3 Defensive Stocks for the Value Investor

3 Types of Defensive Stocks to Invest During a Market Crash 2020 | Investing,  Stock market crash, Value investing

If you want to make your portfolio more resilient so that it will be strong enough to cope with recessions, the following three defensive stocks may be suitable. Except for a few short periods over the last decade, these stocks have continued to generate earnings and dividends during economic recessions as they offer goods and services on which people do not typically cut their spending, not even in times of financial distress.

Furthermore, as of the writing of this article, these stocks offer compelling price-earnings ratios compared to the S&P 500’s 35.38, and Wall Street sell-side analysts have issued positive recommendations for them.

Alico Inc

The first stock investors could be interested in is Alico Inc (NASDAQ:ALCO), a Fort Myers, Florida-based operator of agribusinesses and land management companies.

Over the past five years, the trailing 12-month earnings per diluted share ($3.16 as of the end of the most recent full year) was, on average, fairly flat. The trailing 12-month dividend per share ($0.36 as of the end of the most recent full year) increased by 6% every year.

 

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