With so much uncertainty in the global economy right now, ASX defensive shares could be a smart call.
Businesses that benefit from elevated inflation could outperform the wider ASX share market, as higher fuel prices (and other disruptions from the Middle East) could drive inflation higher.
Having noted that, I think the following ASX defensive shares are good buys today.
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Rural Funds Group (ASX: RFF)
Rural Funds is a real estate investment trust (REIT) that owns farmland across Australia.
Food is one of the most important commodities that a business could produce. But, the business is leasing its farms to high-quality tenants, removing the risk of operating agricultural land.
Rural Funds generates a pleasing level of rental income from its property portfolio, enabling it to guide a distribution for FY26 that translates into a distribution yield of 5.8% at the time of writing.
The reason why I think it can succeed during another bout of inflation is because a significant portion of its rental income is linked to inflation, which could mean an acceleration of rental growth during this period.
A key aspect why I think this is a good time to buy is that it's trading at a low price to the underlying value of its property portfolio (minus the loans and so on), with a metric called the net asset value (NAV).
At 31 December 2025, it had an adjusted NAV of $3.10, so it's trading at a 35% discount to this.
I love being able to buy assets for less than they're worth, like this situation with the ASX defensive share.
Telstra Group Ltd (ASX: TLS)
Telstra is Australia's leading telco with the most subscribers, the widest network coverage and the strongest economic moat in the sector, in my view.
The company has recently announced another price increase for its prepaid and postpaid users – the biggest increase came to around 10%, though other subscriber levels saw a smaller rise. This will come into play from 5 May 2026.
This is likely to increase Telstra's average revenue per user (ARPU) across FY26 and FY27, which could also help raise the company's margins. More revenue from the same subscribers is a powerful earnings tailwind.
I'm not sure how the company's costs are going to evolve, but I doubt the expenses are going to rise as much as revenue in the medium-term.
I think telecommunication services are one of the most defensive sectors, making Telstra an appealing business to consider as an ASX defensive share.
With Australia becoming increasingly digital, the ASX defensive share is exposed to an ongoing growth tailwind, which I believe will help subscriber numbers rise over time.
If it hikes the FY26 final dividend to the same level as the interim payment, it could offer a dividend yield of around 4%, excluding franking credits.
