With geopolitical risks, bond market worries, and concentrated bets on AI in the headlines, many investors are looking for steadier ground. Defensive Dividend Stocks bring together companies in areas like consumer staples, utilities, and telecommunications that currently offer consistent dividends and solid balance sheets. These stocks are exposed to the same global pressures as the rest of the market, yet their business models can sometimes absorb shocks differently. This article walks through 3 stocks from that Defensive Dividend Stocks screener that appear positively positioned against today’s news backdrop and explains what that could mean for your portfolio decisions.

Consolidated Edison (ED)

Overview: Consolidated Edison is a regulated utility that delivers electricity, gas, and steam to homes and businesses across New York City, Westchester, and nearby regions, serving millions of customers through an extensive grid of overhead and underground networks. The company also invests in electric and gas transmission projects that support the wider US energy system.

Operations: Consolidated Edison generates the bulk of its US$17.2b in revenue from its New York business, led by CECONY electric at about US$11.8b, CECONY gas at US$3.4b, and CECONY steam at US$0.9b, with smaller contributions from Orange and Rockland and transmission.

Market Cap: US$40.4b

Consolidated Edison stands out in the current news backdrop as a regulated utility with relatively steady earnings and dividends at a time when Jamie Dimon is flagging geopolitical and bond market risks, and AI heavy sectors look crowded. The stock trades on a P/E below the US market and below an estimated fair P/E. Analysts currently see only modest upside and forecast mid single digit earnings growth, which may appeal to investors who prioritize stability over rapid expansion. There are trade offs, including weaker free cash flow coverage of the dividend, high reliance on external borrowing, and an 8.4% ROE that is not especially high. Board and management depth, together with a long operating history in a critical region, are additional factors investors may weigh against those funding and cash flow risks.

Consolidated Edison’s steady earnings profile and lower P/E can look like a simple income story. However, the real trade off sits deeper in its funding and payout profile. Get the 3 key rewards and 2 important warning signs (1 is major!)

National Grid (LSE:NG.)

Overview: National Grid is a UK based utility that owns and operates high voltage electricity networks and gas pipelines, delivering power and gas to households and businesses across England and Wales, parts of the Midlands and Southwest, South Wales, New England, and New York, along with some energy related commercial activities.

Operations: National Grid generates most of its revenue from the US, with £7.6b from New York and £4.2b from New England, alongside £2.9b from UK Electricity Transmission, £1.9b from UK Electricity Distribution, £1.1b from National Grid Ventures, and smaller contributions from other activities.

Market Cap: £59.2b

National Grid is involved in a large scale grid upgrade, with plans to invest tens of billions of pounds into networks on both sides of the Atlantic as electricity demand rises from data centers, AI, and electrification. Earnings and margins have recently improved. Analysts expect revenue and earnings growth to continue, helped by new rate agreements and a growing regulated asset base. At the same time, the company carries meaningful debt, dividend coverage by free cash flow is tight, and future returns still depend on regulatory decisions and project execution. For investors who want a higher yielding utility with growth projects tied to energy transition, this mix of opportunity and risk may warrant a closer look.

National Grid’s large grid investment program, tighter free cash flow, and reliance on regulators create a story that appears simple on the surface. The real signal sits inside the 3 key rewards and 2 important warning signs (1 is major!)

Sempra (SRE)

Overview: Sempra is a regulated utility group headquartered in San Diego that supplies gas and electricity to large parts of Southern and Central California, runs a major power transmission and distribution network in Texas, and owns energy infrastructure in North America and Mexico that supports access to cleaner energy. Its operations span local utility service, long distance transmission, and liquefied natural gas export projects.

Operations: Sempra generates most of its revenue from Sempra California at about US$11.6b, alongside around US$2.0b from Sempra Infrastructure, with a small offset from intersegment eliminations.

Market Cap: US$58.6b

Sempra stands out in a market worried about geopolitical shocks, bond risks, and crowded AI trades because it combines a regulated utility base with exposure to long term themes like Texas electrification and LNG exports. Management highlights heavy grid investment, large AI related power demand through Oncor, and LNG projects such as ECA and Port Arthur. At the same time, a high P/E, weaker interest cover, dividends not fully backed by free cash flow, LNG project execution, wildfire liabilities in California, and activist pressure around an Oncor spin off all introduce meaningful risk that investors need to weigh carefully.

Sempra’s mix of regulated grids and LNG growth stories can look straightforward, yet the real tension sits in how these projects and risks connect. Read the 1 key reward and 4 important warning signs (1 is major!)

The three stocks covered here are only a starting point, with the full Defensive Dividend Stocks screener surfacing 29 more companies that share similarly compelling income and balance sheet stories through the Defensive Dividend Stocks screener. Use Simply Wall St to identify, filter, and analyze the specific catalysts, dividend profiles, and risk factors that matter most to you so you can focus on the highest conviction ideas for your portfolio.

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If Sempra 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.