- In a market fraught with uncertainty, investors often seek refuge in defensive-minded stocks that offer stability and resilience.
- Two such stalwarts, Johnson & Johnson and Coca-Cola, embody the essence of safe-play investments.
- For investors looking to weather the storm, these two giants offer the reassuring combination of safety and the prospect of steady returns.
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In turbulent market conditions, investors often turn to “boring” stocks—those steady, defensive plays that provide stability and reliable returns even when broader markets are volatile.
Two such stocks are Johnson & Johnson (NYSE:JNJ) and Coca-Cola (NYSE:KO), both of which have a long history of delivering consistent dividends, solid fundamentals, and resilience in challenging times.
For investors looking to weather the storm, these two giants offer the reassuring combination of safety and the prospect of steady returns, making them ideal for investors prioritizing capital preservation in February 2025’s uncertain climate.
1. Johnson & Johnson
- Year-To-Date Performance: +13.2%
- Market Cap: $394.2 Billion
Johnson & Johnson is one of the world’s largest healthcare companies, operating across pharmaceuticals, medical devices, and consumer health products. Its diversified business model and strong global presence have positioned the company as a defensive leader in the healthcare sector.
JNJ is currently at $163.73, earning the New Brunswick, New Jersey-based company a market value of $394.2 billion. Shares are up by roughly 13% so far in 2025.
Source: Investing.com
In times of market turmoil, J&J’s defensive characteristics shine through, making it a reliable investment for risk-averse investors. Its strength lies in its broad market exposure, strong R&D capabilities, and a deep moat created by its diverse portfolio of successful brands.
Even in times of economic stress, the demand for essential healthcare products remains relatively stable, bolstering the company’s earnings. Furthermore, J&J’s impressive history of steady dividend growth makes it an ideal safe-play stock in uncertain market conditions.
The company maintains a ‘GOOD’ Financial Health Score of 2.91 and exhibits low volatility with a beta of 0.51, making it an excellent hedge against market turbulence. It is worth mentioning that shares are currently trading below both their Fair Value estimate ($178.84) and the mean analyst target price ($168.44).
Source: InvestingPro
With its steady growth prospects, consistent revenue streams and strong track record of returning capital to shareholders through dividends, Johnson & Johnson is a standout defensive stock to own as market conditions evolve.
2. Coca-Cola
- Year-To-Date Performance: +13.8%
- Market Cap: $304.8 Billion
Coca‑Cola is a global leader in the beverage industry, renowned for its flagship soft drink and a diversified portfolio that includes juices, teas, sports drinks, and bottled water. Its portfolio includes household names such as its namesake Coca-Cola brand, as well as Sprite, Fanta, Powerade, and Dasani.
KO stock is currently trading at $70.87, earning the Atlanta, Georgia-based beverage giant a valuation of approximately $305 billion. Shares have been on a tear since the start of 2025, rising 13.8% year-to-date.
Source: Investing.com
Coca-Cola’s growth prospects may not scream excitement, but that’s precisely its strength. The company’s extensive distribution network and powerful brand recognition have made it a staple of consumer discretionary spending.
Coca-Cola’s revenue is underpinned by consistent demand for everyday products, making it a defensive stock that holds up well during economic downturns. Additionally, its focus on emerging markets and digital marketing presents significant avenues for future growth.
With a ‘GOOD’ Financial Health Score of 2.75, KO demonstrates robust operational stability, high profitability, and solid cash flow generation. Investors appreciate its predictable earnings and attractive dividend yield, which have provided steady income for over 50 years.
Source: InvestingPro
In a volatile market, Coca‑Cola’s ability to weather economic headwinds and maintain its market share makes it a safe play for protecting portfolios against uncertainty.
Conclusion
For investors looking to shield their portfolios from the current bout of market turmoil, Johnson & Johnson and Coca‑Cola offer compelling defensive strategies. These companies are not only leaders in their respective sectors but also exemplify stability, reliable dividends, and the ability to generate consistent cash flow regardless of economic cycles.
In a world of market volatility, these two “boring” stocks provide the safety and steady performance that can help anchor a diversified investment portfolio.
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Disclosure: At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF (SPY), and the Invesco QQQ Trust ETF (QQQ). I am also long on the Invesco Top QQQ ETF (QBIG), Invesco S&P 500 Equal Weight ETF (RSP), and VanEck Vectors Semiconductor ETF (SMH).
I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.