Defensive stocks are those that are less sensitive to economic cycles and tend to perform well in market downturns. They are often characterized by stable earnings and consistent dividends, making them attractive to investors seeking a reliable source of income.

Examples of defensive stocks include companies in industries such as consumer staples, healthcare, utilities, and telecommunications. These industries provide goods and services that are considered essential, regardless of the state of the economy.

In contrast, growth stocks are those that are expected to outperform the broader market in terms of earnings growth and capital appreciation. They are often found in sectors such as technology, biotech, and e-commerce. Unlike defensive stocks, growth stocks tend to be more volatile and may not offer regular dividends.

While both types of stocks can offer attractive returns, defensive stocks are generally considered to be a safer and more reliable investment option for investors seeking stability and consistency in their portfolio.

Defensive stocks are shares of companies that provide essential goods and services, such as utilities, healthcare, and consumer staples (e.g., food, beverages). Examples include Johnson & Johnson, Procter & Gamble, and Coca-Cola. These companies tend to perform steadily regardless of economic conditions, as people continue to need their products and services even during downturns. Defensive stocks usually offer stable dividends and lower volatility.

In contrast, growth stocks belong to companies expected to grow revenues and earnings at an above-average rate, often in sectors like technology or biotech. Examples include Apple, Amazon, and Tesla. Growth stocks typically reinvest profits to fuel expansion, often paying little or no dividends. They are more volatile and sensitive to market conditions, with higher potential returns but also greater risk than defensive stocks.