Defensive stocks are stocks that tend to perform well in times of economic downturn or market volatility. These stocks are often associated with companies that provide essential products or services that are in demand regardless of economic conditions. Examples of defensive stocks include utility companies, healthcare providers, and consumer staples manufacturers.

Defensive stocks are typically considered to be less risky than other types of stocks, such as growth stocks or speculative stocks, because they are less sensitive to economic cycles and market fluctuations. As a result, they are often sought after by investors looking for a stable source of income or a way to diversify their portfolio. However, defensive stocks may also offer lower potential returns compared to other types of stocks, as they are not typically associated with high levels of growth.

Defensive stocks are shares of companies that provide consistent dividends and stable earnings, regardless of the economic cycle. These stocks belong to sectors like utilities, healthcare, consumer staples, and essential services areas that remain in demand even during economic downturns. Unlike cyclical stocks, which are more sensitive to market fluctuations, defensive stocks tend to hold their value better in recessions and volatile markets, offering lower volatility and steady returns. While they may not experience high growth during market booms, they are favoured for their resilience and reliability. Defensive stocks are popular with risk-averse investors seeking stability and income, as these companies generate revenue from products and services people need regularly, like food, electricity, and healthcare, no matter the economic climate.

Defensive stocks are shares in companies that provide essential goods and services that people consistently need, regardless of economic conditions. These companies operate in sectors like utilities, healthcare, consumer staples (e.g., food, beverages, household products), and telecommunications. Defensive stocks are typically less sensitive to economic cycles, making them more resilient during downturns or recessions.

Investors often view defensive stocks as a safer option during market volatility, as demand for essentials remains steady even when consumer spending declines. While they may not deliver high growth like technology or luxury stocks during economic booms, defensive stocks tend to offer stable returns and often pay dividends. This stability makes them attractive to risk-averse investors looking for a way to preserve capital and achieve steady income.