When contemplating which shares to purchase in 2025, I’ve grow to be more and more involved concerning the uncertainty forward. From rate of interest fluctuations in Europe to commerce tariff threats within the US, markets look set for a rocky yr.

Certain, when the financial system is robust, it will possibly pay to contemplate riskier progress shares. However as a risk-averse investor, the present atmosphere has drawn me to contemplate the advantages of defensive shares. With gradual progress, these shares might seem much less enticing however are normally extra secure. I’m pondering client items, healthcare, and utility shares as they continue to be in demand even when the financial system falters.

With that in thoughts, I feel the next shares are price contemplating. I already personal them and plan to purchase extra because the yr progresses.

Shopper Items

British American Tobacco (LSE: BATS) has skilled volatility of just one.09% over the previous month. It’s additionally a strong and dependable dividend big and a prime 10 constituent of the FTSE UK Excessive Dividend Low Volatility Index (as of December 2024).

Its yield seems to be excessive at 8% however, in contrast to some others, this isn’t attributable to a falling price. The truth is, the inventory is up 26% previously yr. What’s extra, its dividends have been growing constantly for over 20 years. 

Nevertheless, it’s truthful to say that tobacco is controversial and would possibly face a questionable future. Though it’s working onerous to transition to much less dangerous smoke-free merchandise, there’s no assure this technique will work. More and more strict rules may derail its progress.

Based mostly on future money circulation estimates, it’s buying and selling at 54% beneath truthful worth with the common 12-month forecast concentrating on a 9.7% price enhance.

Utilities 

Nationwide Grid (LSE: NG.) is one other strong dividend inventory with low volatility. Because the core provider of fuel and electrical energy to the UK, it’s nicely positioned to keep up regular income. 

The inventory has weathered earlier market dips comparatively nicely. Over the previous twenty years, it’s up 158% — an annualised progress of 4.85% per yr. It additionally has a 5.4% yield and skilled just one.33% volatility over the previous month.

But it does face challenges. Balancing the necessity to provide low-cost power whereas assembly carbon-reduction objectives has confirmed tough, pushing it into debt. It must discover a option to stability these necessities with out risking losses.

Earnings are anticipated to fall to 71p per share within the subsequent full-year outcomes. Regardless of this, the common 12-month price goal envisions a 23.4% rise.

Healthcare

AstraZeneca (LSE: AZN) is among the most nicely established UK healthcare corporations.

It’s barely extra unstable than others, at 1.48% previously month. Throughout Covid, it skilled unusually excessive progress and has since gone via a number of corrective durations. If faces dangers from an ongoing authorities probe in China and medical trial setbacks that would threaten income.

Traditionally, long-term price progress has been good, growing at an annual fee of seven.4% since 2005. It’s additionally a dependable dividend payer though the yield is at present low, at solely 2%.

Analysts anticipate earnings to rise to £6.59 per share within the subsequent full-year outcomes, up from £5.70 in 2003. The typical 12-month forecast predicts a 28% enhance in price, with probably the most bearish analyst anticipating solely a 0.42% loss.