With worries about heavy US government debt, policy missteps and a possible AI-driven market correction, many investors are rethinking how much risk sits in their portfolios. Defensive dividend stocks can offer a different kind of anchor, focusing on companies that aim to keep paying shareholders even when headlines turn stressful. This article walks through three stocks from a Defensive Dividend Stocks screener that appear more directly exposed to these macro risks. It explains why some investors see them as potential income stabilisers when markets are volatile, and what to watch closely before deciding whether they fit your own approach.

Lamb Weston Holdings (LW)

Overview: Lamb Weston Holdings is a US-based food producer that focuses on frozen potato products and appetizers, supplying quick service and full-service restaurants, retailers, and foodservice distributors worldwide under brands such as Lamb Weston, Grown in Idaho and Alexia, as well as private labels.

Operations: Lamb Weston generates about US$4.3b in revenue from North America and around US$2.2b from International operations, giving it a sizeable global footprint across foodservice and retail channels.

Market Cap: US$6.2b

Investors looking at Lamb Weston in the context of rising US debt risks and concerns about an AI driven equity bubble may be drawn to its consumer staples profile, global reach and a dividend yield of 3.37%. The story is not one sided though: recent earnings have declined 18.2% year over year, margins are under pressure from competitive pricing and inflation, and the company carries a high level of debt with a large recent loss of US$130.5m. At the same time, cost savings plans, activist pressure for better efficiency, buybacks and ongoing dividend payments create a notable tension between perceived undervaluation and the real business risks still playing out.

Pressure on earnings, margins and debt suggests Lamb Weston’s story is still in flux, yet the income and capital return angle feels only half understood. To explore this further, start with the 3 key rewards and 2 important warning signs

Brown-Forman (BF.B)

Overview: Brown-Forman is a global spirits company behind brands such as Jack Daniel’s, Woodford Reserve and Herradura, producing and selling whiskey, tequila, rum and other alcoholic drinks to retailers and distributors in the US and many international markets. It also earns revenue from used barrels, bulk whiskey and wine, and contract bottling services.

Operations: Brown-Forman generates about US$3.9b from beverage alcohol consumer products, with around US$1.9b from the United States and the rest spread across markets such as Germany, Mexico and Australia.

Market Cap: US$12.8b

Brown-Forman attracts income focused investors who want exposure to a consumer staples business that has a long history in spirits, a 3.3% dividend yield and brands that still carry weight globally. The company is working to grow higher priced products and emerging markets, even as recent revenue and profit trends have softened and demand in key developed markets looks less certain. With meaningful debt and slower earnings forecasts than the broader US market, Brown-Forman may be viewed as a defensive stock with trade offs between quality, growth and balance sheet risk that are not fully captured by recent share price moves.

Brown-Forman’s premium spirits story, steady 3.3% yield and slowing earnings forecasts hint at a more complex trade off than the share price alone suggests; the 3 key rewards and 1 important warning sign could reveal what the market is missing

Lassonde Industries (TSX:LAS.A)

Overview: Lassonde Industries is a Canada based food and beverage company that produces ready to drink juices, fruit snacks, sauces, soups, broths and some alcoholic drinks, sold under a wide range of brands into supermarkets, convenience stores, foodservice outlets and other institutional customers in North America and abroad.

Operations: Lassonde generates about CA$2.9b from Beverage and Specialty Food Products, with roughly CA$1.6b from the United States, CA$1.3b from Canada and a small contribution from other markets.

Market Cap: CA$1.5b

Lassonde Industries catches the eye as a defensive dividend stock because it sits in everyday food and beverages, reports high quality earnings and has been reaffirming sales ambitions of up to CA$3b by 2026, even as many investors worry about debt heavy governments and an AI centered market correction. Earnings recently improved alongside firmer profit margins, helped by investments in local production, cost efficiency and brands like G Hughes that lean into zero sugar and health focused trends. The company still faces declining juice categories, leverage moving toward 2 to 2.5 times EBITDA and stiff competition. For investors weighing resilient cash flows against these pressures, Lassonde’s pricing discipline and foodservice expansion may be more important than headline valuation alone suggests.

Lassonde’s pricing power, healthier margins and everyday food focus suggest the story may be quietly shifting from defense to controlled expansion, but the real tension between its growth path and balance sheet only shows up in the analyst forecasts for Lassonde Industries

The three stocks here are just a starting point, as the full Defensive Dividend Stocks screener surfaces 15 more companies with similar income profiles and storylines around stability, payout discipline and macro resilience. You can use Simply Wall St to analyze and filter for the exact catalysts, risks and dividend narratives that matter to you, so you can identify the highest conviction defensive income ideas in one place.

Take Control of Your Investment Journey

If Lamb Weston Holdings 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.