21 Large Cap And Low Debt Stocks For Defensive Investors

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Includes: ADP, BIIB, BMY, BRK.B, CELG, COST, CVS, CVX, DCM, GG, JNJ, MMM, MON, MRK, NEM, NVO, SNY, TEVA, TJX, V, XOM
by: Insider Monkey

Because of the recent economic downturn, defensive stocks became much more appealing to investors. We don’t know when the market will bottom but we believe investors should be cautious in the near term and should consider defensive stocks that can weather a potential recession. We compiled a list of 21 large cap stocks that are relatively defensive because they have Total Debt / Equity ratio of below 0.4 and beta of lower than 0.9.

Stock

Market Cap

P/E

Dividend Yield

Total Debt/Equity

Exxon Mobil (NYSE:XOM)

337.0

9.1

2.7%

0.1

Chevron Corp. (NYSE:CVX)

180.3

7.9

3.5%

0.1

Johnson & Johnson (NYSE:JNJ)

168.8

14.7

3.7%

0.3

Berkshire Hathaway (NYSE:BRK.B)

165.5

13.5

0.0%

0.4

Merck & Co. Inc. (NYSE:MRK)

95.7

22.5

4.9%

0.3

Sanofi-Aventis (NYSE:SNY)

86.1

14.2

5.7%

0.4

NTT DOCOMO, (NYSE:DCM)

82.8

11.9

0.0%

0.1

Visa, Inc. (NYSE:V)

73.6

21.1

0.7%

0.0

Novo Nordisk A/S (NYSE:NVO)

66.7

19.9

1.9%

0.0

Bristol-Myers (NYSE:BMY)

52.7

16.1

4.3%

0.3

3M Co. (NYSE:MMM)

52.5

12.6

3.0%

0.3

CVS Caremark (NYSE:CVS)

45.9

13.8

1.5%

0.3

Goldcorp Inc. (NYSE:GG)

36.8

21.1

0.9%

0.0

Costco Wholesale (NASDAQ:COST)

36.5

26.1

1.2%

0.2

Newmont Mining (NYSE:NEM)

34.2

13.1

1.9%

0.3

Monsanto Co. (NYSE:MON)

34.0

22.1

1.9%

0.2

Teva Pharma (NASDAQ:TEVA)

33.2

10.1

2.5%

0.3

Celgene Corp (NASDAQ:CELG)

28.8

28.8

0.0%

0.2

Automatic Data Processing, Inc. (NASDAQ:ADP)

23.0

18.6

3.1%

0.0

Biogen Idec Inc. (NASDAQ:BIIB)

22.8

21.3

0.0%

0.2

The TJX Companies (NYSE:TJX)

21.6

17.0

1.3%

0.3

Click to enlarge

The market data was sourced from Finviz.

Exxon Mobil Corp. is a giant U.S. company that manufactures and sells branded motor fuels and related products worldwide. XOM recently traded at $69.3 and has a 2.7% dividend yield. XOM gained 14.9% during the past 12 months. The stock has a market cap of $337 billion, P/E ratio of 9.1 and Total Debt/Equity ratio of 0.11. Phill Gross and Ken Fisher are large XOM holders with nearly $600 million worth of positions (see Ken Fisher’s top stock picks).

Chevron Corp. is a large U.S. energy company operating worldwide. CVX raised its annualized dividends per share from $2.88 to $3.12 last May. CVX recently traded at $90 and has a 3.5% dividend yield. CVX gained 16% during the past 12 months. The stock has a market cap of $180.3 billion, P/E ratio of 7.9 and Total Debt/Equity ratio of 0.1. Phill Gross’ Adage Capital had more than $300 million in CVX at the end of June 2011 (see Adage Capital’s favorite stocks).

Johnson & Johnson is engaged in the research and development, manufacture and sale of healthcare products. JNJ recently traded at $61.6 and has a 3.7% dividend yield. JNJ gained 2.7% during the past 12 months. The stock has a market cap of $168.8 billion, P/E ratio of 14.7 and Total Debt/Equity ratio of 0.3. Warren Buffett had $2.8 billion JNJ stock. Ken Fisher had $713 million in JNJ shares.

