Are we headed for a repeat of 2022’s brutal selloff? While no one can predict the future with certainty, current market trends are raising some ominous red flags. After a meteoric rally fueled by the AI craze, many investors seem to be taking profits off the table. And who can blame them? The surge we’ve witnessed is eerily reminiscent of the 2021 rally.

And let’s not forget the potential domino effect for certain sectors. With tech and AI stocks commanding such hefty weightings in the major indexes, a selloff in these sectors could drag the broader market down with it. Some even fear such a selloff could induce a full-blown recession, as panic-stricken companies scramble to beat Wall Street’s estimates in a desperate bid to revive their share prices.

Of course, this could just be a temporary 10% hiccup, akin to the summer 2023 correction we weathered. But if you’re keen on protecting those hard-earned gains, it might be wise to shift into a defensive stance – at least for the time being. Here are seven defensive stocks worth considering as you batten down the hatches.

McDonald’s (MCD)

McDonald’s (NYSE:MCD) is a defensive stock that should be on every investor’s radar, especially if we’re headed for a market downturn. This fast-food titan has some of the stickiest demand out there – an impressive feat for a restaurant company where demand is typically cyclical.

Indeed, McDonald’s has defied the odds time and again. The company delivered solid returns even during the Great Recession, barely taking a scratch during the COVID pandemic, bouncing back faster than most. The fact that McDonald’s managed to deliver good performance even when restaurants were shutting down worldwide is a testament to the resilience of its business model. If there’s a recession strong enough to knock down McDonald’s, the stock market might be the least of your concerns.

What’s more, McDonald’s boasts a stellar 33% net margin, better than 98% of the restaurant industry. With a 3-year revenue growth rate of nearly 11%, this mature company is one of the best performers in its space. The stock’s forward dividend yield of 2.4% sweetens the deal even further, providing a nice income stream to cushion any potential volatility. In short, McDonald’s is one of the top defensive stocks that should be a core holding in any downturn-proof portfolio.

Huntington Ingalls Industries (HII)

Huntington Ingalls Industries (NYSE:HII) is the largest military shipbuilding company in the United States. This global, all-domain defense provider also offers professional services to partners in government and industry. And here’s the kicker – Huntington builds ships in more classes than any other U.S. naval shipbuilder.

If there’s one thing you should know, it’s that government contracts are some of the stickiest sources of revenue out there. Huntington Ingalls has big money locked down in a very lucrative industry. And with China ramping up its naval military production way beyond the U.S., I see the military shipbuilding space heating up even more. I doubt military spending would slow even if a bad recession takes place, given the hot geopolitical environment.

So, you can expect HII stock to keep delivering consistent, safe returns. The company’s 1.9% dividend yield also makes it worthwhile to hold the stock, despite its lack of flashiness. However, if a war breaks out that requires substantial naval power, expect the company’s growth to get a lot flashier.

Flowers Foods (FLO)

Flowers Foods (NYSE:FLO) is one of my favorite defensive stocks for reliable long-term returns. The trajectory of this stock over the past two years has been essentially unbroken, and despite a recent correction, it’s back to compounding again. It’s a lot like McDonald’s in the sense that it’s a discretionary name, but the demand here is very sticky and growing steadily. It’s unlikely to disappoint from these levels.

Flower Foods’ dividend yield of 3.7% is also especially juicy here. I don’t see massive swings in either direction for this stock, but the main aim of this article is to find stable picks, and this one is definitely not going much further down from current levels. You’re paying just 20-times earnings and 1-times forward sales for one of the most stable companies with big dividend payouts. Moreover, we could see earnings climb substantially once rates are cut, as this company spends a lot of money on interest payments.

Colgate-Palmolive (CL)

Colgate-Palmolive (NYSE:CL) needs no introduction – it’s a household name synonymous with reliable, recession-proof products. This consumer staples giant has some of the stickiest demand out there, unlikely to be knocked down by any economic downturn. The company offers stability and reliability in a volatile market, with a wide portfolio of products that people buy regardless of market conditions.

The stock’s chart is about as boring as it gets if you zoom out, and that’s precisely what you want during turbulent times. Even though Colgate has delivered some solid gains recently, I expect it to remain a steady Eddie going forward. This is exactly the kind of stock you’d want to hold during a downturn. Just sit on that 2.26% dividend yield and let it compound while most other stocks shave a third of their value. You could then emerge from that storm as a winner.

Sure, the company’s dividend growth has been weak, but Colgate remains a reliable source of income with over 60 years of consecutive raises.

Cardinal Health (CAH)

Healthcare stocks like Cardinal Health (NYSE:CAH) are unavoidable if you’re looking to build a stable portfolio. These companies have incredibly sticky demand, as health is not something you can compromise on. Moreover, American healthcare is notorious for being expensive, and domestic companies have immense pricing power that’s not hugely restricted by the government. Cardinal Health has almost doubled since early 2022, and while the stock has seen downturns historically, those dips weren’t drastic, and the company recovered quickly.

You’re definitely paying a premium for this stock, but the company’s execution is worth the price tag. Cardinal is expected to see 10.4% revenue growth and 26% earnings per share growth in 2024, and the stock has a forward dividend yield of 1.95%. All of that for just 14-times forward earnings is still very attractive, especially when you consider the company’s neutral balance sheet.

Dollar General (DG)

I’ve been pounding the table on Dollar General (NYSE:DG) for quite some time after its plunge. It’s the only stock on this list that has declined considerably. However, I still call it one of the safest bets right now because of that very decline. The stock is unlikely to go down much further, and a recovery has already started to take shape. In fact, I believe multi-bagger returns are possible here within a decade if you buy at current levels.

The expectations going forward can be described as pitiful, and we all know that established retail companies hardly disappoint when consumer confidence and spending inevitably bounce back and the company’s stock returns to a fairer valuation. Dollar General also has a 1.65% forward dividend yield, so you’ll be rewarded for holding it through the storm. Gurufocus’ model puts the fair value for the stock at $272 right now. The stock currently trades at a paltry $143.

Otis Worldwide (OTIS)

Otis Worldwide (NYSE:OTIS) is a company that makes escalators, moving walkways, and other vertical transportation equipment. The stock doesn’t have much of a history since the company went public fairly recently in 2020. However, I believe this company has the ingredients to remain a sticky business even during tough times.

Otis has strong underlying growth drivers, driven by an extensive portfolio of elevator units that could drive multiple expansion in the years ahead. We’re looking at a very stable 10% annual earrings growth going forward, along with 4% annual revenue growth. There’s also a 1.4% forward dividend yield to consider.

It’s important to remember that elevator companies like Otis not only generate revenue from new elevator sales; they’re also needed for routine upkeep of the huge amount of elevator units they operate. This leads to a very good base of recurring revenue that’ll keep the business running during tough times.

On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.