5 Defensive Stocks For A Highly Volatile Market

By Michael Williams Amidst all the uncertainty in the markets, investors are struggling between holding cash or trying to find some safe defensive plays that will be able to weather the storm. Some suggest picking cyclical stocks, others recommend targeting solid companies, and still others are suggesting investors play dividends. In this article, I will analyze five stocks commonly sought out as defensive plays and discuss why they are a good way to defend your portfolio in the current market. Lockheed Martin Corp (LMT): Shares are trading around $82 at the time of writing; just off their 52 week high of $83.71 and above their 52 week low of $66.36. Lockheed offers an annual dividend of $4 for a 4.8% yield with a 36% payout ratio. The most recent increase to its dividend came in the last quarter of 2011 when it went from $0.75 to $1. In its most recent 10-Q LMT acknowledges that sales to the U.S government make up 85% of sales, 14% to other governments, and only 1% to commercial customers. With the U.S. Defense cuts coming, one would think the outlook looks bleak for Lockheed. Fortunately for Lockheed, its main aircraft programs are not on…