Seeking Refuge in Defensive Stocks (PEP, KO, CPB, HRL, MCD, VGR, MO, RAI)

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By Jon C. Ogg Updated Published

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Defensive stocks are supposed to hold up in down stock markets.  That isn’t so today.  In our list of 17 defensive stocks we routinely track, none were positive today.  On average, the defensive list is still faring better than the DJIA with a 2.25% drop and better than the S&P 500 with a 2% drop.  What is interesting is that shares of PepsiCo, Inc. (NYSE: PEP), Coca-Cola Company (NYSE: KO), Campbell Soup Company (NYSE: CPB), Hormel Foods Corporation (NYSE: HRL), McDonald’s Corporation (NYSE: MCD), Altria Group, Inc. (NYSE: MO), Vector Group Ltd. (NYSE: VGR), Reynolds American Inc (NYSE: RAI) all look to be within about 5% of their 52-week highs.

Vector Group was the ONLY stock on the defensive sector list that was not lower on the trading day.  We ran a table below to show how the drop is there even in defensive stocks today.  When you consider that many of these names are within a few percentage points of their 52-week highs, it makes sense that these are lower.  If the market is going to fall more, why not lock in profits in and wait to buy at a lower price after the drop.

Defensive Stocks Price Change$ Change% 52-Week Range Dividend
PepsiCo, Inc. (PEP) $65.63 Down 0.90 Down 1.35% 55.69 – 67.61 2.9%
Coca-Cola Company (KO) $56.20 Down 0.78 Down 1.37% 47.42 – 59.45 3.1%
Anheuser-Busch Inbev SA (BUD) $50.91 Down 1.32 Down 2.53% 38.05 – 55.50 0.7%
Molson Coors Brewing (TAP) $45.54 Down 0.64 Down 1.39% 38.44 – 51.11 2.4%
Kraft Foods Inc. (KFT $29.63 Down 0.64 Down 2.11% 25.72 – 31.09 3.9%
ConAgra Foods, Inc. (CAG) $21.55 Down 0.61 Down 2.75% 19.00 – 26.32 3.5%
Campbell Soup Company (CPB) $36.20 Down 0.22 Down 0.60% 29.81 – 37.50 3%
Hormel Foods Corporation (HRL) $43.08 Down 0.50 Down 1.15% 34.64 – 44.26 2%
McDonald’s Corporation (MCD) $71.65 Down 1.19 Down 1.63% 53.88 – 73.34 3.1%
Altria Group, Inc. (MO) $22.44 Down 0.19 Down 0.84% 17.28 – 22.78 6.3%
Vector Group Ltd. (VGR) $18.93 0 0% 13.50 – 19.30 8.5%
Reynolds American Inc (RAI) $56.58 Down 0.81 Down 1.41% 39.00 – 58.60 6.3%
Procter & Gamble (PG) $60.54 Down 0.24 Down 0.39% 39.37 – 64.58 3.2%
Colgate-Palmolive Company (CL) $76.67 Down 1.30 Down 1.67% 70.45 – 87.39 2.7%
Merck & Company, Inc. (MRK) $34.97 Down 0.80 Down 2.22% 28.69 – 41.56 4.3%
Johnson & Johnson (JNJ) $58.64 Down 0.79 Down 1.33% 56.86 – 66.20 3.6%
Novo Nordisk A/S (NVO) $86.30 Down 4.07 Down 4.50% 57.75 – 90.63 1.1%

JON C. OGG

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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