What are defensive stocks and why are they called that?

Defensive stocks are companies that provide essential goods and services that people need regardless of economic conditions. They're called "defensive" because they help protect (or defend) your investment during market downturns. Think of companies that sell everyday necessities like food, household products, utilities, and healthcare. Since people still need these items even when the economy struggles, these businesses tend to have more stable sales and stock prices when markets get rocky.

What does "non-cyclical demand" mean?

Non-cyclical demand refers to products and services that people continue to buy regardless of economic conditions. Unlike luxury items or big purchases that consumers might delay during tough times (cyclical demand), non-cyclical goods like groceries, medications, and utilities are essential to daily life. This consistent demand creates more predictable revenue for companies, even during economic downturns, making their stocks generally more stable during market volatility.

What is "Mercury Retrograde" referring to in this context?

While "Mercury Retrograde" is an astronomical phenomenon where the planet Mercury appears to move backward, it's used here as a metaphor for market volatility or turbulence. Just as Mercury Retrograde is associated with communication disruptions and uncertainty, market volatility creates unpredictable price movements. This stock collection is designed to provide stability during such unstable periods—much like having a reliable plan when things seem to be moving in reverse or becoming chaotic.

What is a "consensus recommendation" for stocks?

A consensus recommendation represents the combined opinion of multiple Wall Street analysts about a particular stock. Analysts study companies and issue recommendations like "buy," "hold," or "sell" based on their research. The consensus takes all these individual opinions and averages them into a single rating, giving investors a quick snapshot of how professional analysts collectively view the stock's prospects. It's a helpful data point, though it should be just one of several factors in your investment decisions.

How do dividends work with these kinds of stocks?

Many defensive stocks in this collection pay dividends, which are regular cash payments to shareholders from the company's profits. For example, companies like Procter & Gamble (PG) and Johnson & Johnson (JNJ) have long histories of not just paying dividends but increasing them year after year. These payments occur regardless of the stock's current market price, providing a steady income stream even when markets are volatile. When you own dividend-paying stocks through Nemo, these payments are automatically deposited into your account, where they can be reinvested or withdrawn.

15 handpicked stocks

Mercury Retrograde

A collection of stable, essential businesses selected by financial experts to help protect your investments during market turbulence. These companies provide the goods and services people need every day, regardless of economic conditions.

Han Tan | Market Analyst

Published on June 17

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Procter & Gamble Company, The

Current price

$152.21

As a global leader in consumer staples, its portfolio of essential household brands ensures consistent demand through any economic climate.

Johnson & Johnson

JNJ

Current price

$185.99

Its diversified business across pharmaceuticals, medical devices, and consumer health creates a resilient revenue stream impervious to market shocks.

Waste Management, Inc.

Current price

$217.67

Its waste disposal and recycling services are essential for communities and businesses, generating highly predictable, recurring revenue streams.

Coca-Cola Company, The

Current price

$66.00

NextEra Energy, Inc.

NEE

Current price

$77.85

Pepsico, Inc.

PEP

Current price

$141.76

Join Nemo FREE today and unlock every stock.

It only takes 60 seconds.

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

≈

In 12 months it might be worth:

$1,000.00

+10.25%

≈

About This Group of Stocks

Our Expert Thinking

This portfolio focuses on defensive companies that provide essential products and services with predictable demand. Think household necessities, utilities, healthcare, and food—things people need regardless of economic ups and downs, creating stable performance even when markets get rocky.

What You Need to Know

These stocks are known for financial stability, consistent earnings, and often regular dividend payments. They typically don't deliver explosive growth during booming markets but offer valuable protection during downturns—making them excellent portfolio stabilizers during uncertain times.

Why These Stocks

Each company was carefully selected for its strong market position in non-cyclical industries, proven track record through economic changes, and robust balance sheet. These blue-chip businesses have demonstrated the resilience to weather economic storms while maintaining essential operations and financial health.

Group Performance Snapshot

10.27%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 10.27% over the next year.

9 of 15

Stocks Rated Buy by Analysts

9 of 15 assets in this group are rated Buy by professional analysts.

0.5%

Group Growth

This group averaged a 0.5% return last month.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🛡️

Safe Harbor in Stormy Markets

These companies have historically demonstrated resilience during market volatility. When uncertainty rises, investors often flock to these essential businesses for their stability and predictable cash flows.

💵

Steady Income Potential

Many stocks in this group have impressive track records of paying consistent dividends. These regular payments can provide valuable income streams, especially important during periods of economic uncertainty.

🔮

Ready for Rate Changes

With current economic conditions and shifting interest rate policies, defensive stocks like these tend to experience less dramatic price swings compared to high-growth companies, potentially preserving your capital.

Get the full story on this Basket. Read our detailed article on its risks and potential.

Read Full Insight

Why Invest with Nemo Money?

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

Discover More Opportunities

Gold Miners (Record High Rally) Investment Guide

Gold prices have reached a record high as concerns over a U.S. government shutdown and potential interest rate cuts drive investors to seek safe-haven assets. This trend creates a potential investment opportunity in the companies that explore for and produce gold and other precious metals.

Government Shutdown Impact: Defensive Stocks Explained

A U.S. government shutdown has been triggered by a congressional budget impasse, creating economic uncertainty. This theme focuses on companies in defensive sectors that may prove resilient to the resulting market volatility and disruptions in federal spending.

Zillow Redfin Competitors | Market Disruption

The Federal Trade Commission is suing Zillow and Redfin, alleging their rental listing deal violates antitrust laws. This legal challenge could disrupt the online real estate market, creating opportunities for competing platforms to capture market share.

Frequently Asked Questions

Everything you need to know about the product and billing.