3 Defensive Stock Alternatives to Bonds If Interest Rates Drop

Group 1: Colgate-Palmolive Co. (CL) - Colgate-Palmolive reported a net sales increase of 4.9% and a diluted EPS surge of 48% in the latest quarter, with profit margin growing by 280 basis points [2][4] - The company has a strong dividend history, with a 62-year track record of increasing dividends and a 3-year annualized dividend growth of nearly 3% [4] - Full-year net sales growth is expected to be between 2% and 5%, with double-digit EPS growth and continued gross profit margin expansion forecasted [3][4] Group 2: PG&E Corp. (PCG) - PG&E has a market capitalization of approximately $57 billion and is a major player in the California utilities market, with nearly 9% earnings growth forecasted for the upcoming report [5][7] - The stock has increased by 16% over the past year, reflecting its operational growth despite facing backlash for recent price hikes approved by the California Public Utilities Commission [5][7] - The regulatory landscape for utilities could change significantly depending on the outcome of the upcoming November election, which may impact PG&E's operations [7] Group 3: Sysco Corp. (SYY) - Sysco has a forward P/E ratio of 16.7, lower than many competitors, and boasts a return on equity exceeding 102%, indicating efficient returns relative to shareholder equity [8][9] - The stock has risen by 10% in the last year, with analysts projecting at least another 10% upside potential based on an average price target of $85.27, supported by an earnings beat and projected 8% earnings growth [9] - Sysco has a 56-year trend of increasing dividends, which is expected to continue due to improved cash flows [9]