Investors are nervous. That's what the CBOE S&P 500 Volatility index says anyway. Also more colloquially called "the fear gauge," it's back within sight of a multi-month peak hit earlier this month. All too often, once it reaches this point, it ends up soaring in conjunction with a full-blown market correction. That doesn't mean you need to get out of the market altogether, though. In fact, this sort of weakness can actually be bullish for defensive names built to hold up even when other stocks can't. He ...

The Middle East conflict has severely disrupted global energy markets, with Iran choking off the Strait of Hormuz. Crude prices have jumped in response – and the State Street SPDR S&P Oil & Gas Exploration & Production ETF (XOP) is among recent top-performing ETFs, notes Neena Mishra, director of ETF Research at Zacks Investment Research. To get your FREE copy of the complete MoneyShow 2026 Top Picks Report, click here. Brent crude is trading near $100 per barrel, up roughly 50% since the start of the wa ...

Core Viewpoint - Utilities are experiencing success as investors are increasingly attracted to defensive, hard-asset stocks [1] Group 1 - The trend indicates a shift in investor preference towards sectors that provide stability and tangible assets [1]

Group 1: Market Overview - Equity markets have experienced volatility this year, with concerns about potential downturns due to geopolitical tensions and tariff-related uncertainties [1] - Historical trends indicate that significant long-term investment opportunities often arise during periods of high uncertainty [1] Group 2: Investment Opportunities - The focus should be on identifying high-quality companies with resilient business models capable of enduring economic slowdowns [2] - AbbVie and Microsoft are highlighted as excellent examples of such companies [3] Group 3: AbbVie - AbbVie is a pharmaceutical leader with a diverse portfolio across various therapeutic areas, ensuring consistent revenue and earnings [4] - Demand for AbbVie's therapies, particularly for chronic autoimmune conditions and cancer, tends to remain stable even during economic challenges, making it a defensive stock [4][5] - AbbVie has a robust pipeline for developing new products, which helps mitigate risks associated with patent expirations [6] - AbbVie is recognized as a Dividend King, having increased its dividend payouts for over 50 consecutive years, which is crucial during market downturns [6][7] Group 4: Microsoft - Microsoft operates in a cyclical industry but is considered one of the more defensive tech stocks due to its entrenched products in daily life [8] - The company generates consistent and predictable revenue from its office suite, which is likely to remain stable even in recessionary periods [8]

Core Viewpoint - iREIT+HOYA Capital is positioned as a leading income-focused investment service, emphasizing sustainable portfolio income, diversification, and inflation hedging [1][2]. Group 1: Investment Focus - The service targets income-producing asset classes, including REITs, ETFs, closed-end funds, preferred stocks, and dividend champions [2]. - It aims to provide high-yield, dividend growth investment ideas, with portfolios targeting dividend yields up to 10% [2]. Group 2: Experience and Expertise - The team behind iREIT+HOYA Capital has over 14 years of investment experience and an MBA in Finance, focusing on defensive stocks with a medium- to long-term investment horizon [2]. - The group offers research and insights to help investors achieve dependable monthly income and portfolio diversification [2].

Core Insights - Gold prices remain steady above $5,000 per ounce amid geopolitical and economic risks, with predictions of potential increases to $6,000 due to a weaker dollar [1] - Consumer staples are highlighted as a defensive sector that can protect capital during market volatility, offering steady dividend income and reliable revenue [1] Consumer Staples Sector - Consumer staples are considered a 'safe' sector as they sell essential goods, leading to predictable revenue streams [1] - These companies typically have steady dividend income, reliable earnings, and the ability to pass on rising costs to consumers [1] - Low beta characteristics of consumer staples stocks make them less volatile compared to the broader market, appealing to institutional investors during turbulent times [1] Featured Consumer Staples Stocks 1. Waste Management - Waste Management Inc. has a near-monopoly in many locations due to its extensive landfill network, making it a strong dividend payer with a 52% dividend payout rate and a 22-year history of annual increases [1] - The stock is experiencing a bullish trend, having surpassed the 200-day simple moving average for the first time since last September [1] 2. British American Tobacco - British American Tobacco plc has shifted towards smokeless products, maintaining a dividend yield of over 5% with a 63% dividend payout ratio [1] - The stock has returned nearly 60% in the last 12 months and shows potential for further gains following a period of consolidation [1] 3. Service Corporation International - Service Corporation International Inc. is the largest provider of funeral and cemetery services in North America, benefiting from an aging population [1] - The company has a dividend yield of 1.68% with a 36.7% payout ratio, and it has raised its dividend for 15 consecutive years [1] - The company raised its 2025 cash flow guidance to between $915 million and $950 million, supporting future payout increases [2]

