This post was originally published on this site
While there are several portfolio hedging strategies that investors could follow in preparation for a potential market decline, betting on stocks that consistently pay dividends and have a history of generating stable earnings, known as defensive stocks, could be one of the best options. Consistent demand for their products irrespective of business cycles help these companies maintain their financials and protect their stocks from market downturns.
Expanded market reach and near inelastic demand for their products we think make UnitedHealth Group Incorporated (NYSE:UNH), The Coca-Cola Company (NYSE:KO), AT&T Inc. (T), Costco Wholesale Corporation (NASDAQ:COST), and CVS Health Corporation (CVS) solid defensive plays.
