14 Best Defensive Stocks to Invest In Now

7. Emerson Electric Co. (NYSE:EMR)

Emerson Electric Co. (NYSE:EMR) has emerged as a premier defensive stock due to its pure-play transformation into a global automation leader. While many industrial stocks are highly cyclical, the company has successfully pivoted toward high-margin, mission-critical software and sensors that are essential for modernizing the global power grid and AI infrastructure. Ovation, marketed by the firm, is a software that manages electricity generation at massive utility facilities and AI data centers. In Q1 2026, Ovation posted a staggering 74% order growth, including a major win to automate a new 1.7-gigawatt AI data center in the US. Once a chemical plant or power grid integrates Emerson’s control systems, the cost and risk of switching to a competitor are prohibitive. This creates a lock-in effect that ensures recurring revenue regardless of the economic cycle.

READ ALSO: D. E. Shaw Stock Portfolio: Top 10 Stocks to Buy.

Emerson Electric Co. (NYSE:EMR) is one of the most consistent income generators in corporate history. In February, the firm declared a dividend of $0.555 per share, marking its 69th consecutive year of dividend increases. The stock currently yields approximately 1.5%–1.6%. While the yield is lower than some peers, it is backed by an exceptionally strong $7.9 billion backlog, up 9% year-over-year, providing high visibility for future payouts. The firm has aggressively de-risked its business by divesting volatile, non-core assets. For example, by spinning off its climate technologies and integrating AspenTech, Emerson has moved toward a model where two-thirds of revenue is expected to be recurring or software-based.