background knowledge
🛡️ Defensive Income Stocks: 15 High-Yield Companies for Investors Seeking Stability and Cash Flow
Screen: Defensive/income-oriented stocks with dividend yields of at least 4%
Universe: 15 companies supplied in the screen
Focus: Business quality, cash-flow characteristics, dividend profile, defensive attributes, key risks and what investors should watch next.
Important: “Defensive” does not mean “low risk.” This group contains very different businesses—from consumer staples and utilities to REITs, midstream partnerships, mortgage REITs and BDCs. The highest yields generally come with substantially higher financial or business risk.
📌 The Big Picture
Investors looking for income often face a difficult trade-off: higher yields frequently come with higher risk.
The stocks in this screen illustrate that perfectly. The dividend yields range from approximately 4.2% to 15.8%, but the underlying businesses are very different.
At one end is Kimberly-Clark (KMB), a traditional defensive consumer-staples company selling everyday necessities such as Huggies, Kleenex, Scott and Kotex. At the other end are Dynex Capital (DX) and Hercules Capital (HTGC), where double-digit or near-double-digit yields come with considerably greater exposure to financing, credit and interest-rate conditions.
Between these extremes are a group of REITs and midstream energy companies whose recurring contractual revenues can make them attractive income vehicles.
The most interesting feature of the screen is therefore not simply the yield. It is the relationship between:
Yield + business stability + cash-flow visibility + leverage + interest-rate sensitivity + market beta.
📊 Defensive Income Screen
| Stock | Company | Yield | Beta | Recent Performance* | Business Type |
|---|---|---|---|---|---|
| DX | Dynex Capital | 15.75% | 0.96 | +45.39% | Mortgage REIT |
| HTGC | Hercules Capital | 9.28% | 0.79 | +2.99% | BDC / Venture Lending |
| WES | Western Midstream | 7.98% | 0.68 | +8.93% | Midstream Energy |
| GLPI | Gaming & Leisure Properties | 7.43% | 0.66 | +3.18% | REIT |
| PAA | Plains All American Pipeline | 7.32% | 0.50 | +24.31% | Midstream Energy |
| ET | Energy Transfer | 6.76% | 0.55 | +9.68% | Midstream Energy |
| VICI | VICI Properties | 6.73% | 0.65 | +0.54% | Experiential REIT |
| EPD | Enterprise Products Partners | 5.93% | 0.49 | +4.30% | Midstream Energy |
| TIMB | TIM S.A. | 5.63% | 0.40 | +0.97% | Telecom |
| NNN | NNN REIT | 5.29% | 0.79 | +0.85% | Net-Lease REIT |
| OKE | ONEOK | 4.95% | 0.73 | +6.10% | Midstream Energy |
| AES | AES Corp. | 4.78% | 0.97 | +2.55% | Utility / Energy |
| KMB | Kimberly-Clark | 4.67% | 0.26 | +26.38% | Consumer Staples |
| ADC | Agree Realty | 4.24% | 0.47 | +5.42% | Net-Lease REIT |
| EPRT | Essential Properties Realty Trust | 4.18% | 0.86 | +5.96% | Net-Lease REIT |
*Performance figures are from the user’s supplied screen and should be treated as the snapshot accompanying the screen, not as a current quote.
🧻 1. Kimberly-Clark (KMB) — The Most Traditional Defensive Stock
Yield: 4.67% | Beta: 0.26
If the objective is to identify the purest defensive company in this list, KMB stands out.
Kimberly-Clark sells products that consumers need regardless of whether the economy is expanding or contracting. Its brands include Huggies, Kleenex, Scott, Cottonelle, Depend, Poise and Kotex. The company says its products reach consumers in more than 175 countries, with its brands holding No. 1 or No. 2 positions in 70 countries. (kimberly-clark)
Why it is defensive
Consumers may postpone buying a new car, smartphone or television during a recession. They are much less likely to stop buying:
- Toilet paper
- Diapers
- Tissues
- Feminine-care products
- Adult-care products
- Household paper products
That creates relatively resilient demand.
What makes KMB particularly interesting
The 0.26 beta in the supplied screen is exceptionally low. Combined with a 4.67% yield, that makes KMB particularly interesting for investors seeking a combination of income and lower equity-market sensitivity.
Key risks
The major issue is not demand collapse. It is margin pressure.
KMB has to manage:
- Pulp and raw-material costs
- Packaging costs
- Wage inflation
- Retailer bargaining power
- Private-label competition
- Currency fluctuations
- Consumer trading-down
Investor profile
Best suited for: Conservative income investors seeking traditional defensive exposure.
