5 Defensive Dividend Income Stocks

When the stock market becomes volatile, investors can find solace in defensive stocks. Often times, these stocks have a beta of .5 to .75. In other words, these stocks move upward or downward at 50% or 75% of the overall stock market. Defensive stocks have a business model which succeeds during economic booms and economic bust cycles. Examples of these types of business models include firms selling alcohol or tobacco, utility stocks, or fast food franchises. Altria Group Inc. (MO)Altria's sustainable competitive advantages clearly are focused upon two core product lines: Cigarettes: Market share leader Marlboro's. Smokeless tobacco: market share leaders Copenhagen and Skoal The tobacco industry's sustainable competitive advantage includes a modern, regulated industry. The sector is shunned by many investors due to perceived social awareness issues, but Altria sells legal products to a willing, legal-age customer base. Tobacco has significant barriers to entry due to established... Read more