The ASX share market can be a stressful place – just look at how 2025 has gone so far. But, there are a few businesses that could be compelling ideas and be less volatile for investors.
Living through a market decline may be unhelpful for investors wanting a good night's sleep. We should expect a bit of share price movement for ASX shares regularly – that's why shares are seen as riskier than a term deposit – but some businesses tend to be more volatile than others, partially due to the type of business they are.
While the below businesses could experience volatility in the future, I'm hopeful they can provide resilience and good earnings during all economic circumstances.
Coles Group Ltd (ASX: COL)
We all need to eat food, so a supermarket business is a compelling business to own, in my view. Coles has shown the essential nature of its operations over the past five years, with an impressive ability to grow its sales, profit and dividend.
The ASX share continues to see sales growth each reporting period and it has recently opened multiple advanced distribution warehouses, which should help improve customer service and increase efficiencies.
With Australia's growing population and a growing Coles store network, I think this supermarket business can continue growing earnings in the foreseeable future. Predictable, growing earnings should help give the market more confidence in the ASX share. It currently has a grossed-up dividend yield of 4.6%, including franking credits.
Wesfarmers Ltd (ASX: WES)
Wesfarmers is a fantastic retailer, in my view, with category leaders including Kmart, Bunnings and Officeworks.
I think each of these businesses provides essential products for households and businesses, giving them a certain level of defensive demand. I think the COVID-19 and inflationary years showed how resilient their revenue and earnings are capable of holding up during difficult periods.
The ASX share has demonstrated its ability to continue growing profit, which is the sort of thing investors may like to see when share markets are going through uncertainty. If households go through further economic difficulties, I think Kmart and Bunnings may be able to capture more of a household's spending because of their strong value credentials.
It currently has a grossed-up dividend yield of 3.5%.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is an investment conglomerate that has designed its portfolio to deliver defensive/economically uncorrelated cash flow. It's invested in areas like telecommunications, resources, agriculture, swimming schools, industrial properties, credit and so on.
The ASX share has paid a dividend every year in its 120-year history and it has grown its annual dividend every year since 2000.
Diversification within the business has helped reduce risks, and ongoing investment should help that dynamic further.
It currently has a grossed-up dividend yield of 3.8%, including franking credits.
