5 Defensive Stocks to Buy for a Safe Portfolio Amid Extreme Volatility

Market Overview - U.S. stock markets experienced a significant rally in 2024 following a strong bull run in 2023, but the bull run halted in February 2025 due to market fluctuations [1] - In February, the Dow, S&P 500, and Nasdaq Composite fell by 1.6%, 1.4%, and 4% respectively, with the Nasdaq posting its worst month since April 2024 [1] Economic Impact of Tariffs - Volatility in the markets is attributed to tariff and trade policies from the Trump administration, including a 25% tariff on imports from Canada and Mexico and a 10% tariff on China [4] - Concerns about the impact of these tariffs on the U.S. economy are rising, particularly as inflation remains above the Federal Reserve's target of 2% [5] - Personal spending, a key component of the U.S. economy, unexpectedly fell in January, alongside declines in retail sales and building construction [5][6] Consumer Staples Sector - The consumer staples sector is characterized as mature and fundamentally strong, with demand generally unaffected by economic cycles, making it a defensive investment option [8] - This sector is known for stability in earnings and cash flows, with many companies being regular dividend payers, thus providing portfolio stability during market fluctuations [9] Recommended Consumer Staples Stocks - Tyson Foods Inc. (TSN): Expected revenue growth of 0.9% and earnings growth of 22.6% for the current year, with a dividend yield of 3.23% [14] - Molson Coors Beverage Co. (TAP): Expected revenue growth of 0.3% and earnings growth of 6.5% for the current year, with a dividend yield of 3.07% [17] - Primo Brands Corp. (PRMB): Expected revenue growth of over 100% and earnings growth of 54.5% for the current year, with a dividend yield of 1.34% [20] - Lancaster Colony Corp. (LANC): Expected revenue growth of 3.1% and earnings growth of 6.1% for the current year, with a dividend yield of 2% [23] - Utz Brands Inc. (UTZ): Expected revenue growth of 1.2% and earnings growth of 10.4% for the current year, with a dividend yield of 1.76% [26]