After years of 20% gains and more for the stock market in both 2023 and 2024, we’ve seen a much different outlook on Wall Street since Jan. 1. Many stocks have been stuck in neutral across Q1, and on March 3 we saw the Nasdaq drop almost 3% in a single session in the immediate aftermath of news from Washington about expected tariffs and their impact on major U.S. corporations.
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Of course, profitable investing strategies aren’t built on just a few months of performance. The best long-term strategies involve a diversified approach that provides a strong foundation when times get tough, and an opportunity for growth and income over time.
The following defensive stocks offer a steady return on investment regardless of the macroeconomic picture. All have market values of more than $30 billion, dividends north of 2% and operations in low-risk sectors of the economy:
| Stock | Sector | Market Value | Forward Dividend Yield* |
| Allstate Corp. (ticker: ALL) | Financial | $53.4 billion | 2.0% |
| Consolidated Edison Inc. (ED) | Utilities | $37.5 billion | 3.3% |
| General Mills Inc. (GIS) | Consumer staples | $36.8 billion | 3.7% |
| Gilead Sciences Inc. (GILD) | Health care | $148 billion | 2.7% |
| Hershey Co. (HSY) | Consumer staples | $38.7 billion | 3.0% |
| Kimberly-Clark Corp. (KMB) | Consumer staples | $49 billion | 3.5% |
| Lockheed Martin Corp. (LMT) | Industrials | $114.7 billion | 2.8% |
*As of March 7 close.
Allstate Corp. (ALL)
Market value: $53.4 billion Sector: Financial Dividend: 2.0%
Insurance companies are very stable thanks to steady premiums paid by customers to provide consistent cash flow and support generous dividends. Allstate Corp. is among the largest insurers in the world, providing a host of services ranging from homeowners’ and auto policies to life and disability policies. Thanks to its strong product offerings and reliable operations, the firm just increased its quarterly dividend to $1 per share in February, double the 50 cents paid in 2019 and more than three times the 30 cents paid in 2015. What’s more, Allstate recently announced a $1.5 billion share repurchase plan through late 2026 that will further bolster its stock price.
Consolidated Edison Inc. (ED)
Market value: $37.5 billion Sector: Utilities Dividend: 3.3%
Utility stocks are generally a great sector to consider for long-term investing, given that electricity is a necessity and that the expensive infrastructure and highly regulated nature of the industry mean competition is hard to come by. ConEd distributes electricity to about 3.5 million customers in the New York City area and natural gas to 1.1 million more. This vibrant urban area has strong and stable energy demand, making Consolidated Edison one of the most reliable defensive stocks out there. What’s more, the company has an enviable track record of more than 50 consecutive years of dividend increases, proving a long-term commitment to sharing its success with shareholders.
General Mills Inc. (GIS)
Market value: $36.8 billion Sector: Consumer staples Dividend: 3.7%
An icon among consumer staples, General Mills is the company behind Cheerios cereals, Betty Crocker baking products and Yoplait yogurt, among other famous foodstuffs. When times get tough for consumers, they tend to cut back on luxuries like eating out and travel and instead stay closer to home with comfort food. That makes General Mills a go-to defensive investment that does quite well even when other stocks suffer during a spending drought. With a strong market position thanks to extensive brand reach, there are fewer brands in the grocery store that have a more reliable outlook than GIS.
[Read: 10 of the Best-Performing 401(k) Funds.]
Gilead Sciences Inc. (GILD)
Market value: $148 billion Sector: Health care Dividend: 2.7%
Health care stocks are sure-fire investments regardless of what short-term trends are in favor on Wall Street. After all, just about the only certainty in life is that anyone lucky enough to live into their later years will assuredly need medical care — and with demographics shifting toward older populations both at home and abroad, that’s a tremendous customer base for firms like Gilead. The drugmaker has a strong product pipeline and high-margin treatments for otherwise unserved patient populations, including treatments for HIV/AIDS and unique forms of cancer. While some pharma stocks can be higher risk and higher reward, GILD stock has a “beta” of just 0.25. This financial metric is a measure of volatility, with the broader stock market being measured at 1, stocks that are more volatile ranking higher and less volatile investments ranking lower. In short, GILD is a solid stock that doesn’t make big moves, making it ideal for defensive portfolios.
Hershey Co. (HSY)
Market value: $38.7 billion Sector: Consumer staples Dividend: 3.0%
It’s the little things in life that tend to bring comfort during uncertain times, and Hershey’s sweets are among the go-to products that stay in strong demand even during an economic downturn. What’s more, its extraordinary brand power with products like Hershey’s chocolate and Reese’s peanut butter cups fuel a tremendously reliable business — and tremendously reliable dividends. As proof, the company recently declared its 380th consecutive quarterly dividend, a payout record that spans nearly a century, and it currently pays $1.37 per quarter — roughly double its payout from 2018.
Kimberly-Clark Corp. (KMB)
Market value: $49 billion Sector: Consumer staples Dividend: 3.5%
Paper products powerhouse Kimberly-Clark produces Huggies, Pull-Ups, Kleenex, Cottonelle and other go-to household brands. These products are mainstays of any budget in both good times and bad, as toilet paper and diapers are necessities that see strong demand regardless of broader spending pressures. Thanks to reliable revenue produced by these goods, KMB is a blue-chip stock with tremendous staying power and income potential. As proof, in January KMB announced a quarterly dividend increase to $1.26 per share, marking the company’s 53rd consecutive year of increasing its dividend. That’s a tremendous commitment to shareholders.
Lockheed Martin Corp. (LMT)
Market value: $114.7 billion Sector: Industrials Dividend: 2.8%
Lockheed is an aerospace and defense firm with a rich history and deep relationships with the federal government that make it an attractive defensive stock. There’s definitely flash with LMT stock thanks to its iconic war machines such as the F-117 stealth fighter, the F-16 Fighting Falcon and massive C-130 Hercules military transport plane. But more importantly, Lockheed’s aeronautics division is protected from any current discussions of government cutbacks thanks to a friendly posture from Republicans and President Trump. Specifically, the first Trump administration added more than 20% to the defense budget in the early days of its first term. With limited risk of Uncle Sam pulling the plug on long-term contracts with LMT, the company is able to provide a generous $3.30 quarterly dividend that is double what it was a decade ago.
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7 Defensive Stocks for a Steady Return on Investment originally appeared on usnews.com
Update 03/10/25: This story was previously published at an earlier date and has been updated with new information.
