We recently published a list of 12 Best Defensive Stocks To Buy Right Now. In this article, we are going to take a look at where The Procter & Gamble Company (NYSE:PG) stands against other best defensive stocks to buy right now.
A notable event influencing current market sentiment is the recent selloff in technology stocks, primarily driven by speculations surrounding China’s DeepSeek AI model. This incident has underscored the market’s fragility, with key indicators pointing to potential instability. For instance, heavy betting on US tech stocks and rising bond yields have made equities less appealing compared to government debts, challenging the equity risk premium. In this context, the importance of defensive stocks becomes increasingly evident. Defensive stocks, also known as non-cyclical stocks, are those that provide consistent dividends and stable earnings regardless of the state of the overall market. They are typically found in sectors such as utilities, consumer staples, and healthcare.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
For example, companies that produce or distribute essential goods like food, beverages, and hygiene products tend to maintain steady cash flow and predictable earnings during both strong and weak economies. Dividends play a crucial role in investment strategies, offering both immediate income and long-term financial benefits. They represent a portion of a company’s earnings distributed to shareholders, typically on a quarterly basis. Historically, dividends have been a substantial component of total returns in the stock market. According to S&P Dow Jones Indices, since 1936, dividends have accounted for more than one-third of the total equity return of the S&P 500, with capital appreciation making up the other two-thirds.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected stocks that have solid businesses with recurring revenue streams, reliable dividend payouts, and burgeoning growth pipelines. These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A happy couple viewing the products of this household and personal product company in a mass merchandiser store.
The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 68
The Procter & Gamble Company (NYSE:PG) provides branded consumer packaged goods. The firm has an extensive range of consumer staples, including well-known brands such as Tide, Gillette, and Pampers. These everyday essentials maintain consistent demand, even during economic downturns. It also has a diversified geographic footprint that reduces reliance on any single market. In the fourth quarter of fiscal year 2024, P&G reported net sales of $20.5 billion, maintaining steady performance compared to the previous year. The company experienced varied results across its segments, with Health Care sales increasing by 3%, while Beauty and Baby, Feminine & Family Care saw slight declines. The Procter & Gamble Company (NYSE:PG) has a long-standing commitment to returning value to shareholders through dividends. The company has increased its dividend payout for 66 consecutive years.
Overall, PG ranks 10th on our list of best defensive stocks to buy right now. While we acknowledge the potential of PG as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a stock that is more promising than PG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey
