In this article, we will take a detailed look at the 11 Defensive Stocks Billionaires are buying amid US Trade Tariff Uncertainty.
Usually, anxiety triggered by geopolitical tensions, monetary policy uncertainties, trade wars, and tariffs would be enough to prompt investors to adopt defensive strategies in the markets. Yet that has not been the case, as major US equities have surged to record highs, resulting in valuations becoming excessive.
Defensive stocks, which are often considered safe havens in times of uncertainty, have been relegated to the sidelines. According to Todd Sohn of Strategas Asset Management, the influence of the defensive sector on major indices is at a 35-year low.
For Matt Maley, Chief Market Strategist at Miller Tabak + Co., investors are essentially playing with fire by shunning defensive stocks, given the ever-unending uncertainties and fluid situation.
“The war may or may not get worse, but given that any upside potential for stocks is limited due to extended valuations, investors should be taking more precautions,” Maley said.
The Wells Fargo Investment Institute is advising investors to increase their exposure to defensive stocks, given the uncertainty surrounding tariffs that is expected to persist into year-end. The utility sector remains a top pick for Wells Fargo Strategists, as it is well-positioned to benefit from the build-out in artificial intelligence. In addition, utilities will always act as a hedge against market volatility and economic risks, as they are shielded from tariffs.
Our Methodology
We used the Finviz stock screener to compile a list of 30 top defensive stocks with positive year-to-date returns of over 10%, as of July 29. We then picked the 11 stocks that were the most popular among billionaire investors, as of Q4 2024, using Insider Monkey’s database of billionaire holdings. Additionally, we have mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q1 2025 database of over 1,000 elite hedge funds. Finally, we ranked the stocks in ascending order of their year-to-date returns.
Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating 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).
Defensive Stocks Billionaires are buying amid US Trade Tariff Uncertainty
11. The Coca-Cola Company (NYSE:KO)
Year to Date Returns as of July 29: 10.11%
Number of billionaires: 16
Number of Hedge Fund Holders: 87
The Coca-Cola Company (NYSE:KO) is one of the defensive stocks that billionaires are buying amid US trade tariff uncertainty. On July 22, analysts at CFRA reiterated a ‘Buy’ rating and an $80 price target on the stock. The positive stance comes from the company delivering solid second-quarter results that topped analyst estimates.
The beverage giant posted adjusted earnings per share of $0.87, representing a 4% year-over-year increase. It also topped consensus estimates of $0.84. The better-than-expected earnings were driven by solid gross margins that expanded to 62.4%.
The Coca-Cola Company (NYSE:KO) also recorded a 1.4% year-over-year increase in sales to $12.54 billion. The sales increase was driven by a positive price mix, which contributed to a 65% sales growth, offsetting the impact of currency headwinds. Coca-Cola also raised its full-year adjusted earnings per share to $3.04 from $3 for 2025 and to $3.20 from $3.15 for 2026.
The CFRA Buy rating is in response to the company’s global brand value, which is diminishing due to currency headwinds, and confidence in dividend aristocrat trends.
The Coca-Cola Company (NYSE:KO) is a global beverage company that manufactures, markets, and sells beverage concentrates and syrups, as well as finished beverages. Its products include a wide range of sparkling soft drinks, waters, juices, value-added dairy, and plant-based beverages.
10. Altria Group, Inc. (NYSE:MO)
Year to Date Returns as of July 29: 12.05%
Number of billionaires: 11
Number of Hedge Fund Holders: 49
Altria Group, Inc. (NYSE:MO) is one of the defensive stocks that billionaires are buying amid US trade tariff uncertainty. On July 23, Altria Group announced an extension of its $3.0 billion five-year revolving credit agreement, shifting the expiration date from October 2028 to October 2029. The deal, originally signed in October 2023, involves JPMorgan Chase and Citibank as administrative agents. All other terms remain unchanged.
Altria continues to maintain a strong financial position, offering a robust 6.83% dividend yield and making payouts for 55 consecutive years. The involved lenders already provide Altria with financial services, including investment banking, trust operations, and cash management.
Altria Group, Inc. (NYSE:MO) is a leading American tobacco company known for producing and marketing cigarettes and related products worldwide, while also expanding into innovative nicotine alternatives like electronic vaping devices and oral nicotine pouches as part of its strategy to diversify its portfolio and adapt to shifting consumer preferences.
9. Abbott Laboratories (NYSE:ABT)
Year to Date Returns as of July 23: 12.25%
Number of billionaires: 11
Number of Hedge Fund Holders: 70
Abbott Laboratories (NYSE:ABT) is one of the defensive stocks that billionaires are buying amid US trade tariff uncertainty. On July 21, UBS reiterated a ‘Buy’ rating and a $148 price target on the stock. The bullish stance comes on the heels of the stock coming under pressure following the release of lower fiscal year 2025 sales guidance.
The biopharmaceutical company is facing weakness in its diagnostic segment. However, the weakness has not altered UBS’s positive stance on the company. That’s because the company is experiencing robust growth, with its MedTech division recording 12.2% organic growth in the second quarter, higher than the consensus estimate of 11.2%.
In addition, UBS is buoyed by Abbott’s 6.9% organic sales growth or 7.5% on excluding COVID diagnostics. The research firm expects robust growth in other segments, including the MedTech pipeline, to offset weakness in the diagnostic segment.
Abbott Laboratories (NYSE:ABT) is a global healthcare company focused on creating life-changing technologies and products that span diagnostics, medical devices, nutrition, and branded generic pharmaceuticals. It is focused on improving health and well-being across all stages of life through innovative solutions and a commitment to accessibility.
8. The Kroger Co. (NYSE:KR)
Year to Date Returns as of July 29: 14.90%
Number of billionaires: 14
Number of Hedge Fund Holders: 64
The Kroger Co. (NYSE:KR) is one of the defensive stocks that billionaires are buying amid US trade tariff uncertainty. On July 22, The Kroger Co. (NYSE:KR) announced that George Vincent will become secretary and general counsel starting August 4, succeeding Christine Wheatley, who retires on September 1 after a 16-year tenure. Vincent previously led Dinsmore & Shohl as managing partner, guiding its expansion and overseeing more than 750 lawyers across 35 states.
Vincent brings over two decades of legal expertise, advising major corporations on strategic growth and earning recognition from top legal publications. Beyond law, he’s chaired several regional institutions including The Christ Hospital and Cincinnati Museum Center. He holds degrees from the University of Michigan and its law school.
The Kroger Co. (NYSE:KR) is a leading American retail chain operating more than 2,700 supermarkets and multi-department stores across 35 states. Known for its vast reach and diverse offerings, it serves millions of customers daily throughout the United States.
7. The Southern Company (NYSE:SO)
Year to Date Returns as of July 29: 14.90%
Number of billionaires: 12
Number of Hedge Fund Holders: 55
The Southern Company (NYSE:SO) is one of the defensive stocks that billionaires are buying amid US trade tariff uncertainty. On July 22, analysts at BMO Capital reiterated an ‘Outperform’ rating on the stock and increased the price target to $102 from $98. The positive stance stems from the company delivering a robust 19.7% return over the past year.
Similarly, BMO Capital expects the company to deliver solid second-quarter results characterized by earnings of $0.87 a share. The research firm also expects Southern Co to refresh its capital and financing plans.
The Buy rating also comes with expectations that Southern Co.’s calendar is largely de-risked following the approval of an alternative rate plan and an Integrated Resource Plan for Georgia Power. The remarks follow the company’s announcement of a quarterly dividend of 74 cents per share.
The Southern Company (NYSE:SO) is an energy provider that generates and distributes electricity and natural gas. It serves millions of customers through various operating companies and also engages in wholesale electricity sales.
6. Mondelez International, Inc. (NASDAQ:MDLZ)
Year to Date Returns as of July 29: 16.94%
Number of billionaires: 12
Number of Hedge Fund Holders: 52
Mondelez International, Inc. (NASDAQ:MDLZ) is one of the defensive stocks that billionaires are buying amid US trade tariff uncertainty. On July 8, the company announced a voluntary recall of RITZ Peanut Butter Cracker Sandwich products.
The recall is in response to incorrect labeling that poses risks to customers with peanut allergies and will affect four carton sizes of RITZ products sold nationwide. The mislabeling of inner packages could present serious health risks to individuals with peanut allergies.
It is recommended that consumers who are allergic to peanuts avoid consuming the impacted products and dispose of them. The recall does not apply to products that are not on the list, such as cartons that contain RITZ Cheese Cracker Sandwiches or those with other plant codes or expiration dates.
Mondelez International, Inc. (NASDAQ:MDLZ) is a multinational confectionery, food, and beverage company. The company produces and sells a variety of snacks, including biscuits, chocolate, gum, candy, and powdered beverages.
5. American Electric Power Company, Inc. (NASDAQ:AEP)
Year to Date Returns as of July 29: 17.41%
Number of billionaires: 13
Number of Hedge Fund Holders: 55
American Electric Power Company, Inc. (NASDAQ:AEP) is one of the defensive stocks that billionaires are buying amid US trade tariff uncertainty. On July 22, the company’s board of directors approved a regular quarterly dividend of $0.93 per share.
The dividend is payable on September 10, 2025, to shareholders of record as of August 8, 2025. The dividend offering represents a yield of 3.43%. Its payment will mark 461 consecutive quarterly cash dividends, affirming American Electric Power’s commitment to returning value to shareholders.
The quarterly dividend comes on the heels of the company announcing plans to invest $54 billion through 2029 to enhance customer service. The investment will also be used to support the company’s efforts to meet growing customer energy needs.
American Electric Power Company, Inc. (NASDAQ:AEP) operates one of the nation’s largest electric transmission networks. Its system comprises 40,000 line miles and over 225,000 miles of distribution lines. It provides power to over 5.6 million customers across 11 states.
4. 3M Company (NYSE:MMM)
Year to Date Returns as of July 29: 17.41%
Number of billionaires: 17
Number of Hedge Fund Holders: 69
3M Company (NYSE:MMM) is one of the defensive stocks billionaires are buying amid US trade tariff uncertainty. On July 21, UBS reiterated a ‘Buy’ rating on the stock and a $184 price target. The positive stance stems from the company delivering better-than-expected second-quarter results, as it also increased its full-year earnings per share guidance.
The research firm noted organic growth exceeded expectations, resulting in a 4% operating profit beat and a 7% earnings per share beat in the quarter. Sales in the quarter totaled $6.2 billion at the back of 1.5% year-over-year organic growth. Adjusted EPS was up 12% year-over-year to $2.16 a share.
UBS expects organic growth rates to improve in the second half of the year for 3M’s largest businesses, as the new management continues to operate efficiently. The remarks come on the company raising its full year guidance to $7.88 a share at the midpoint of its previous guidance of $7.75 and slightly above consensus estimates of $7.66.
3M Company (NYSE:MMM) is a diversified technology services company that offers industrial abrasives and finishing for metalworking applications. Its products are used in various sectors including healthcare, industrial, consumer, and transportation.
3. The Estée Lauder Companies Inc. (NYSE:EL)
Year to Date Returns as of July 29: 26.13%
Number of billionaires: 12
Number of Hedge Fund Holders: 49
The Estée Lauder Companies Inc. (NYSE:EL) is one of the defensive stocks billionaires are buying amid US trade tariff uncertainty. On July 25, Morgan Stanley upgraded Estée Lauder to “Overweight” and added the cosmetics giant to its Positive Catalyst Watch, anticipating strong fourth-quarter results on August 20.
