With market volatility at high levels at the moment, investors may be interested in adding some defensive shares to their portfolio.
If you are, the two ASX 200 shares listed below could be worth considering. Here's why analysts are bullish on them:
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Coles Group Ltd (ASX: COL)
The first defensive ASX 200 share that could be a good option for investors is Coles.
It is of course the retail giant behind the Coles supermarket brand and a range of liquor retail brands such as Liquorland and Vintage Cellars.
Coles could be a good option for investors in the current environment due to the fact that it sells consumer staples. These are products that generally remain in demand with consumers whatever is happening in the economy. It also has positive exposure to inflation, unlike many other retailers.
Analysts at Morgans are very positive on the company. They currently have an add rating and $20.00 price target on its shares.
In addition, the broker is expecting some attractive dividend yields in the coming years. Morgans expects fully franked dividends of 65 cents per share in FY 2023 and then 66 cents per share in FY 2024. Based on the latest Coles share price of $16.68, this will mean yields of 3.9% and 4%, respectively, over the next two years.
Telstra Corporation Ltd (ASX: TLS)
Another defensive ASX 200 share for investors to consider is Telstra.
Much like Coles and the products it sells, Telstra provides essential services to millions of Australians. Another positive is the recent introduction of inflation-linked pricing, which is likely to be good news in the current environment where inflation is rising strongly.
The team at Morgans are also positive on the telco giant. Its analysts currently have an add rating and $4.60 price target on the company's shares.
And just like Coles, the broker is expecting attractive dividend yields for investors. It is forecasting another 16.5 cents per share dividend in FY 2023. Based on the current Telstra share price of $3.72, this equates to a 4.4% dividend yield.
