With the Federal Reserve stepping back from clear forward guidance and Kevin Warsh signaling a less predictable approach to interest rates, investors are facing more abrupt market swings and wider risk premiums. In this kind of backdrop, many turn to defensive dividend stocks with steadier cash flows and historically lower volatility as a potential anchor for a portfolio. This article looks at how that policy shift could affect dividend-focused defensives and highlights three stocks from a Defensive Dividend Stocks screener that appear positively exposed to the new information driven market tone.

TTW (TTAP.Y)

Overview: TTW Public Company Limited is a Thai water utility that produces and sells treated water to the Provincial Waterworks Authority, while also running water and wastewater treatment systems and providing ongoing maintenance services across several districts near Bangkok.

Operations: TTW generates all of its revenue, about THB 5,272.19 million, from the production and sale of treated water in Thailand.

Market Cap: US$1.13b

Income oriented investors may find TTW interesting because it combines a 6.35% dividend yield with net margins of 62% and an 18.9% ROE, all supported by water contracts that helped keep Q1 2026 revenue and earnings broadly in line with the prior year. The stock trades on an 11.5x P/E, below peer levels, and is flagged as trading below an internal DCF estimate. This may appeal if you are looking for value in more volatile rate conditions. However, the reliance on higher risk funding, the expectation of earnings decline over the next few years, and highly illiquid trading mean this is not a set and forget holding. These factors call for a closer look at the trade off between income, valuation and risk.

High margins, a 6.35% yield and an 11.5x P/E suggest TTW might be pricing in more risk than its water contracts alone explain. It is therefore worth lining these signals up against the 3 key rewards and 2 important warning signs (2 are major!)

Perusahaan Gas Negara (Persero) (PPAA.Y)

Overview: Perusahaan Gas Negara (Persero) is an Indonesian gas infrastructure company that transmits and distributes natural gas and LNG, supplies industrial, commercial and household customers, and also provides related services such as telecommunications, engineering and consulting.

Operations: Perusahaan Gas Negara (Persero) generates most of its revenue from Trading and Transmission at about US$3.7b, with smaller contributions from Other Operations at roughly US$339.6m and Exploration and Production of Oil and Gas at around US$280.9m.

Market Cap: US$2.02b

Perusahaan Gas Negara (Persero) gives you exposure to Indonesia’s gas network at a time when investors are again looking closely at steady cash flow assets as the Federal Reserve steps back from clear guidance and rate uncertainty increases risk premiums. The stock screens as inexpensive on earnings metrics, with an internal estimate suggesting it trades well below assessed fair value. Q1 2026 showed higher net income on slightly softer revenue, and the company has an upcoming dividend linked to its 2026 payout. Set against that, earnings and margins have been under pressure in recent years, the dividend record is uneven, funding is described as higher risk, and the shares are highly illiquid. Understanding how these factors balance out is important before committing capital.

Perusahaan Gas Negara (Persero) looks like a classic valuation story, with the stock flagged as inexpensive even as earnings pressure and an uneven dividend record keep many investors cautious. To see how those competing signals fit together, including the balance between its gas network cash flows, funding profile and dividend history, review the 2 key rewards and 2 important warning signs (1 is major!)

Perusahaan Gas Negara (Persero) (PPAA.F)

Overview: Perusahaan Gas Negara (Persero) (PPAA.F) is an Indonesian energy infrastructure company that transmits and distributes natural gas and LNG, supplies industrial, commercial and household customers, and provides supporting services such as telecommunications, engineering and consulting.

Operations: Perusahaan Gas Negara (Persero) generates most of its revenue, about US$3.7b, from Trading and Transmission, with smaller contributions from Other Operations of roughly US$339.6m and Exploration and Production of Oil and Gas of around US$280.9m.

Market Cap: US$2.02b

Perusahaan Gas Negara (Persero) stands out in a higher volatility, data driven rate setting world because it combines exposure to Indonesia’s gas infrastructure with a reported P/E of 8.3x and an internal estimate that it trades below assessed fair value, while paying an annual dividend of IDR 125.6074 per share. Forecast earnings growth of about 13.9% a year and Q1 2026 net income of US$90.45m on US$929.56m of revenue provide a clearer earnings base to work from, even though margins have softened and the dividend record is uneven. The trade off is higher funding risk, modest forecast returns on equity and highly illiquid shares, which means investors who are comfortable with these risks may want to look more closely at how the gas network, valuation and dividend profile fit together.

Perusahaan Gas Negara (Persero) looks like a valuation story investors have not fully priced, with gas network cash flows and an 8.3x P/E sitting beside higher funding risk and an uneven dividend record, so the 2 key rewards and 2 important warning signs (1 is major!)

The three stocks covered here are just a starting point. The full Defensive Dividend Stocks screener surfaces 15 more companies in utilities, consumer staples and healthcare that pair strong dividend scores with low volatility and steady cash flow profiles through the Defensive Dividend Stocks screener. Use Simply Wall St to identify and analyze the specific catalysts, risk flags and dividend narratives that matter most to you so you can focus on the defensive income ideas that best match your conviction.

Take Control of Your Investment Journey

If Perusahaan Gas Negara (Persero) or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.