5 Best Defensive Stocks to Buy Amid Geopolitical Tensions

4. Dollar General Corporation (NYSE:DG)

Stock Upside Potential: 33.44%

Short Float: 3.77%

Number of Hedge Fund Holders: 47

Dollar General Corporation (NYSE:DG) is one of the best defensive stocks to buy amid geopolitical tensions. On June 2, Telsey Advisory Group reiterated a Market Perform rating on Dollar General Corporation (NYSE:DG) and a $140 price target, following impressive first-quarter 2026 results.

Total sales in the quarter were up 3.4% year over year to $10.8 billion, as comparable sales increased 2%, in line with expectations. Revenue increased, driven by positive sales contributions from new stores, partially offset by the impact of stores closed.

Net income was up 13.3% to $444.1 million compared to $391.9 million delivered in the same quarter last year. Similarly, earnings per share came in at $2, better than the $1.89 analysts were expecting and up 12.4% year over year. Gross margin improved by 65 basis points to 31.6% at the back of higher markups and lower shrinkage and damage.

Following the impressive first-quarter results, the Board of Directors has approved a quarterly cash dividend of $0.59, payable on July 21 to shareholders of record on July 7.

Dollar General Corporation (NYSE:DG) is a large discount retailer that offers convenient neighborhood shopping for everyday essentials. Operating over 20,000 stores primarily in the United States, it caters largely to budget-conscious consumers by offering affordable food, household goods, apparel, and health and beauty products.