StockInsight™ view: ⭐⭐⭐⭐⭐
Defensive quality: Very High
Income: High
Business risk: Low–Moderate
🏢 2. Agree Realty (ADC) — High-Quality Net-Lease Real Estate
Yield: 4.24% | Beta: 0.47
Agree Realty is a REIT focused on acquiring and developing properties leased to major U.S. retailers.
The company reported 2,756 properties across all 50 states, representing approximately 57 million square feet, as of March 31, 2026. (Agree Realty)
The important feature of the business model is the net lease.
Under a net lease, tenants generally assume significant portions of property-level expenses, allowing the REIT to generate relatively predictable rental income.
Why it is defensive
ADC isn’t dependent on selling products to consumers. Instead, it collects contractual rent from tenants.
That creates a potentially attractive combination of:
Real estate + recurring rent + diversified tenants + long lease durations.
What investors should watch
The biggest issue is interest rates.
REITs compete with bonds and other income-producing assets. When Treasury yields rise significantly, investors may demand higher yields from REITs, potentially putting pressure on their valuations.
Higher rates can also increase borrowing costs.
Investor profile
Best suited for: Investors looking for a lower-beta REIT with moderate income and potential long-term dividend growth.
StockInsight™ view: ⭐⭐⭐⭐½
Defensive quality: High
Income: Moderate–High
Rate sensitivity: Moderate
🏢 3. Essential Properties Realty Trust (EPRT)
Yield: 4.18% | Beta: 0.86
EPRT is another net-lease REIT, but its portfolio has an interesting characteristic: substantial exposure to service-oriented businesses.
Its portfolio includes:
- Medical/dental
- Car washes
- Early-childhood education
- Quick-service restaurants
- Automotive services
- Entertainment
- Convenience stores
- Fitness
- Grocery
As of March 31, 2026, 77.2% of cash annualized base rent came from service businesses, according to the company’s portfolio data. (Essential Properties)
Why that matters
Service businesses can provide a different risk profile from traditional retail.
Many tenants provide recurring local services that consumers continue to use across economic cycles.
Risk
The 0.86 beta makes EPRT less defensive from a market-volatility standpoint than ADC.
It also remains sensitive to:
- Interest rates
- Property valuations
- Tenant financial health
- Real-estate financing conditions
StockInsight™ view: ⭐⭐⭐⭐
Defensive quality: Moderate–High
Income: Moderate
Growth potential: Interesting
🏪 4. NNN REIT (NNN) — Diversified Triple-Net Income
Yield: 5.29%
NNN is one of the more interesting REITs in this group because of the breadth of its tenant base.
The company owns approximately 3,711 properties across all 50 states, spanning 37 lines of trade. Its major tenants include 7-Eleven, Mister Car Wash, Dave & Buster’s, Camping World, BJ’s Wholesale Club, LA Fitness and United Rentals. (NNN REIT |)
Why diversification matters
A REIT dependent on one industry can experience serious problems if that industry deteriorates.
NNN spreads its exposure across numerous businesses.
That creates a more diversified rental-income stream.
Key attraction
The combination of:
- 5.29% yield
- National diversification
- Long-term leases
- Multiple tenant categories
makes NNN a compelling income-oriented real-estate holding.
Risk
Some tenants operate in economically sensitive categories such as restaurants, entertainment and discretionary services.
And, like other REITs, NNN is sensitive to interest rates.
StockInsight™ view: ⭐⭐⭐⭐½
Defensive quality: High
Income: High
Diversification: Very High
🎰 5. VICI Properties (VICI) — A Unique Experiential REIT
Yield: 6.73% | Beta: 0.65
VICI is one of the most distinctive companies in the screen.
It owns major experiential properties including Caesars Palace Las Vegas, MGM Grand and The Venetian Resort Las Vegas. VICI currently reports 103 experiential assets, including 63 gaming properties and 40 other experiential properties across the U.S. and Canada. (VICI Properties)
The portfolio encompasses approximately:
- 130+ million square feet
- 66,000 hotel rooms
- 700+ restaurants, bars, clubs and sportsbooks
Properties are generally occupied under long-term triple-net leases. (VICI Properties)
The investment thesis
VICI isn’t betting on individual casino operating profits in the same way a casino operator does.
It owns the real estate.
That distinction is important.
The tenant operates the casino, while VICI collects rent.
