Top 4 defensive stocks to buy and hold ahead of Liberation Day

American stocks have crashed this year as concerns about Donald Trump tariffs rose. The top blue-chip indices like the Dow Jones, Nasdaq 100, and S&P 500 have all moved into a correction as recession odds have soared. 

Donald Trump will unveil his Liberation Day tariffs next week, triggering a prolonged trade war that may crash American stocks. This article explores one of the best defensive stocks to buy ahead of this so-called Liberation Day.

Defensive stocks to buy ahead of Liberation Day

Some sectors will do well whether there is a trade war or not. The most notable one is healthcare since private health insurance companies and government programs like Medicare and Medicaid pay for most drugs. 

Other defensive sectors are utilities and consumer staples. So, some of the best shares to buy are: Enterprise Products Partners (EPD), Procter & Gamble (PG), Berkshire Hathaway (BRK), and AbbVie (ABBV).

Enterprise Products Partners (EPD)

EPD is one of the best defensive stocks to buy ahead of Liberation Day. It is one of the biggest companies in the energy industry, offering logistics solutions to some of the top firms in oil and gas.

EPD is involved in various parts of the energy industry, including gathering, transportation, and processing. 

The benefit of buying this stock is that it will not be affected by tariffs since Americans will continue using oil and gas. On top of this, it has a dividend yield of about 6%, higher than government bonds. Also, its stock continues to do well, and analysts expect its stock will rise from $34 to $36.

Procter & Gamble (PG)

Procter & Gamble, popularly known as P&G, is another top stock to buy when Trump launches his trade war. It is a dividend king that has survived most world crises, including the first and second world wars, Cold War, Covid, and the last trade war. 

P&G is a global brand with some of the best-known brands like Pampers, Ariel, Downy, Tide, and Always. These are brands with a loyal following, meaning that they will continue doing well when tariffs come. Also, the company has many factories in the US, meaning that it will not be affected greatly by tariffs. The average PG stock forecast is $178, up from $168.

Berkshire Hathaway (BRK)

The other blue-chip defensive stock to buy is Berkshire Hathaway, a conglomerate worth almost $1 trillion.

Berkshire invests in tens of American companies, including Apple, American Express, Bank of America, Coca-Cola, Moody’s, VeriSign, and Davita. All these are blue-chip stocks in their own right, and most of them will not be affected by Trump’s tariffs. 

For example, Coca-Cola’s drinks will always be bought regardless of the tariffs. The same is true with Moody’s.

Berkshire is also a good defensive stock because of its large cash balance, which stood at over $334 billion. This means that it has the cash it needs to make opportunistic purchases. 

AbbVie

AbbVie is another blue-chip and defensive stock to buy and hold. It is a large pharmaceutical company popular known for drugs like Humira, Rinvoq, and Skyrizi. Its main recent challenge is that Humira’s sales have dropped because of its patent expiry. However, Skyrizi, a drug used to treat psoriasis and Chron’s disease, has become its top seller.

Analysts anticipate that AbbVie’s growth will continue in the coming years. The average estimate is that its revenue will rise by 5.4% this year to $59.36 billion and by 8% in 2026 to $64.2 billion. 

Read more: AbbVie stock analysis: Rinvoq and Skyrizi are big catalysts

Other defensive shares to buy

The other top defensive companies to buy are blue-chip banks like Goldman Sachs, JPMorgan, and Morgan Stanley. Companies like Unilever, Colgate Palmolive, and PepsiCo are other good buys too.