Coca-Cola and Johnson & Johnson: Defensive Stocks for Turbulent Markets

The potential for a stock market crash has some investors worried about their portfolios. However, Coca-Cola and Johnson & Johnson are two defensive stocks that could provide some protection against a downturn.

Coca-Cola is over 100 years old and has established itself as a household name in the consumer staples industry. The company's beverages are considered essential items that people will continue to buy regardless of economic conditions. Coca-Cola's dividend program is also notable, with 64 consecutive years of payout increases, making it a Dividend King.

The stock is trading at a premium price-to-earnings ratio of 25.2x forward earnings, but the company's resilience and consistent dividend growth make it a worthwhile investment for income seekers building a recession-resistant portfolio.

Johnson & Johnson has also been around for over 100 years and has established itself as an innovator in the healthcare industry. The company's diversified product lineup and deep pipeline allow it to navigate challenges like losses of patent exclusivity fairly well. Johnson & Johnson is also a leader in medical devices, with products across several therapeutic areas.

The company faces some risks, including government drug price negotiations and lawsuits alleging that its talc-based products caused cancer. However, the proposed $5.5 billion settlement of its remaining ovarian talc litigation could help mitigate these risks.