Stocks plunged last Friday due to fears that the recently spotted Omicron coronavirus variant could disrupt the global economic recovery. This, along with supply chain constraints and rising input prices, could lead to a market correction in the near term. Therefore, dividend-paying consumer defensive stocks Walmart (NYSE:WMT), Procter & Gamble (PG), Costco Wholesale (COST), PepsiCo (NASDAQ:PEP), and Philip Morris (PM) could be good bets.Despite resurging COVID-19 cases, rising inflation, a slowdown in third-quarter GDP growth, and supply chain logjams, retail sales increased 1.7% month-over-month in October, owing to declining jobless claims each week and rising consumer spending ahead of the holiday season.
Major stocks plunged last Friday on concerns over the recent discovery of Omicron coronavirus variant taking a toll on the global economic recovery. This, along with the supply chain constraints and surging input costs, could keep the stock market under pressure in the near term.
Therefore, it could be wise to bet on dividend-paying consumer defensive stocks to hedge your portfolio against a market downturn. The inelastic demand for products makes consumer defensive stocks good bets now. Walmart Inc. (WMT), The Procter & Gamble Company (PG), Costco Wholesale Corporation (NASDAQ:COST), PepsiCo, Inc. (PEP), and Philip Morris International Inc. (NYSE:PM) have the potential to deliver solid returns, dodging the market fluctuations caused by Omicron and high inflation.