10 ASX Stocks: Defensive Strategies Now

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Post on Nov 07, 2024

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10 ASX Stocks: Defensive Strategies Now

The market's been a bit of a rollercoaster lately, right? It's tough to know what's going to happen next, so it's wise to have some defensive stocks in your portfolio. These companies are less likely to be affected by economic downturns, and they can provide some stability in uncertain times.

But how do you pick the right defensive stocks? It's not just about finding companies that are "safe" - you also want to make sure they're growing, and that their share prices are likely to perform well in the long term.

Here are 10 ASX stocks that could be a good addition to your defensive portfolio, based on their strong track records and robust business models.

1. Telstra (TLS)

This one's a classic. Telstra is Australia's largest telecommunications company, and it's been around for ages. Think of it as the dependable old friend. They've got a massive customer base and a huge infrastructure network, so they're pretty much recession-proof.

2. Wesfarmers (WES)

Wesfarmers is a diversified conglomerate with a portfolio of businesses including Coles supermarkets, Bunnings Warehouse, and Kmart. You'll always need groceries and homewares, right? They've got a broad base of operations and a solid financial position, making them a good choice for defensive investing.

3. Woolworths (WOW)

Another big player in the retail sector, Woolworths is a major player in the grocery game. They've got a lot of brand recognition and are super well-established. They're also making moves in the online space, so they're well-positioned for future growth.

4. Commonwealth Bank (CBA)

The big banks are usually considered pretty safe bets, and CBA is no exception. They're the biggest bank in Australia, and their earnings are pretty steady. They also have a good track record of dividend payments, which is always a bonus for income investors.

5. National Australia Bank (NAB)

Another large bank, NAB has a strong presence in both Australia and New Zealand. They've got a solid reputation and a healthy capital base. They're also investing in new technologies like digital banking, which could help them stay ahead in the future.

6. Sydney Airport (SYD)

This one might seem a bit risky right now, but think about it, people will always need to travel. While COVID-19 has been a major disruption for the travel industry, Sydney Airport has strong long-term fundamentals, and as travel rebounds, their stock price is likely to follow.

7. Transurban (TCL)

Transurban operates toll roads across Australia. You know, those annoying toll booths you have to pay at? These toll roads are pretty much essential infrastructure, so they're not going anywhere. Transurban has a growing network of roads, and they're also expanding into new markets, making them a potentially high-growth defensive stock.

8. AGL Energy (AGL)

AGL is a leading energy company in Australia. Think of them as the people who keep the lights on. They're a major generator of electricity and gas, and they have a strong track record of profitability. They're also making investments in renewable energy, which could make them a good long-term play.

9. Origin Energy (ORG)

Another big player in the energy sector, Origin Energy provides electricity and gas to both businesses and households. They're also investing in renewable energy and new technologies, which could help them stay ahead of the curve.

10. BHP Group (BHP)

BHP is a mining giant, and their business is based on the extraction and sale of natural resources. Think iron ore, copper, and coal. These are commodities that are always in demand, and BHP has a strong track record of performance. They're also investing in new technologies like autonomous mining, which could help them stay ahead of the competition.

It's important to note that these are just suggestions, and you should always do your own research before investing in any company. You should also consider your own risk tolerance and investment goals before making any decisions.

Good luck with your investing!