E Four Defensive Stocks To Buy In Case Of A Market Crash

Markets across the world have run up very smartly and are now trading at record levels after the pandemic scare in 2020. The global economy went through an economic depression before stock markets bounced back spectacularly. However, now there is a fear that a stock market crash is just around the corner. Investors are wary about investing into stocks now as no one knows when markets will fall again. It’s time to look at defensive stocks that won’t be too impacted by a crash. If you are searching for such stocks then this list can help you. We are going to discuss four defensive stocks that you can buy in case of a market crash.

  1. NextEra Energy (NEE)

With each passing day, the need for renewable sources of energy is increasing. As concern for the environment is forcing a shift towards clean energy sources, NextEra Energy is perfectly poised to capitalize on that opportunity. The American company has one of the largest renewable energy portfolios in the US and has provided a massive 700% return in the past decade while the S&P 500 Utility Index and S&P 500 have provided returns of 191% and 267% respectively.

Unlike many other business houses that were struggling for survival last year, this star performer with the help of its subsidiary NextEra Energy Partners has completed three organic projects and increased its distribution by 15%. This big leap was possible because of the 40% increase in its cash reserve. Furthermore, by the end of this year, it intends to increase its CAFD by another 12% and is planning to expand its distribution rate by another 12-15% through 2024.

NextEra Energy has all the attributes of a defensive and recession-proof stock. Despite facing headwinds from the coronavirus last year, it successfully grew its earnings by 10.5% along with providing a shareholders return of 30% which is significantly higher than the S&P 500. Though the stock is pretty expensive now but considering its consistent dividend-paying abilities and the capital appreciation it provides, investing in such stocks is always worth it.

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Disclaimer: All the information in this article - is published in good faith and for general information purpose only. Hashtag Investing does not make any warranties about the completeness, ...

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