Investors looking for defensive strategies amid market downturns may want to consider these stocks. The Federal Reserve’s recent interest rate cuts failed to calm fears, leading to a sell-off that extended the Dow Jones Industrial Average’s longest daily losing streak since 1974.
However, some companies have fared better than others. CNBC Pro identified stocks with low beta, high dividend yields, and strong performance as potential defensive plays. The list includes:
* Biopharmaceuticals: Gilead Sciences and AbbVie, which have fallen less than 1% this week and increased by at least 10% year-to-date.
* Utilities:
+ Entergy, with a beta of 0.14 and a 47% year-over-year gain in 2024.
+ Dominion Energy, offering the highest dividend yield with a 5% payment rate.
+ Duke Energy and American Electric Power, both traditional utilities that have held up well during market volatility.
These stocks may provide a safer haven for investors seeking to ride out potential corrections.
Source: https://www.cnbc.com/2024/12/20/playing-defense-if-the-stock-selloff-turns-into-a-market-correction.html