High Yield Defensive Stocks

Thrugelmir

MPN said:

I have M&G and Vodafone on my radar. 

Vodafone announced a while back they intended to rebase their dividend. 

MaxiRobriguez

MPN said:

I have M&G and Vodafone on my radar. 

M&G is one of my biggest investments but I would not consider it a defensive stock. It lost 50% this year in peak-to-trough (which is part of the reason I filled my boots) and is still 25% down from it's peak. That's not a defensive stock.

MaxiRobriguez

Some reasonable suggestions thus far though about possible options. I like (and own) GSK and NG is on my radar too. The supermarkets are solidly in the defensive bracket, so too the consumer brands stocks like Unilever and RB, albeit with lower yields. Energy stocks like SSE may fit the defensive bill too.

EdGasketTheSecond

Also have a look at APF (Anglo Pacific Group), a mining royalty company with 8.5% yield and hopefully some capital gain to come after recent share buy-back.

DiggerUK

Defensive is as defensive duz. I see no clear idea of what anybody here is claiming they are wanting to defend against, so why use the term.
If you are looking for investments that are not going to go tits up, what do you suggest are the conditions that would lead to which sectors that would be affected so.
If you are looking to maintain income, what dangers are you worried about that would damage that income.
If you are just worried that the value of what you have may go down and you may not get back all you invested, then why are you worried.

It's becoming a non question, meaning this thread has neither substance nor sense and ensuring it has no purpose, because nobody knows what to look for, because nobody is describing the danger they may need to defend against.

It may  as well be asked if insuring against unicorns damaging the shrubbery is a good idea..._

EdGasketTheSecond

Most respondents seem to get the idea of what the OP means by defensive. It is a common term used for a certain class of shares.

Linton

DiggerUK said:

Defensive is as defensive duz. I see no clear idea of what anybody here is claiming they are wanting to defend against, so why use the term.
If you are looking for investments that are not going to go tits up, what do you suggest are the conditions that would lead to which sectors that would be affected so.
If you are looking to maintain income, what dangers are you worried about that would damage that income.
If you are just worried that the value of what you have may go down and you may not get back all you invested, then why are you worried.

It's becoming a non question, meaning this thread has neither substance nor sense and ensuring it has no purpose, because nobody knows what to look for, because nobody is describing the danger they may need to defend against.

It may  as well be asked if insuring against unicorns damaging the shrubbery is a good idea..._

"Defensive" is a commonly used investment term for companies whose returns are relatively unaffected by economic booms and busts.  In particular, companies selling the basics that are going to be needed no matter what happens to the wider economy  will not be subject to over-enthusiasism on the part of investors.  For example utilities and household product manufacturers.

The idea is that the slow and steady win the race.  This was the case 20 years ago, but the effect has disappeared since the tech boom.  However circumstances may change again.  A properly balanced portfolio should include these as well as the more exciting growth companies.

Prism

Morningstar class any company in the healthcare, consumer staples and utilities sectors as being defensive though it is more nuanced than that I believe. For example, are Microsoft defensive as they are subscription based nowadays and make money regardless of the economic cycle? How about LSE who also make money during downturns?

Another_Saver

DiggerUK said:

Defensive is as defensive duz. I see no clear idea of what anybody here is claiming they are wanting to defend against, so why use the term.
If you are looking for investments that are not going to go tits up, what do you suggest are the conditions that would lead to which sectors that would be affected so.
If you are looking to maintain income, what dangers are you worried about that would damage that income.
If you are just worried that the value of what you have may go down and you may not get back all you invested, then why are you worried.

It's becoming a non question, meaning this thread has neither substance nor sense and ensuring it has no purpose, because nobody knows what to look for, because nobody is describing the danger they may need to defend against.

It may  as well be asked if insuring against unicorns damaging the shrubbery is a good idea..._

 https://youtu.be/69iB-xy0u4A

DiggerUK

So, a defensive portfolio  is as mystical as a unicorn. No need for complicated portfolios then, just buy defensive.....erh defensive what exactly? 

Enjoy the Unicorn Gymkhana..._