How did these ASX defensive shares hold up in March?

During periods of volatility, investors often turn to ASX defensive ASX shares. 

Defensive shares are typically in established, mature companies that tend to maintain consistent profits and dividends regardless of the broader economic climate. 

These companies usually operate in non-discretionary sectors like healthcare, consumer staples, and utilities. 

These companies provide essential goods and services that everyday consumers need, regardless of economic conditions. 

Defensive companies often return a significant portion of their profits to shareholders via dividends.

The ASX 200 dropped nearly 8% in the month of March, as investor sentiment dipped as a result of the conflict in the Middle East.

Let’s see if these defensive shares lived up to their name. 

Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW)

As Australia’s two largest supermarket chains, Coles and Woolworths shares are often categorised as defensive options. 

The ACCC estimates these two companies account for a combined 67% of supermarket grocery sales nationally. 

Despite high inflation and interest rate rises, Aussies still rely on these companies for groceries and essential household items. 

During the month of March, Coles shares lived up to their reputation as a defensive stock, rising roughly 3%. 

If you include the start of April, Coles shares are up 6% since March 2. 

Meanwhile, Woolworths shares stayed relatively flat during the March, rising just under 1%. 

Both fared significantly better compared to the 8% fall for the ASX 200. 

Telstra Group Ltd (ASX: TLS)

Telstra is Australia’s largest and longest-running provider of telecommunications and information products and services.

It is considered a defensive stock thanks to its market share and because its business is built around essential, recurring mobile and internet services that people keep paying for even during economic downturns.

It also has a strong dividend payment history. 

During March, it certainly provided relief for investors, as it rose almost 2%. 

Despite being up more than 11% so far in 2026, it is still generating positive outlooks from brokers. 

Macquarie recently retained their outperform rating on this telco giant’s shares with an improved price target of $5.64.

Transurban Group (ASX: TCL)

Transurban is one of the world’s largest toll-road operators, managing and developing urban toll-road networks in Australia and North America. 

The company develops, operates, maintains and finances toll-road networks. 

It is widely seen as a defensive ASX stock because it owns and operates toll roads that generate stable, long-term, and relatively predictable cash flows. 

Despite this reputation, it did fall more than 3% during the month of March. 

However, this was significantly better than the broader ASX 200 index. 

The post How did these ASX defensive shares hold up in March? 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 positions in and has recommended Macquarie Group and Transurban Group. The Motley Fool Australia has positions in and has recommended Macquarie Group, Telstra Group, Transurban 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.