These are Barclays’ top defensive stocks that also pay solid dividends
Investors looking to navigate the choppy market should consider certain defensive plays, according to Barclays. That’s because it’s become clear that geopolitics, oil, artificial intelligence disruption and private credit are no longer just side risks this year, analyst Andrew Ferremi said in a note last week. “Global markets have entered a phase where geopolitical risk and structural disruption are no longer episodic shocks but persistent features of the investment landscape,” he wrote. Stocks tumbled again last week, with the Dow Jones Industrial Average ending Friday more than 10% from its most recent high and entering correction territory, while the S & P 500 notched its fifth straight week of losses. The market has been see-sawing in 2026: First, investors grappled with fear over AI disruption in certain sectors . Private credit risks also weighed on the market as major funds saw rising redemptions . Then, the Iran war broke out at the end of February, sending oil prices higher. Ferremi and his team polled the firm’s sector analysts on the best ideas for investors to manage the latest bout of market volatility. One top play is investing in stocks that are the most defensive in the current environment and are rated overweight by the analysts covering them. Many also pay dividends. Here are some of the names that made the cut. Investors can nab attractive portfolio income with Extra Space Storage , coming in with the highest yield on the list at roughly 5 % . The real estate investment trust focuses on self-storage properties, which have historically been resilient through economic cycles, analyst Brendan Lynch wrote. The sector’s financials should continue to improve as supply pressures ease, he said. It will also benefit as AI drives enhanced marketing and pricing capabilities, he added. “We believe the largest players are best positioned to capture demand and leverage technology given large volumes of customer data and strong brand recognition,” Lynch said. The stock is about flat on the year, but Barclays believes it could rally nearly 32% from Friday’s close, based on its $170 price target. JPMorgan is also in the red, down more than 11% so far this year. However, investors get paid to wait with the stock’s 2.1% dividend yield. It is one of the defensive banks and has one of the strongest balance sheets in the sector, analyst Jason Goldberg said. “Its franchise is complete (promotes stronger and deeper relationships with customers), global (allows it to serve more clients everywhere), diversified (supports more stable earnings in any operating environment), and at scale (offsets margin compression through volume growth and facilitates efficiencies),” he wrote. His $391 price target suggests 38% upside from Friday’s close. Meanwhile, Coca-Cola could move around 10% higher, based on Barclays’ $83 price target. The beverage giant is “the best example of a truly defensive, high quality Staples business,” analyst Lauren Lieberman said. The company has long had the flexibility to navigate dynamic macro conditions and the agility to go after identified opportunities in a targeted manner, she said. The stock pays a 2.8% dividend yield and has gained almost 10% year to date. Lastly, Merck & Co. has the “safe haven” characteristics investors seek from a pharma company during times of macro uncertainty, analyst Emily Field said. Her price target of $140 suggests 17% upside from Friday’s close. The stock has a 2.9% dividend yield and has moved about 11% higher so far this year.
<
