Which defensive ASX shares are outperforming right now?

It’s no surprise that many investors will be turning their attention to defensive ASX shares in the current environment. 

The S&P/ASX 200 Index (ASX: XJO) recovered 1.8% yesterday, however it remains down 7% in the past month. 

Ongoing conflict has put pressure broadly on most ASX sectors outside of energy shares.

As a quick refresher, defensive stocks are established, mature companies that tend to maintain consistent profits and dividends regardless of the broader economic climate.

With markets experiencing serious volatility since the beginning of the conflict between Iran, Israel and the US, here are some defensive shares that have offered some relief. 

Woolworths Group Ltd (ASX: WOW)

As half of Australia’s supermarket duopoly, Woolworths has an estimated 37 percent share of Australia’s grocery market. 

It operates in the consumer staples sector, supplying essential goods like groceries and household items that people need regardless of economic conditions. 

Even during downturns, consumers may cut discretionary spending but still need to buy food and everyday necessities, which helps Woolworths maintain relatively stable revenue and cash flow.

Since the end of February, Woolworths shares have essentially held flat. 

While investors are always looking for capital gain, compared to the broader market sell-offs, Woolworths shares have held strong. 

Coles Group Ltd (ASX: COL)

Unsurprisingly, Woolworths’ heated rival Coles has also held up over the last month for the same reasons. 

At the time of writing, Coles shares are actually up 5% since the end of February. 

It also has a strong history of solid dividends, which can also provide cash flow during periods of volatility. 

Telstra Group Ltd (ASX: TLS)

As Australia’s largest and longest-running provider of telecommunications and information products and services, Telstra has also held up during recent sell-offs. 

It is a defensive stock because it provides mobile, internet, and connectivity that customers continue paying for regardless of economic conditions.

Its recurring subscription-based revenue and large, established customer base help deliver relatively stable cash flows and dividends even during market downturns.

Since the end of February it has risen roughly 3%. 

APA Group (ASX: APA)

Finally, APA Group shares have also provided relief for investors over the past few weeks. 

The company is a major owner and operator of Australia’s gas distribution network, including pipelines, gas-fired power stations, and storage facilities. It currently transports more than half the natural gas used in Australia.

It is another example of a defensive option as much of its income is backed by long-term agreements and often linked to inflation, providing reliable cash flow and reducing earnings volatility even during downturns.

Since late February, it has risen roughly 5%. 

The post Which defensive ASX shares are outperforming right now? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group, Telstra Group, and Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.