The Coronavirus outbreak has created turbulence in the global economy with fluctuations and volatility in the global financial market. But amidst this turbulence, a few good defensive dividend stocks can be a great find for investors.
Defensive stocksare generally immune or insensitive to the state of the economy. These include products and services that are necessities and are thereby steady performers even during global economic fallout like now.
Even though the market has recovered slightly from the recent blows, a few stocks of companies with solid businesses are estimated to be constant performers in the recent future. Having such names on your portfolio can help pacify the volatility and turn out to be intelligent investments.
Let us take a look at the top three names of such stocks.
3M (NYSE: MMM): Coronavirus Stock
3M is a company that produces N95 masks and other equipment demanded by the health workers and required in the health sector right now. It is one of the front-runners in the fight against COVID-19, who have increased their production of N95 respirator and other health equipment. Along with respirators, they also manufacture other health products, adhesives, adhesive tape, sandpaper, and electrical supplies.
While some of its products are industrial focused and cyclical, the health unit accounted for over 30% of the operating income last year, and it earned $7.81 per share with a yield of 4.4%.
Duke Energy: Defensive yield that can be capitalized on
Duke Energy is a regulated utility that covers parts of Southeast and Midwest in the U.S. While the public utility is considered to be a boring investment as they have a state-sanctioned return, the stocks of this company can be one of the most secure and valuable investments in this tumbling market.
The states ensure the company makes enough to cover its costs and earn a “reasonable return” based on its percentage of assets or equity. Duke Energy has a market capitalization of $58 billion and a yield of 4.7%, earning $5.08 last year with a P/E of 15.8. The stock is a safe bet for investors in this market as it has gone down by only 8% amidst this economic fallout.
Unilever: A great option for global defensive play
Unilever is one of the premier consumer products companies in the world producing items that consumers would buy regardless of the economy.
Unilever generated a revenue of $52 billion last year, earning $2.14 per share, with a P/E of 23, and a dividend yield of 3.8%. The company’s payout ratio is about 85%, which is pretty high. Unilever stocks can yield returns through any market situation, as assessed by experts. In times of such volatility and fallout of the global economy, these 3 stocks can stand out to be safe investments leading to secure returns, with low chances of any downturns.