To start off, defensive stocks are a category of stocks that tend to perform well during economic downturns. These are companies that provide essential goods or services that are in high demand. Even when the economy is not doing well. They are often referred to as “recession-proof” stocks. This is because they tend to hold up better than the overall market during difficult economic times.
Retail investors often turn to defensive stocks as a way to mitigate risk in their portfolios. These companies tend to have steady and reliable earnings, which can provide a degree of stability in a volatile market. They also tend to pay dividends, which can provide a steady stream of income for investors.
With this in mind, let’s look at three top defensive stocks to watch in the stock market today.
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