Why investors like it
The company combines:
Real estate ownership + long leases + iconic properties + high yield.
Risks
The biggest concern is tenant concentration and exposure to the gaming/hospitality industry.
A severe recession could reduce discretionary spending on entertainment and travel.
StockInsight™ view: ⭐⭐⭐⭐½
Defensive quality: High
Income: Very High
Unique asset quality: Very High
🎰 6. Gaming & Leisure Properties (GLPI)
Yield: 7.43% | Beta: 0.66
GLPI has a similar broad concept to VICI: own gaming real estate rather than directly operating casinos.
That makes it a real-estate income play rather than a pure gaming-stock investment.
Why it belongs in the defensive-income discussion
Casino properties may appear highly cyclical, but the REIT model shifts much of the economic exposure toward contractual rental payments.
The result is a business with potentially more predictable cash flow than a casino operator.
Major risk
The yield is attractive, but investors need to monitor:
- Tenant concentration
- Gaming-sector health
- Property financing
- Interest rates
- Lease renewals
StockInsight™ view: ⭐⭐⭐⭐
Defensive quality: Moderate–High
Income: Very High
Sector concentration: High
🛢️ 7. Enterprise Products Partners (EPD)
Yield: 5.93% | Beta: 0.49
EPD is one of the strongest candidates in the screen for investors wanting high income without directly betting on oil prices.
Enterprise operates an enormous integrated midstream network serving natural gas, NGLs, crude oil, refined products and petrochemicals. Its network includes more than 50,000 miles of pipelines, over 300 million barrels of liquids storage capacity, 27 fractionation facilities and 21 deepwater docks. (Enterprise Products)
Why midstream can be defensive
A producer makes money from selling commodities.
A midstream company primarily makes money from moving, processing and storing those commodities.
That distinction can reduce direct commodity-price sensitivity.
The investment thesis
EPD provides:
- High distribution yield
- Large infrastructure network
- Diversification across energy products
- Recurring fee-based activities
- Exposure to long-term U.S. energy infrastructure demand
Key risk
EPD is an MLP, so its structure and tax reporting are different from a conventional corporation.
Investors also need to monitor leverage, capital expenditure and energy volumes.
StockInsight™ view: ⭐⭐⭐⭐⭐
Defensive quality: High
Income: High
Infrastructure quality: Very High
⚡ 8. Energy Transfer (ET)
Yield: 6.76% | Beta: 0.55
Energy Transfer is one of the largest and most diversified midstream operators in North America.
The company operates approximately 140,000 miles of pipelines and energy infrastructure serving natural gas, NGLs, crude oil, refined products and LNG. (Energy Transfer)
Recent market coverage has highlighted the company’s large fee-based earnings base and continued distribution growth. (Investor’s Business Daily)
Why ET is attractive
The company’s size and diversification provide significant scale.
It isn’t dependent on one pipeline or one commodity.
It operates across:
- Natural gas
- Crude oil
- NGLs
- Refined products
- LNG
- Storage
- Processing
- Export infrastructure
Investment thesis
ET offers a combination of:
6%+ yield + low beta + huge infrastructure footprint + energy-demand exposure.
Risk
The biggest issues are:
- High capital requirements
- Leverage
- Regulatory exposure
- Energy-sector cyclicality
- MLP structure
StockInsight™ view: ⭐⭐⭐⭐½
🛢️ 9. ONEOK (OKE)
Yield: 4.95% | Beta: 0.73
ONEOK is another major midstream company, but unlike the MLPs in this list, it is structured as a conventional corporation.
ONEOK operates approximately 60,000 miles of pipelines covering natural gas, NGLs, refined products and crude oil, with gathering, processing, storage, fractionation and export capabilities. (ONEOK)
Why OKE is interesting
The company describes itself as having primarily fee-based earnings, an investment-grade balance sheet and more than 30 years of dividend stability. (Oneok Anlegerinformationen)
That combination makes OKE particularly interesting for investors who want midstream exposure without the MLP tax structure.
Risk
OKE has significant capital requirements and debt obligations.
Investors should therefore monitor:
- Leverage
- Acquisition integration
- Interest expense
- Pipeline volumes
- Regulatory developments
StockInsight™ view: ⭐⭐⭐⭐½
🛢️ 10. Plains All American Pipeline (PAA)
Yield: 7.32% | Beta: 0.50
PAA is another high-yield midstream name, focused heavily on crude-oil transportation, storage and logistics.
The standout feature in the supplied screen is the combination of:
7.32% yield + 0.50 beta.
