what is a defensive stock 
a defensive stock provides consistent dividends and stable earnings regardless of the overall state of the stock market there s a constant demand for these companies products so they tend to be more stable during the various phases of the business cycle defensive stocks shouldn t be confused with defense stocks which are the stocks of companies that manufacture things like weapons ammunition and fighter jets understanding defensive stocksinvestors who seek to protect their portfolios during a weakening economy or periods of high volatility may increase their exposure to defensive stocks well established companies such as procter gamble pg johnson johnson jnj philip morris international pm and coca cola ko are considered to be defensive stocks these companies have strong cash flows and stable operations with the ability to weather weakening economic conditions they also pay dividends and this can have the effect of cushioning a stock s price during a market decline defensive stocks are less likely to face bankruptcy because of their relative strength during downturns 