Berkshire is a holding company owning subsidiaries engaged in a number of diverse business activities. BRK-A recently traded at $100,320 and lost 19.7% during the past 12 months. The stock has a market cap of $165.5 billion, P/E ratio of 13.5 and Total Debt/Equity ratio of 0.35. Horizon invested $7.8 million in BRK-A and Fairholme invested $467 million.

Merck & Co. delivers health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. MRK recently traded at $31.1 and has a 4.9% dividend yield. MRK lost 13% during the past 12 months. The stock has a market cap of $95.7 billion, P/E ratio of 22.5 and Total Debt/Equity ratio of 0.33. Ric Dillon invested $173 million in MRK shares (check out Ric Dillon’s top stock picks).

Sanofi-Aventis is a global and diversified healthcare company that discovers, develops and distributes therapeutic solutions focused on patients’ needs. SNY recently traded at $31.9 and has a 5.7% dividend yield. SNY lost 1.7% during the past 12 months. The stock has a market cap of $86.1 billion, P/E ratio of 14.2 and Total Debt/Equity ratio of 0.38. Ken Fisher invested nearly $600 million in SNY shares.

NTT DOCOMO provides various communications services in Japan. DCM recently traded at $19 and gained 10.5% during the past 12 months. The stock has a market cap of $82.8 billion, P/E ratio of 11.9 and Total Debt/Equity ratio of 0.09. Jim Simons’ Renaissance Technologies holds the largest DCM position among the hedge funds we are tracking. Jim Simons reduced his DCM holdings by 4% during the second quarter. He had $25 million invested in DCM shares at the end of June.

Visa Inc. is a global payments technology company. V recently traded at $90.1 and has a 0.7% dividend yield. V gained 25.4% during the past 12 months. The stock has a market cap of $73.6 billion, P/E ratio of 21.1 and Total Debt/Equity ratio of 0. John Scully had $591 million invested in V shares.

Novo Nordisk is a Denmark based healthcare company providing pharmaceutical products worldwide. NVO recently traded at $98.1 and has a 1.9% dividend yield. NVO gained 3.6% during the past 12 months. The stock has a market cap of $66.7 billion, P/E ratio of 19.9 and Total Debt/Equity ratio of 0.04. Jim Simons’ Renaissance Technologies had $221 million invested in NVO shares at the end of June. Simons increased his NVO holdings by 26% percent during the second quarter. Ken Fisher’s Fisher Asset Management is the second largest holder of NVO shares, with $57 million invested at the end of June.

Bristol-Myers Squibb is a global biopharmaceutical company. BMY recently traded at $30.9 and has a 4.3% dividend yield. BMY gained 17.4% during the past 12 months. The stock has a market cap of $52.7 billion, P/E ratio of 16.1 and Total Debt/Equity ratio of 0.34. Both Samuel Isaly and Simons hold more than $100 million in BMY.

3M Co. is a large American conglomerate providing a wide range of diversified technology products worldwide. MMM recently traded at $74 and has a 3% dividend yield. MMM lost 12.8% during the past 12 months. The stock has a market cap of $52.5 billion, P/E ratio of 12.6 and Total Debt/Equity ratio of 0.32. Jean-Marie Eveillard had more than $600 Million in MMM at the end of June 2011.

CVS Caremark is a pharmacy services company in the United States. CVS recently traded at $34.1 and has a 1.5% dividend yield. CVS gained 11.5% during the past 12 months. The stock has a market cap of $45.9 billion, P/E ratio of 13.8 and Total Debt/Equity ratio of 0.29. As of June, Greenlight Capital had shares of CVS worth around $123 million. It’s one of the top 20 holdings of the firm’s current equity portfolio. George Soros’ Soros Fund Management had a stake of $19 million in CVS at the end of June. Robert Rodriguez’ First Pacific Advisors also has a one of the top position in the company (see Robert Rodriguez’s top stock picks).

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.