That is a very interesting income/risk combination.
Why PAA can be defensive
Pipeline and logistics infrastructure can generate relatively predictable cash flows when supported by contracted volumes.
What makes it different from EPD
EPD is extremely diversified across multiple energy products and infrastructure categories.
PAA has a more concentrated exposure to crude oil logistics.
That can increase sensitivity to oil production volumes and regional infrastructure economics.
StockInsight™ view: ⭐⭐⭐⭐½
Yield: Very High
Beta: Excellent
Diversification: Moderate
🛢️ 11. Western Midstream (WES)
Yield: 7.98% | Beta: 0.68
WES has one of the highest yields in the screen.
Its operations include gathering, compression, treating, processing and transportation of natural gas, along with crude oil, condensate, NGLs and produced water services. Its assets are concentrated in areas including the Delaware Basin, DJ Basin and Powder River Basin. (Western Midstream)
An important point is that WES says a substantial majority of its cash flows are protected from direct commodity-price volatility through fee-based contracts. (Western Midstream – Investors)
Why this matters
That makes WES more of an infrastructure cash-flow story than a pure oil-and-gas price speculation.
2026 development
The company has been expanding its infrastructure, including its Delaware Basin operations and produced-water capabilities. (Western Midstream)
Main risk
The yield is attractive, but WES is an MLP and has more concentrated basin exposure than some of the largest diversified midstream operators.
StockInsight™ view: ⭐⭐⭐⭐½
⚡ 12. AES Corporation (AES)
Yield: 4.78% | Beta: 0.97
AES is substantially different from the midstream names.
It is a global power company with generation, utility and LNG infrastructure. Its generation portfolio includes solar, hydro, wind, natural gas, coal and battery storage. AES reported 34.7 GW in operation and 5.7 GW under construction for 2025, while its renewables portfolio included 17.9 GW in operation and 67 GW in development. (AES)
Why AES is interesting
Electricity demand is becoming increasingly important because of:
- AI data centers
- Electrification
- Industrial reshoring
- Grid modernization
- Renewable-energy deployment
AES specifically identifies technology companies and the growing power requirements associated with the AI economy as part of its opportunity set. (AES)
The catch
AES has a 0.97 beta, considerably higher than most of the other stocks in the screen.
So although electricity is defensive, AES itself should not be considered a low-volatility stock to the same extent as KMB or ADC.
StockInsight™ view: ⭐⭐⭐½
📡 13. TIM S.A. (TIMB)
Yield: 5.63% | Beta: 0.40
TIM provides telecommunications services in Brazil.
Telecom is traditionally considered defensive because consumers and businesses generally continue paying for:
- Mobile service
- Internet
- Data
- Connectivity
even during weaker economic conditions.
Why TIMB is interesting
The 0.40 beta is one of the lowest in the entire screen.
That makes the stock particularly interesting for investors seeking international diversification combined with income.
The additional risk
Unlike KMB, ADC or U.S. REITs, TIMB introduces:
- Brazilian economic risk
- Currency risk
- Regulatory risk
- Emerging-market volatility
So the low beta does not eliminate country risk.
StockInsight™ view: ⭐⭐⭐⭐
💰 14. Hercules Capital (HTGC)
Yield: 9.28% | Beta: 0.79
HTGC needs to be treated differently from the traditional defensive names.
Hercules Capital is a business development company (BDC) focused on lending and financing growth companies.
Its high yield is attractive, but the underlying business is fundamentally a credit business.
Why investors buy it
HTGC can generate significant income by providing financing to companies that may have limited access to conventional bank financing.
That can produce attractive returns.
Why it isn’t a conventional defensive stock
The company’s borrowers can include growth-oriented companies, meaning the credit environment matters.
During periods of:
- Recession
- Tight credit
- Falling valuations
- Higher defaults
BDC portfolios can come under pressure.
Investor conclusion
HTGC is better classified as:
High-income credit exposure
rather than:
traditional defensive equity.
StockInsight™ view: ⭐⭐⭐
Income: Extremely High
Defensive quality: Moderate
Credit risk: Elevated
🏦 15. Dynex Capital (DX)
Yield: 15.75% | Beta: 0.96
DX has the highest yield in the entire screen—and that is precisely why investors need to approach it carefully.
Dynex is an internally managed mortgage REIT investing in mortgage assets backed by U.S. residential and commercial real estate. The company declared a $0.17 monthly common dividend for July 2026. (Dynex Capital, Inc.)
Why the yield is so high
Mortgage REITs operate differently from traditional REITs.
