3 defensive stocks for your retirement portfolio

In light of the recent minor setback on the Australian share market, investors are likely considering whether it’s the best place for their money.

Although there’s no way to avoid volatility altogether, some investors choose to buy companies which are ‘defensive’ in nature. They believe, no matter how hard the market crashes, the companies they buy, will survive.

Companies with exposure to healthcare, defence, telecommunications and infrastructure are generally considered defensive because they have strong competitive advantages and recurring revenue streams which are usually non-discretionary.

For investors approaching retirement, it’s worthwhile considering what these stocks have to offer your share portfolio.

From the healthcare sector both ResMed Inc. (CHESS) (ASX: RMD) and Cochlear Limited (ASX: COH) could be considered defensive, although both have solid long-term growth prospects.

Each also pay a good dividend, equivalent to 2.1% and 3.2% respectively and trade at reasonable valuations giving the likelihood of increased earnings per share in the next five years.

Another blue-chip company with a wide economic moat is Computershare Limited (ASX: CPU). The share registry company has a presence in over 20 countries and will benefit from a falling Australian dollar.

Buy, hold, or sell?

Every portfolio should be formed around a number of ‘core’ long-term holdings which will help you sleep easy at night. At today’s prices these three companies appear a worthy addition to long-term share portfolios.

With Computershare, ResMed and Cochlear at the core of your portfolio, it’s time to start looking for growth and our top investment advisor Scott Phillips has just released his #1 stock pick for 2015 . I think it is a GREAT buy at today’s prices! Best of all: You can get his full report on this ultra-promising ASX stock for FREE.

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Motley Fool Contributor Owen Raszkiewicz happily owns shares in Computershare. The Motley Fool owns shares of Computershare.    

In light of the recent minor setback on the Australian share market, investors are likely considering whether its the best place for their money.



Although theres no way to avoid volatility altogether, some investors choose to buy companies which are defensive in nature. They believe, no matter how hard the market crashes, the companies they buy, will survive.



Companies with exposure to healthcare, defence, telecommunications and infrastructure are generally considered defensive because they have strong competitive advantages and recurring revenue streams which are usually non-discretionary.



For investors approaching retirement, its worthwhile considering what these stocks have to offer your share portfolio.



From the healthcare sector