Defensive securities

(redirected from Defensive Company)

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 ?
Russ Mould, investment director at AJ Bell, said: "Bunzl has historically been seen as a defensive company, providing products companies need to do business but not items they sell to customers.
A defensive company is one whose sales and earnings remain relatively stable during both economic upturns and downturns.
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.
Unilever is often thought of as a defensive company. In other words, even when the economy is slowing, consumers will continue to spend money on food and hygiene.
A defensive company is generally passive towards its IP, and is looking to collect assets that can protect it if the company is charged with violating the rights of others.
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.