Top 3 Defensive Stocks for 2019 - Defensive Dividend Investments for 2019

TL;DR

This video discusses three defensive stocks that have the potential for a good performance in 2019 if the market continues to decline.

Transcript

Hey YouTube. I'm Jimmy in this video I'm going to go through my top three defensive stocks that could have a good 2019 especially if the market keeps going down. So to make this list I looked for companies that had a decent dividend yield. They had defensive characteristics in that investors seemed to like investing in them when the market goes dow... Read More

Key Insights

• 🌱 American Waterworks (AWK) has a dividend yield of 2% and plans for earnings growth, making it an attractive option.
• ❓ Community Health Care Trust (CHCT) combines healthcare and real estate, providing a defensive investment choice.
• 👨‍💼 Pepsi (PEP) with a dividend yield of 3.5%, has historically performed well during economic downturns due to its business in beverages and snacks.
• ☠️ Long-term rates coming down could benefit CHCT's real estate aspect.
• 😘 Pepsi's forward PE is lower than that of Coke and its dividend yield is attractive.
• 🥹 Holding onto high dividend positions during market recoveries can be beneficial.
• 💪 It is important to assess portfolios and determine which companies are fundamentally strong.

Questions & Answers

Q: Why is American Waterworks considered a defensive stock?

American Waterworks has showcased stability during market downfalls and is known for its consistent dividend yield. Additionally, recent acquisitions and plans for earnings growth make it an attractive defensive investment option.

Q: What makes Community Health Care Trust a strong defensive stock?

Community Health Care Trust's involvement in healthcare and real estate makes it a solid defensive stock choice. The revenue generated from leased properties to hospitals and healthcare systems is likely to remain steady, while the potential for lower long-term rates can benefit its real estate aspect.

Q: Why is Pepsi considered a good defensive stock?

Pepsi's business in beverages and snacks is known for performing well during economic downturns. This industry typically experiences consistent demand, making it a reliable defensive investment. Additionally, Pepsi's lower forward PE and competitive dividend yield contribute to its appeal.

Q: What factors should investors consider when deciding whether to wait out a market downturn or make new investments?

It is important to evaluate the fundamentals of companies and focus on high dividend stocks. These types of stocks historically come out stronger after market recoveries. Speculative plays may be more vulnerable during downturns, so investors should weigh the risks and benefits before making any decisions.

Summary & Key Takeaways

• American Waterworks (AWK): AWK has a dividend yield of 2% and has shown stability amidst market fluctuations. Recent acquisitions and plans for earnings growth make it an attractive option.

• Community Health Care Trust (CHCT): CHCT is a healthcare real estate investment trust with a dividend yield of 5.5%. The combination of healthcare and real estate makes it an appealing defensive investment.

• Pepsi (PEP): With a dividend yield of 3.5%, Pepsi's business in beverages and snacks has historically performed well during economic downturns.