Analysts cited robust online performance, better-than-expected results from China’s 6.18 shopping event, and a potential global like-for-like sales uptick in December 2025.
The firm highlighted operational improvements, margin expansion, and upcoming cost savings from Estée Lauder’s Profit Recovery and Growth Plan, expected to boost earnings by fiscal 2027. The recent appointment of Aude Gandon as Chief Digital and Marketing Officer further supports its digital growth strategy, with projected EPS reaching $3.41 in FY27.
The Estée Lauder Companies Inc. (NYSE:EL) is a leading American multinational specializing in the creation and distribution of premium beauty products—from makeup and skincare to fragrances and hair care. Operating across more than 150 countries, the company boasts a diverse portfolio of iconic brands, including Estée Lauder, Clinique, and Aramis, each contributing to its reputation for innovation, luxury, and global reach.
2. Philip Morris International Inc. (NYSE:PM)
Year to Date Returns as of July 29: 30.85%
Number of billionaires: 22
Number of Hedge Fund Holders: 104
Philip Morris International Inc. (NYSE:PM) is one of the defensive stocks billionaires are buying amid US trade tariff uncertainty. On July 22, the company delivered mixed second-quarter results. While sales increased 7.1% year over year to $10.14 billion, they fell short of analysts’ estimates of $10.33 billion. Adjusted profit came in at $1.95 per share, beating market estimates of $1.86 per share.
The disappointing sales number came as Philip Morris ramped up its transition from traditional tobacco products to smoking alternatives such as ZYN. During the quarter, the company shipped 190 million ZYN cans, falling short of consensus estimates of 203 million ZYN cans.
Philip Morris International Inc. (NYSE:PM) is trying to position ZYN as a dominant brand much like the Marlboro label. In addition to ZYN, PMI is also experiencing steady growth in its inhalable nicotine products, led by its heated tobacco device, IQOS. It aims to generate two-thirds of net revenues from smoking alternatives by 2030.
Buoyed by its second-quarter results, PMI raised its full-year adjusted profit target to between $7.43 and $7.56, up from the previous guidance of between $7.36 and $7.49.
Philip Morris International Inc. (NYSE:PM) is a leading tobacco company that is actively transitioning towards a smoke-free future. It focuses on developing and commercializing smoke-free alternatives to cigarettes, including heated tobacco products, e-vapor products, and oral smokeless products, with the goal of completely replacing cigarettes.
1. Dollar Tree, Inc. (NASDAQ:DLTR)
Year to Date Returns as of July 29: 49.55%
Number of billionaires: 11
Number of Hedge Fund Holders: 67
Dollar Tree, Inc. (NASDAQ:DLTR) is one of the defensive stocks that billionaires are buying amid US trade tariff uncertainty. On July 28, Guggenheim raised its price target on Dollar Tree (NASDAQ:DLTR) from $100 to $130, while reaffirming its Buy rating.
The upgrade reflects optimism around the company’s performance, including tariff relief, the successful Family Dollar divestiture, and the strength of its multi-price point (MPP) strategy, which has delivered consistent 5–7% sales growth.
The firm also highlighted operational improvements and projected 10% EBITDA growth, noting that the removal of $225 million in one-off P&L impacts should boost 2026 earnings. Guggenheim believes Dollar Tree could climb to $150 if favorable multiples persist.
Dollar Tree, Inc. (NASDAQ:DLTR) is a U.S.-based retail chain that offers a broad range of budget-friendly products across various price levels, including everyday essentials like food, household supplies, and personal care items, along with seasonal goods. With 24 distribution centers supporting its operations, the company primarily serves value-conscious shoppers seeking affordability without compromising convenience.
While we acknowledge the potential of DLTR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DLTR and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 11 Best 52-Week High Stocks to Buy Now and 10 Best Biotech Stocks to Buy According to Billionaire Steve Cohen.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.
