As the S&P 500 index breaks below a significant support level and leading stocks struggle in the market, investors are seeking refuge in defensive sectors with strong dividend yields and compelling technical profiles. Here are three stocks that stand out during this period of market uncertainty:
1. Bristol Myers Squibb Co. (BMY) in the health care sector is currently consolidating after breaking above the $54 resistance level. The stock is approaching a breakout point at the $61 resistance level, which, if breached, could lead to a strong uptrend. With a dividend yield of over 4% and a promising technical setup, BMY offers a potential combination of price performance and dividends in the health care industry.
2. British American Tobacco (BTI) in the consumer staples sector presents an interesting opportunity following a recent pullback. Despite a gap lower after earnings, BTI found support at its 50-day moving average, indicating a bullish trend. With a dividend yield exceeding 7%, BTI's chart shows resilience in a sector that has performed well in 2025.
3. American Electric Power Co. (AEP) in the utilities sector has surged to a new 52-week high while broader market indices have struggled. AEP's breakout above the $102 resistance level signals a new uptrend following a consolidation phase. With strong price momentum, improving relative strength, and a dividend yield around 3.4%, AEP stands out as a stock to watch in the utilities sector.In times of market volatility, investors are turning to defensive sectors with stable dividend yields and solid technical setups. These three stocks, representing health care, consumer staples, and utilities industries, offer potential opportunities for investors seeking to navigate through uncertain market conditions.
With the S & P 500 breaching a critical support level at 5,850 and the once high-flying "Magnificent 7" stocks now resembling the "Meager 7" in 2025, investors are seeking refuge amidst market turbulence.
Health Care Sector: Bristol Myers Squibb Co. (BMY)
Amidst a challenging market, the health care sector has emerged as a top performer in 2025. Bristol Myers Squibb Co. (BMY) stands out due to its current consolidation phase following a breakout above $54 last year.
As BMY approaches the $61 resistance level, a potential upward breakout could signal a positive trend change, supported by upward-sloping moving averages and a dividend yield exceeding 4%.
In his analysis, Keller delved into the stock performance of AEP, highlighting key trends and potential areas of growth or concern. He also examined Bristol-Myers Squibb, discussing how recent market movements could impact the pharmaceutical giant's future prospects. Additionally, Keller shared his thoughts on British American Tobacco, shedding light on the company's position in the ever-evolving tobacco industry.
As an expert in technical analysis, Keller's breakdown of these charts offers investors and traders valuable information to make informed decisions in the stock market. By studying the charts of AEP, Bristol-Myers Squibb, and British American Tobacco, market participants can gain a deeper understanding of these companies' stock performance and navigate the complexities of the financial markets more effectively.
Consumer Staples Sector: British American Tobacco (BTI)
Consumer staples, particularly the tobacco sector, have shown resilience since mid-2024. British American Tobacco (BTI) presents an intriguing opportunity post a recent pullback to key price support levels.
Despite a 13% dip post-earnings, BTI's bounce off the 50-day moving average reaffirms its bullish stance, coupled with a dividend yield surpassing 7%.
Utilities Sector: American Electric Power Co. (AEP)
As a surprising growth play in 2024, utilities, driven by increasing power demands from emerging technologies, have seen a surge. American Electric Power Co. (AEP) recently hit a new high while major indices floundered.
With a breakthrough above $102 and strong technical indicators, AEP presents a compelling case for investors, boasting a 3.4% dividend yield.
Conclusion
During uncertain market conditions, seeking refuge in defensive sectors with robust dividend yields and strong technical setups can offer investors a safe haven. By focusing on stocks like BMY, BTI, and AEP, investors may find opportunities to outperform amidst market volatility.
