Once again investors look set for a volatile period with Greece's economic outlook seemingly on the brink of the unknown.
If you haven't already, now is a timely opportunity to review your portfolio and assess whether your portfolio has enough protection against downside risks.
Ideally a portfolio strikes a balance between offense and defense with the mix dependent upon a number of things including your investment horizon, your risk profile and at times your view on the outlook for the stock market.
Given the relatively full valuations at present and the potential for Greece to spark some form of sell-off, dedicating a portion of your portfolio to quality defensive assets would appear to make particular sense right now.
Here are four worth considering:
- Transurban Group (ASX: TCL) – Australia's leading toll road owner and operator controls a high quality set of assets. These toll assets provide a steady and consistent revenue stream and the group is forecast to grow earnings and dividends in the coming years. Based on financial year (FY) 16 forecasts, Transurban is trading on a yield of 4.6%.
- Woolworths Limited (ASX: WOW) – While the outlook for Australia's largest retailer is under a cloud at the moment, that could change during a market rout as investors refocus on the defensive nature of Woolworths' business and the sustainability of its dividend. Based on FY 16 forecasts, Woolworths is trading on a yield of 5.1%.
- Primary Health Care Limited (ASX: PRY) – As a provider of basic health care needs such as GP services and pathology, Primary should enjoy steady demand for its services even if stock markets get the jitters. A defensive earnings base should also help Primary maintain its dividend even during tough economic times. Based on FY 16 forecasts, Primary is trading on a yield of 4.5%.
- Telstra Corporation Ltd (ASX: TLS) – Australia's largest telco provider is also one of the market's favourite yield stocks for good reason. Telstra's diversified and entrenched customer base provides the group with a stable revenue stream. Based on FY 16 forecasts, Telstra is trading on a yield of 5.2%.
