Markets in Turmoil: 3 Defensive Dividend Stocks to Ride Out Inflation Fears

The current market uncertainty and inflation fears have investors seeking safe havens in defensive dividend stocks. These stocks are characterized by healthy balance sheets, limited debt exposure, and pricing power tied to non-discretionary products and services.

Casey's General Stores (CASY) is a prime example of this type of stock. With 27 consecutive years of dividend increases and a double-digit distribution growth rate, CASY is a Dividend Champion. The company has also been expanding its convenience store chain organically and through acquisitions, with very little debt.

Johnson & Johnson (JNJ) is another defensive dividend stock that stands out. With over 60 consecutive years of dividend increases and a payout ratio of about 60%, JNJ is a Dividend King. The company's repositioning around Innovative Medicine and MedTech has improved margins and accelerated sales of key therapies.

PepsiCo (PEP) is also a well-established consumer giant that is positioned to pivot with changing snacking trends. Despite its current struggles, the company's underlying metrics reveal slow, steady improvements and strengths in key areas such as International.