The S&P 500 experienced a close call with bear market territory earlier this year, but has since rebounded. However, it’s always wise to consider which stocks would be worth investing in if a bear market were to occur. Looking to the healthcare sector, known for its defensive nature, is a smart move. Two standout healthcare stocks to consider in a bear market are Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT).
Johnson & Johnson is a powerhouse in the healthcare industry, with a diverse portfolio spanning pharmaceuticals, medical devices, and more. The company consistently generates revenue and profits, making it a reliable choice during economic downturns. Additionally, Johnson & Johnson boasts the highest credit rating available, ensuring financial stability even in challenging times. As a Dividend King, the company has a track record of increasing dividends for over 50 years, making it an attractive income stock for investors.
Abbott Laboratories shares many similarities with Johnson & Johnson, including a strong presence in various healthcare segments. The company’s diversification allows it to weather tough economic conditions by leveraging different areas of its business. Abbott’s focus on diabetes care, particularly its FreeStyle Libre continuous glucose monitoring devices, has been a significant growth driver. Furthermore, a recent acquisition positions Abbott to make a splash in the cancer diagnostic market.
Both Johnson & Johnson and Abbott Laboratories are Dividend Kings, with Abbott boasting a streak of consecutive payout increases for 54 years. These companies offer stability and growth potential, making them solid choices for investors looking to navigate a bear market.
Before making investment decisions, it’s essential to conduct thorough research and consider expert recommendations. The Motley Fool’s Stock Advisor team recently highlighted the 10 best stocks for investors to buy now, which did not include Johnson & Johnson. Past recommendations from The Motley Fool have resulted in substantial returns, underscoring the importance of staying informed and making strategic investment choices.
In conclusion, Johnson & Johnson and Abbott Laboratories are top healthcare stocks to consider in a bear market. Their strong track records, diverse portfolios, and commitment to dividends make them resilient choices for investors seeking stability and growth in uncertain market conditions.
