Top Performing Defensive Stocks

Interestingly, Stay up to date on all defensive stocks with Benzinga, your go-to stock market re platform with real-time news and actionable insights

Stock market performance

Composed of large-cap U, in today's financial world

Here are the best defensive stocks with low correlation to SPY

One investment strategy with the potential to outperform over long periods is buying stocks that have a low correlation coefficient to SPY

Furthermore, This tells us that metric is primarily measured by the stock's beta, which also incorporates measures of the stock's volatility

Furthermore, 0, while stocks can have a beta of:Above 1. 0, meaning that the stock generally moves in the same direction as the market and in a more volatile fashionBelow 1 (fascinating analysis), in light of current trends. 0 but higher than 0. 0, meaning that the stock generally moves in the same direction as the market but in a less volatile mannerAt 0

Additionally, 04Buy stockBMYBristol-Myers Squibb0, in light of current trends. 20Buy stockMCDMcDonald's-0. 33Buy stockStart Your Free 14-Day Benzinga TrialTable of ContentsQuick Look at the Top Performing Defensive Stocks:Deep Dive1

Furthermore, On the other hand, Cter & Gamble Co. (NYSE: PG)See All 18 ItemsDeep DiveThe ing defensive stocks all have a low correlation coefficient (beta of 0

Moreover, 50 or under) compared to the SPY

In addition, these stocks exhibit sound fundamentals in the form of positive return on equity; return on assets; return on investment; and gross, operating and net margins

This leads to the conclusion that y also have positive historical earnings and revenue growth

However, A combination of quality characteristics plus a lower-than-average beta makes these stocks potential defensive picks

Additionally, Cter & Gamble Co

The company vides an array of essential ducts to consumers worldwide via five segments: beauty; grooming; healthcare; fabric and care; and baby, feminine and family care

PG has achieved a strong network effect through its robust distribution network consisting of mass merchandisers, e-commerce, grocery stores, membership stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores and pharmacies

Nevertheless, For the former, MRK offers various human pharmaceutical ducts related to oncology, immunology, neuroscience, virology, cardiovascular and diabetes

For the latter, MRK discovers, develops, manufactures and veterinary pharmaceuticals, vaccines and health management services such as identification and tracking devices (something worth watching) (this bears monitoring), in light of current trends

Nevertheless, Worldwide, MRK collaborates with other healthcare companies to develop and commercialize vital medications, including HIV/AIDS treatments (an important development)

Notable examples include its cancer treatments, which treat lymphoma, myeloma and leukemia (this bears monitoring)

The company sells ducts not only to wholesalers but also directly to pharmacies, hospitals, clinics and government agencies

On the other hand, American Tower Corp

Its major lessees include AT&T Inc. (NYSE: T) and T-Mobile US Inc (this bears monitoring)

Meanwhile, (NASDAQ: TMUS)

Over the century, the company has expanded to become one of the largest suppliers of cereals and pre-packaged foods worldwide

However, GIS is known for its large selection of ducts, with famous brands such as Fruit Gushers, Cinnamon Toast Crunch, Cocoa Puffs, Nature Valley, Pillsbury, Yoplait, Wheaties and Cheerios being pantry staples across America (remarkable data) (this bears monitoring)

Additionally, Conversely, The company distributes ducts via a robust network of grocery stores, mass merchandisers, membership stores, natural food chains, e-commerce, convenience stores, pharmacies and discount retailers (noteworthy indeed)

Currently, the company has a five-year monthly beta of 0

Moreover, 32, making it a third as volatile as the overall market

However, Furthermore, There’s also a breakfast, including muffins, sausages, biscuit and bagel sandwiches, oatmeal, hash browns, breakfast burritos and pancakes (something worth watching)

Moreover, A solid diversification benefit of having McDonald's in your portfolio is it can vide considerable resilience to cycles and unforeseen market drawdowns

On the other hand, S of Low-Correlation in low-correlation stocks can be a good way to insulate your portfolio from the broader market's movements

For investors with lower risk tolerance, in low-correlation stocks can help reduce volatility and ensure a more consistent sequence of returns, in light of current trends

Additionally, It can also help tect previous investment returns and reduce drawdowns, which is how large a peak-to-trough loss is for an investment portfolio

Lower Market RiskMarket risk is the risk that volatility in the broader stock market can affect the value of your investments

Market risk is unavoidable unless you only hold cash, but it can be mitigated by holding stocks with a low correlation coefficient to the SPY

On the other hand, Lower VolatilityLow beta stocks tend to also have a lower standard deviation

This's the amount that a stock has historically moved around its average

Keeping standard deviation low by picking low-beta stocks can help your investment compound at a steadier rate without the violent ups and downs, in this volatile climate

Over the long term, keeping unrealized losses minimized can play an important role in increasing total returns

Meanwhile, Better Portfolio Risk-Adjusted ReturnsModern Portfolio Theory states that a portfolio of uncorrelated assets with positive expected returns can duce more return for less risk compared to a single asset

At the same time, For your asset allocation plan, incorporating low correlation into a diversified portfolio of stocks, bonds, cash and alternatives can help investors optimize their risk-adjusted returns further by dampening volatility without sacrificing performance

Often, adding low stocks with a low correlation to SPY or the broad market can increase a portfolio's Sharpe ratio, a measure of risk-adjusted returns, in this volatile climate

S of in Defensive StocksDefensive stocks are those with traits that help them endure during difficult economic or market conditions

Often, this translates into a competitive advantage that ensures their margins, revenue and earnings stay healthy, in today's financial world

Defensive stocks tend to be found in the consumer staples and healthcare industries because of their evergreen demand and essential nature

In these stocks can be desirable for investors with a lower risk tolerance or shorter time horizon

In contrast, Counter-Cyclical PerformanceDefensive sectors healthcare and consumer staples tend to lag during low-interest rate bull but can strongly outperform during times of high inflation or rising interest rates

Furthermore, Of these stocks, both MRK and BMY are healthcare sector companies, while GIS and PG are consumer staples

The evergreen demand and essential nature of these companies help ensure their revenues, earnings and margins stay relatively intact during times of economic stress, given current economic conditions

Dividend YieldInvestors looking for higher-than-average income might defensive stocks

Because defensive stocks are often those of mature, blue-chip companies, they tend to have surplus cash reserves that they pay out quarterly to investors as a dividend

Often, the dividend yield from these companies exceeded the average offered by the SPY ETF

Moreover, On the other hand, Dividends from U

Companies are generally taxed at a more favorable rate, making them tax efficient

However, Re these dividends plays an important role in compounding total returns

Psychological Easelonged bear are difficult to endure for even experienced investors

Having some stocks that remain in the green while the overall market is in the red can be a much-needed psychological boost for investors

Additionally, Investors who need to withdraw money from their portfolios for income can sell s of these companies first to avoid locking in an unrealized loss, considering recent developments

This can sometimes mean the difference between staying the course and remaining invested instead of capitulating and panic-selling

Where to BuyInvestors looking for further insights and reviews of defensive low-correlation stocks can use Benzinga to compare the available options, in today's market environment

Here is also a list of brokers where you can invest in defensive stocks

Com ReviewBest For:Trading IdeasVIEW S & CONS:securely through public

Com's websiteGet Started with public

ComRobinhood ReviewBest For:BeginnersVIEW S & CONS:securely through Robinhood's websiteGet Started with Robinhood<img alt="TradeZero" src="https://cdnwp-s3

Optimize=medium&amp;dpr=2&amp;auto=webp&amp;width=256" srcSet="https://cdnwp-s3