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How to Beat a Choppy Market With 4 Steady Stocks

2026-10-11 17:01 •Matt Dilallo •The Motley Fool Positive Axe Cap view: Selective •Rates•Equities•Earnings•Capital Returns •WMT•O•PEP•VZ

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Weathering Volatility: Lessons from Four Defensive Giants

Four steady global dividend growers offer valuable lessons for South African investors amid choppy markets.

The global emphasis on dividend kings like Walmart and PepsiCo, plus reliable income names like Realty Income and Verizon, highlights what many JSE investors already know: defensive qualities matter in tough times. While these US-listed stocks may not have direct local equivalents, their traits—consistent payout growth, recession resilience, and pricing power—are crucial. South African banks like Standard Bank and FirstRand, with solid dividends and market dominance, share some defensive attributes. Similarly, consumer staples counters such as Shoprite and Woolworths tend to hold up better when markets get jittery. Given the rand’s usual sensitivity to global risk and currency swings (USD/ZAR remains a key barometer), holding holdings with pricing power and dividend consistency can offset rand volatility. Still, local companies face risks from domestic policy uncertainty and slower economic growth, which could undercut earnings despite their defensive branding. this is just our opinion and not financial advice

How I would invest

Stick with reliable dividend payers like Standard Bank, FirstRand, and Shoprite. They won't sprint ahead in a rally but should shield portfolios during rough patches. Consider trimming high-beta or cyclicals exposed to rand weakness. Monitor USD/ZAR closely, as further rand depreciation could pressure earnings and equity valuations.

What I would watch
  • Standard Bank
  • FirstRand
  • Shoprite
  • USD/ZAR
What could go wrong
  • South African economic slowdown
  • Rand volatility caused by external shocks
How strongly I feel

6/10

The article recommends four defensive stocks to weather market volatility: Walmart, Realty Income, PepsiCo, and Verizon. These companies are characterized by resilient earnings, long dividend growth histories, and pricing power. Walmart and PepsiCo are Dividend Kings with 50+ years of consecutive increases, while Realty Income has outperformed the S&P 500 in 11 of 13 major corrections since 1994. Verizon offers a high dividend yield with 20 years of consecutive increases.

Our take is based on reporting first published by The Motley Fool.

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