palmolive
• Walmart
• Target
• Costco
• Walgreens Boots Alliance
• UnitedHealth Group
• Berkshire Hathaway

These companies are all well-established businesses with strong balance sheets and low debt levels. They produce essential goods and services that are in demand regardless of the economic climate. As a result, these companies are often considered to be defensive stocks.