Core Viewpoint - Defensive stocks are characterized by companies in sectors that provide essential goods and services, maintaining constant demand regardless of popularity trends [1] Group 1 - Defensive stocks are defined as stocks in companies that supply goods and services that are always in demand [1] - These stocks do not follow trends of popularity, indicating their stability in various market conditions [1]

Core Viewpoint - As the stock market approaches all-time highs, investors are looking for defensive options, with Coca-Cola and Pepsi being prime candidates due to their consistent performance during market corrections [1] Company Performance - Coca-Cola's return on invested capital (ROIC) is 18%, showing a positive trend towards 20% or higher, while Pepsi's ROIC is at 14%, indicating a decline in recent quarters [3][4] - Coca-Cola's fiscal 2025 earnings per share (EPS) rose 3% to $2.98, with a projected 8% increase to $3.22 for FY26, alongside a sales increase of 3% for FY25 and a projected 5% increase to $51.01 billion for FY26 [6] - Pepsi's FY25 EPS is expected to slightly dip to $8.12 but is projected to rebound by 5% to $8.55 in FY26, with sales expected to rise 2% for FY25 and 4% to $97.07 billion in FY26 [9] Valuation and Dividend Analysis - Pepsi trades at 16 times forward earnings and near 2 times forward sales, aligning with industry averages, while Coca-Cola trades at a premium of 6 times forward sales [10] - Coca-Cola offers a 3% annual dividend yield, matching the industry average, while Pepsi has a higher yield of 4%, with both companies classified as "Dividend Kings" for increasing dividends for over 50 consecutive years [12] Investment Outlook - As 2026 begins, Pepsi appears to meet more investor criteria despite Coca-Cola's stronger ROIC, with Coca-Cola potentially facing short-term weakness due to its higher valuation compared to Pepsi and its beverage peers [13]

Economic Overview - The U.S. economy presents a mixed picture with consumer activity remaining intact but shifting towards necessities rather than discretionary spending [2] - Businesses are operating under tighter margins and selective demand, creating a functional yet vulnerable economy [2] Market Sentiment - Investors are becoming more cautious as expectations for 2026 are tempered due to slower economic momentum and rising uncertainty around corporate earnings [1][3] - The market may experience increased volatility as growth becomes less predictable and earnings visibility narrows [3] Defensive Stocks - Defensive stocks are expected to perform better during uncertain periods as they cater to everyday needs, providing more predictable revenues compared to cyclical businesses [4] - These stocks can help reduce portfolio volatility while still allowing for long-term market participation [5] Company Analysis: Turning Point Brands, Inc. (TPB) - TPB has seen a 40% increase in share price over the past year, benefiting from stable consumer demand in habitual consumption categories [6] - The company is focused on maintaining brand strength while evolving its portfolio to align with consumer preferences, including expanding into modern oral nicotine products [7] - The Zacks Consensus Estimate for TPB's EPS suggests growth of 50.6% for the current fiscal year and 7.1% for the next [8] Company Analysis: Johnson & Johnson (JNJ) - JNJ benefits from steady non-discretionary healthcare demand and a diversified portfolio in pharmaceuticals and medical technologies [11] - The company emphasizes disciplined innovation, advancing its pharmaceutical pipeline and enhancing its medical technology offerings [12] - The Zacks Consensus Estimate for JNJ's EPS indicates growth of 8.9% for the current fiscal year and nearly 5.7% for the next [13] Company Analysis: NextEra Energy, Inc. (NEE) - NEE has risen 12.1% in the past year, providing essential electricity services that support predictable operations and earnings visibility [14] - The company is positioned to benefit from long-term energy infrastructure demand driven by population growth and electrification trends [15] - The Zacks Consensus Estimate for NEE's EPS suggests growth of 7.6% for the current fiscal year and 7.8% for the next [16] Conclusion - As uncertainty increases approaching 2026, investors may prefer companies like TPB, JNJ, and NEE that offer stability through essential products and services while continuing to invest in growth initiatives [17]

Core Viewpoint - The focus is on gradually increasing positions in defensive stocks that offer decent dividends, reflecting a strategy aimed at seeking relatively safe investments in an unpredictable market [1] Group 1 - The strategy involves looking for investments that are considered safe, particularly in the context of market unpredictability [1] - There is an emphasis on defensive stocks, which are typically less volatile and provide consistent dividends [1]