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10 Best Defensive Stocks to Buy in a Volatile Market

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In this article, we will look at the 10 Best Defensive Stocks to Buy in a Volatile Market.

Investor positioning in defensive stock is at its lowest level it has ever been since 2000. The decline is in stark contrast to the trade policy turmoil and economic uncertainty triggered by the US tariff war. Amid the disparity, Bank of America strategists, led by Michael Hartnett, insist it is high time for investors to become defensive.

Sharing similar sentiments is Trivariate Research founder Adam Parker, who insists investors should look to play defense with equity markets at all-time highs amid heightened volatility. According to Parker, investors should consider purchasing certain dividend stocks to generate passive income.

“We think companies with consistent dividend growth are likely to provide strong defense if there’s a growth scare. We think companies with consistent dividend growth are likely to provide strong defense if there’s a growth scare,” Parker wrote,” Parker wrote.

While the prospects of a bear market are still low, KGI securities warn that there could be a significant earnings decrease in the third quarter. Consequently the research firm insists investors should focus on defensive and high-quality stocks that are less sensitive to economic fluctuations. Consumer defensive stocks stand out because they provide goods and services that consumers cannot live without regardless of the prevailing economic situation.

With that in mind, let’s look at the 10 Best Defensive Stocks to Buy in a Volatile Market.

A portfolio manager analyzing a stock chart, seeking to find the right investments.

Our Methodology

To create our list of the 10 Best Defensive Stocks to Buy in a Volatile Market, we began by screening U.S.-listed companies with market capitalizations exceeding $2 billion, focusing on key defensive sectors such as consumer staples, healthcare, utilities, telecom, real estate, and pharmaceuticals. We then applied three key filters: a beta below 1, consistent EPS growth over the past three years and projected next year, and a dividend yield above 1%. Finally, we identified the most favored stocks among elite hedge funds and ranked them by the number of funds holding positions.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

10. Diageo plc (NYSE:DEO)

Beta as of July 8: 0.28

Dividend Yield as of July 8: 4.10%

Number of Hedge Fund Holders: 39

Diageo PLC (NYSE:DEO) is one of the 10 best defensive stocks to buy in a volatile market. On June 30, the company’s Casamigos brand unveiled its first-ever ready-to-drink (RTD) margarita variety pack. Casamigos Margaritas is the new non-carbonated cocktail made with tequila, natural flavors, and real juice.

Casamigos Margaritas paves the way for Diageo to expand its footprint into the high-growth RTD tequila market. The RTD segment is experiencing double-digit growth as tequila-based options remain in strong demand.

The new brand will expand the company’s premium portfolio, enabling it to capitalize on several converging trends.

“Tequila-based ready-to-drink cocktails are driving the next wave of growth in the category, and consumers are looking for trusted brands that deliver both quality and convenience,” said Jamie Young, VP of Ready to Drink and Ready to Serve at Diageo. “With Casamigos Margaritas, we’re bringing a premium experience into the can—backed by the cultural credibility that set this brand apart.”

Diageo PLC (NYSE:DEO) engages in the production, marketing, and sale of alcoholic beverages. It offers scotch, gin, vodka, rum, raki, liqueur, wine, tequila, and Chinese white spirits, among others.

9. The Hershey Company (NYSE:HSY)

Beta as of July 8: 0.28

Dividend Yield as of July 8: 3.30%

Number of Hedge Fund Holders: 40

The Hershey Company (NYSE:HSY) is one of the 10 best defensive stocks to buy in a volatile market. On June 30, the company confirmed it will remove synthetic dyes from all its snacks by the end of 2027. The decision will allow the company to align with directives by US health authorities.

US Health Secretary Robert F. Kennedy Jr. and FDA Commissioner Marty Makary have already rolled out directives requiring companies to remove synthetic food dyes from the food supply chain. The directive is part of the ministry’s push to address health conditions such as ADHD, obesity, and diabetes.

Some of Hershey’s brands that will be affected by the directive include Dot’s Homestyle Pretzels, SKINNYPOP popcorn, and FULFIL protein bars. Other companies, including Tyson Foods and Conagra Brands, have also started reformulating their brands by removing artificial colors.

The Hershey Company (NYSE:HSY) engages in the manufacture and sale of confectionery products and pantry items.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!