Defensive securities

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Defensive securities

Low-risk stocks or bonds that will provide a predictable and safe return on an investor's money.

Defensive Securities

Low-risk securities, especially stocks in companies relatively unaffected by business cycles. In times of market downturn, investors tend to seek defensive securities to provide a steady rate of return, or at least to lose less money than the market as a whole. Examples include stocks in utility companies and the health care industry.
References in periodicals archive ?
A defensive company is one whose sales and earnings remain relatively stable during both economic upturns and downturns.
Growth & Income - Becton, Dickinson and Company (NYSE: BDX) Investors looking to add a defensive company to their portfolio without sacrificing growth should consider medical technology firm Becton, Dickinson and Company.
Sometimes a defensive company is not necessarily a good buy if it is on an expensive valuation.
Finally, at Arden, LOUISE RICHARDSON fields Halfords (367 1/2 p) as a defensive company in a difficult retail environment, supported by a share buy-back.
Analysts said Arriva's results were broadly in line with expectations and that the remains the most defensive company in the sector.
We strive to change from a defensive company to an attacking one,' said Mr Kurokawa, who took over as Fujitsu's president last year from current chairman Naoyuki Akikusa.
After a year in which PECO Energy reached a landmark restructuring settlement with the Pennsylvania Public Utility Commission to open its electric market, agreed to the nation's first sale of a nuclear power plant, and outperformed each of the nation's top 50 utilities in shareholder return, WIEG president Roger Gale said PECO Energy has "turned from a slow and defensive company to a strong promising winner" and "a key company to watch" among U.
Although a defensive company in so far as people must eat, Compass does have some cyclical exposure in that it has benefited from a rise in employment levels as company canteens become more busy, particularly in the United States.