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.