5 Best Defensive Stocks to Invest In Now

In this article, we will list the 5 best defensive stocks to invest in now. Please visit 14 Best Defensive Stocks to Invest In Now if you would like to see the extended list and the methodology behind it.

Stocks

5. Bristol-Myers Squibb Company (NYSE:BMY)

Bristol-Myers Squibb Company (NYSE:BMY) remains a favorite for conservative portfolios due to its exceptionally low volatility and its status as a high-yield income fortress. In a year marked by geopolitical tension and oil-driven market swings, the stock has served as a critical shock absorber for investors. It currently boasts one of the lowest betas in the S&P 500. This means it is roughly 73% less volatile than the broader market. As a major provider of life-saving oncology, cardiovascular, and immunology drugs, demand for the products marketed by the firm is decoupled from economic cycles. For example, patients do not stop taking medicines like Eliquis or Opdivo during a recession.

Bristol-Myers Squibb Company (NYSE:BMY) is a top pick for income-focused funds because of its generous and reliable payout. Following the quarterly dividend of $0.63 per share paid in early 2026, the stock offers a significantly higher yield than many of its big-pharma peers. Despite recent earnings headwinds, the firm maintains a healthy cash payout ratio of approximately 35%. This provides a massive buffer to continue raising dividends while still funding the $9 billion+ annual R&D budget required to refresh its pipeline. The company is successfully transitioning to a new product portfolio. It is currently replacing revenue from legacy drugs with new launches like Camzyos, for heart disease, Sotyktu, for psoriasis, and Cobenfy, for neuropsychiatry. These growth products saw a 10% increase in the most recent quarter, de-risking the company’s long-term revenue outlook.