With the upcoming presidential election causing uncertainty in the stock market, it’s important for investors to consider defensive dividend stocks to protect their portfolios. These types of stocks typically offer stable returns and can help shield against market volatility.
Here are three defensive dividend stocks to consider:
1. Procter & Gamble (PG): Procter & Gamble is a consumer goods company that has a long history of providing steady dividends to its shareholders. The company’s products, which include well-known brands like Tide and Pampers, are considered essential items that consumers continue to purchase even during economic downturns.
2. Johnson & Johnson (JNJ): Johnson & Johnson is a healthcare giant that offers a diverse range of products, from pharmaceuticals to medical devices to consumer health products. The company has a strong track record of increasing dividends year after year, making it a reliable choice for income investors.
3. PepsiCo (PEP): PepsiCo is a leading beverage and snack company that has proven to be resilient in times of economic uncertainty. The company’s diverse product portfolio, which includes brands like Pepsi, Frito-Lay, and Quaker Oats, provides stability and consistent cash flow for investors.
By investing in defensive dividend stocks like Procter & Gamble, Johnson & Johnson, and PepsiCo, investors can protect their portfolios against pre-election volatility and potentially earn steady income regardless of market conditions.