Indonesian Defensive Stock is the only stock that has an important role. Then stocks can also be relied on to provide a fairly consistent return.
This type of stock is very useful despite economic and market downturns.
Basically, companies that fall into this category are service and goods companies that people always need, even though the economy is not doing well.
Interestingly, with this stock when other companies experienced a decline but some were able to survive.
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Choose the Most Appropriate Indonesian Defensive Stock
When many are experiencing losses, companies choose defensive stocks is the best choice.
However, the consideration that the company needs to pay attention to is to know the standard rules for determining defensive stocks. So that in the selection there are no errors.
Pay Attention to Dividend Distribution
Making choices can take into account the existence of dividends that are paid consistently over a long period of time.
It is important to take steps for companies that are consistent in dividend distribution for at least 10 years or more.
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Check on Success History
The performance of defensive stock companies is a determinant in making choices. Usually these companies are well established and large in size.
The history of the company’s success is important for you to consider to make an assessment.
Companies with the best history have also been around for decades or have a market value of billions. So it is guaranteed safety.
The next Indonesian Defensive Stock that is the right choice factor is in terms of low volatility.
Volatility is a coefficient that measures the movement of stocks rather than the entire stock market.
If the company has low volatility, it shows that the company’s stock is not affected by market changes.
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Strongest Defensive Stock Company Area
Historically, defensive stocks have performed better than other stocks in times of market uncertainty. Especially the impact of the financial crisis.
Find stock companies spread across several fields such as utilities or water, electricity, and gas supply.
In addition, in the field of health services will also continue to be needed by the community. Despite the economic crisis.
The health service sector includes pharmaceuticals, insurance, hospitals, and medical devices. The other side of the field that is able to survive is the field of basic needs.
Investing in a company that provides basic needs prioritizing affordable prices with good quality. Next is the field of telecommunications, both internet providers, telephone services, and so on.
A clear example of the need for internet access is getting higher along with technological advances to date.
There are many other sectors that have proven to be able to adapt to the market. Indonesian Defensive Stocks are the best choice for investors. (R10/HR-Online)
Source : HarapanRakyat.com