BREAKING: Investors are urged to consider two defensive stocks on the ASX as market volatility continues to rise. With uncertainties surrounding AI, geopolitics, and economic fluctuations, experts recommend investing $5,000 in these stocks to safeguard portfolios.
NEW REPORTS highlight The Lottery Corporation Ltd (ASX: TLC) as a strong contender. This company operates all state lotteries in Australia, except for Western Australia, and has a vast distribution network of around 4,000 retail outlets. The Lottery Corporation has demonstrated resilient demand for its products, particularly in lotteries, which offer a sense of hope to customers.
Broker UBS predicts a remarkable 20% growth in net profit for FY26, further escalating to 23% growth between FY26 and FY30. With an increasing number of sales through digital channels, the company’s margins are set to rise, and annual dividends are projected to continue their upward trend.
In addition, Coles Group Ltd (ASX: COL) is identified as one of the most stable investments available. As a leading supermarket chain in Australia, Coles provides essential food products and boasts a widespread national presence. The company reported supermarket sales soaring by 4.8% to $9.96 billion in the first quarter of FY26, excluding tobacco, where revenue increased by 7%.
Coles is outpacing its competitor Woolworths Group Ltd (ASX: WOW) in sales growth and is expected to benefit from advanced warehouse capabilities and population growth. UBS forecasts consistent growth in net profit and dividends for Coles from FY26 to FY30, marking it as a strong investment opportunity.
WHY THIS MATTERS: With increasing uncertainty in the global market, these defensive stocks provide a reliable option for investors looking to stabilize their portfolios. The appeal of consistent dividends and growth prospects makes both companies enticing choices for immediate investment.
WHAT’S NEXT: Investors should keep a close watch on upcoming financial reports and market trends as these companies continue to adapt to changing economic conditions. The future of The Lottery Corporation and Coles Group appears bright, with both companies positioned for continued success in the coming years.
For those considering their next investment, these defensive stocks may offer a sense of security in an unpredictable market.
