Five Defensive Stocks We Like Right Now

5 Defensive Stocks We Like Right Now

M-Asset

May has been a volatile month and investors continue to worry about the stock market. Fortunately, safe-havens in equities do exist with dividend-paying healthcare stocks that pay steady levels of income helping to stabilize returns. These value-oriented companies are well-suited to shelter portfolios from the uncertainty impacting markets.

Healthcare businesses have performed extremely well in 2022. The sector is growing faster than the U.S.
economy thanks to the unwavering demand for health-related products and services. Dependable, large-cap, dividend payers in this sector have delivered steady returns despite high inflation and rising rates.

Middlefield manages several healthcare focused strategies. Feel free to reach out to your Middlefield sales representative to learn more.

Fund ETF Ticker or F Series Code Investment Focus
Middlefield Healthcare Dividend ETF MHCD Global Healthcare Equity Income
Middlefield Global Healthcare Dividend Fund MID326 Global Healthcare Equity Income
Middlefield Health & Wellness ETF HWF Global Healthcare + Wellness Equity Income

The stocks highlighted below have shown a low correlation to the market and have fared better in terms of fundamentals, margins, supply chains and pricing power. They trade at reasonable valuations and provide investors defensive growth, high margins and attractive yields.

The following equities are held across all of Middlefield’s healthcare-focused ETFs and Mutual Funds.

Company Description Market Cap(USD) Yield Investment Highlights
Abbvie logo U.S. focused biopharmaceutical company with leadership position in immunology $270 Billion 3.7%
  • Recent launch of new immunology drugs exceeding expectations
  • Consistent outperformance from aesthetics division (botox)
Sanofi logo Healthcare company headquartered in France with pharma, consumer & vaccine businesses $130 Billion 3.3%
  • Trading at material discount to European pharma peers
  • Promising vaccine pipeline including a mRNA-based flu candidate
Gilead logo Global leader in HIV treatments with expanding oncology pipeline $80 Billion 4.6%
  • High gross margins underpinned by cashgenerating HIV business
  • Attractively valued with forward P/E multiple below 10x
Medtronic logo Global medical technology & equipment company selling device-based medical therapies $140 Billion 2.4%
  • Positioned in strong end markets across eight operating segments
  • Early stages of a transformational innovation cycle
Merck logo Global biopharmaceutical company focused on cancer drugs, vaccines and animal health $230 Billion 3.0%
  • Defensive earnings supported by world’s top-selling cancer drug
  • Significant capital deployment optionality over next 12-18 months
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