Defensive stocks

  • January 20, 2023
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Defensive Stocks

What are ‘defensive’ stocks? –

Defensive stocks are typically companies that are less affected by economic downturns, as their products or services are considered essential or in high demand regardless of the state of the economy. These stocks tend to provide stable returns and lower volatility compared to other sectors.

Here are a few examples of defensive stocks in Australia:

1. Woolworths Group (WOW.AX):
Woolworths is a leading Australian supermarket chain with a strong market presence. The company operates in the consumer staples sector, which tends to be defensive as people continue to buy essential items even during economic downturns. Website: https://www.woolworthsgroup.com.au/

2. CSL Limited (CSL.AX):
CSL is a global biotechnology company that specializes in developing and manufacturing vaccines, plasma therapies, and other life-saving products. The demand for healthcare products remains relatively stable, making CSL a defensive stock. Website: https://www.csl.com/

3. Sydney Airport (SYD.AX):
Sydney Airport is the largest airport in Australia and plays a crucial role in the country’s transportation infrastructure. Airports are considered defensive due to their essential function, and Sydney Airport benefits from consistent passenger traffic. Website: https://www.sydneyairport.com.au/

4. Telstra Corporation Limited (TLS.AX):
Telstra is Australia’s largest telecommunications company, providing a range of services such as fixed-line and mobile communications, internet, and data solutions. Telecommunications services are essential in today’s connected world, making Telstra a defensive stock. Website: https://www.telstra.com.au/

5. Transurban Group (TCL.AX):
Transurban is a toll road operator and developer with a significant presence in Australia. The company generates revenue from toll collections, and demand for road infrastructure tends to remain stable regardless of economic conditions. Website: https://www.transurban.com/

Please note that stock performance can vary, and it’s essential to conduct thorough research and analysis before making any investment decisions.

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