A Defensive Stock is a stock that gives constant earning and dividend irrespective of market conditions. This type of stock is also known as non-cyclic stock or consistent performer stocks. Investment in this stock is a safe bet. As per me, this stock is like fire and forget missile. You need to invest your money and forget. It will defiantly give good earnings.
It is very difficult to find such defensive or consistent performer stocks. However, after careful research, I could able to locate good defensive stocks for Investment in 2016.
Good Defensive Stocks for Investment in 2016
Britannia Industries is first defensive stocks in my list. Britannia is food processing company involved in manufacturing and sale of biscuits, bread, rusk, cakes and other dairy products like ghee, cheese etc. As we all know everything can go down but a requirement of food will never come down. If we see the performance of this stock for past ten years it is constantly giving double-digit returns. In the current year 2015, this stock gave a return of 68.91%. I recommend investing in this stock with target price of 3800 Rs.
Torrent Pharmaceuticals is next defensive stock for investment in 2016. Torrent Pharmaceuticals is flagship pharmaceutical company dealing with 1000 + products in more than 50 countries. Continues research in advance research center is plus point of this company. In last 10 years company has given consistent two digit returns. I recommend investing in Torrent Pharmaceuticals with a target price of 1750 Rs.
Bajaj Corp Consumer Goods Company is another defensive stock. Bajaj Corp holds a number of brands in hair care, skin care products. In the current year 2015, this stock gave a return of 27.46%. In last 5 years, the stock could able to give a return of 32.9%. I recommend investing in stock with target price of 550 Rs.
Marico is another consumer goods company dealing in health and beauty products. Marico is consistent performer defensive stock. The Strong brand position is plus point of Marico. In the current year 2015, this stock gave a return of 39.26%. I recommend to purchasing this stock with target price of 480 Rs.
What is your take on these Defensive stocks?
Do you think that these stocks will give a consistent return in future also?
Do share your view.