U.S. equities are facing a challenging year, with the S&P 500 slightly in the red. This downturn is primarily attributed to a selloff in mega-cap technology stocks and heightened geopolitical tensions following a recent joint U.S.-Israel mission targeting Iran. As a result, markets are pricing in higher risks, with Brent crude approaching 52-week highs, and the CBOE Volatility Index (VIX) attempting to break out of a prolonged consolidation range.
Amid this volatility, two defensive stocks have gained attention. Pfizer (NYSE: PFE) has risen nearly 9.5% year-to-date, providing a dividend yield of 6.3%, well above the S&P 500 average. Recently, the company reported Q4 2025 earnings per share (EPS) of 66 cents, beating the consensus estimate of 57 cents. In contrast, Energy Transfer (NYSE: ET), a midstream energy company, has surged by nearly 16% this year, benefiting from rising oil prices and offering a substantial dividend yield near 7%. Analysts maintain a Moderate Buy rating on Energy Transfer, which has recently reached new 52-week highs.