Their earnings depend heavily on:
- Mortgage securities
- Financing costs
- Interest-rate spreads
- Leverage
- Hedging
- Mortgage-market conditions
The major distinction
DX owns financial assets rather than simply collecting rent from physical properties.
That means the company can be much more sensitive to changes in the interest-rate environment.
Investor conclusion
A 15.75% yield should not be interpreted as “15.75% risk-free income.”
It is compensation for a much more complex financial business model.
StockInsight™ view: ⭐⭐⭐
Income: Exceptional
Defensive quality: Low–Moderate
Interest-rate sensitivity: Very High
Dynex itself describes its strategy as generating dividends through investments in high-quality mortgage assets, but also highlights the risks and uncertainties inherent in the business. (Dynex Capital, Inc.)
🧭 How I Would Divide These 15 Stocks
The screen becomes much more useful when the companies are separated into different risk buckets rather than simply ranked by dividend yield.
🟢 Tier 1 — Traditional Defensive Income
KMB
ADC
NNN
EPRT
These are the stocks I would associate most closely with the classic concept of defensive income.
They benefit from relatively recurring demand or contractual rent and generally have less direct commodity exposure.
🟢 Tier 2 — Defensive Infrastructure
EPD
ET
OKE
PAA
WES
This is arguably the most attractive group for investors who want high income plus exposure to essential infrastructure.
The key investment concept is that pipelines, storage facilities and processing infrastructure can generate cash flow without requiring the underlying commodity price itself to rise.
🟡 Tier 3 — Specialized Income
VICI
GLPI
TIMB
AES
These businesses have attractive defensive characteristics but also carry specific risks:
- Gaming
- Hospitality
- Country/currency exposure
- Power markets
- Capital intensity
🔴 Tier 4 — High-Yield / Higher-Risk Income
HTGC
DX
These are primarily yield plays, not traditional defensive stocks.
Their yields are exceptionally attractive, but investors should demand a larger risk premium and monitor the sustainability of distributions much more closely.
📈 The Most Interesting Risk/Reward Combinations
🥇 KMB — Best Traditional Defense
4.67% yield + 0.26 beta
This is arguably the cleanest combination for investors prioritizing capital stability.
🥈 EPD — Best Infrastructure Income
5.93% yield + 0.49 beta
A powerful combination of scale, diversification and relatively low market sensitivity.
🥉 PAA — Best Yield/Beta Combination
7.32% yield + 0.50 beta
The yield is substantially higher than traditional defensive stocks while the beta remains low.
⭐ WES — High Income With Fee-Based Cash Flow
7.98% yield + 0.68 beta
One of the strongest income opportunities in the screen, particularly for investors comfortable with MLP structures.
⭐ VICI — High Yield + Real Assets
6.73% yield + 0.65 beta
The long-term lease structure and high-quality experiential real estate make VICI particularly interesting.
⚠️ DX — Yield Trap Risk Must Be Considered
15.75% yield + 0.96 beta
The yield is extraordinary, but this should be analyzed as a mortgage-finance investment, not as a conventional defensive stock.
🔍 What Investors Should Monitor
For a portfolio built around these stocks, dividend yield alone is not enough.
1. 💵 Dividend/Distribution Coverage
Look for:
- AFFO coverage for REITs
- Distributable cash flow for MLPs
- Net investment income for BDCs
- Earnings/free cash flow for corporations
A high yield is only valuable if the underlying cash flow can sustain it.
2. 📉 Interest Rates
This is particularly important for:
ADC, EPRT, NNN, VICI, GLPI, DX and HTGC
Falling rates can potentially improve financing conditions and make high-yield assets more attractive.
Higher rates can have the opposite effect.
3. 🏦 Leverage
Debt can magnify shareholder returns—but it also magnifies risk.
This is particularly important for:
REITs + MLPs + BDCs + mortgage REITs.
4. 🏢 Tenant Quality
For REITs, investors should examine:
- Tenant credit quality
- Lease duration
- Occupancy
- Rent escalators
- Tenant concentration
- Industry exposure
This is particularly important for VICI, GLPI, ADC, NNN and EPRT.
5. 🛢️ Energy Volumes Rather Than Just Oil Prices
For midstream companies, investors should pay attention to:
- Production growth
- Pipeline utilization
- Natural gas volumes
- NGL volumes
- Export activity
- Contracted versus commodity-sensitive revenue
Companies such as EPD, ET, OKE and WES can remain relatively resilient even when commodity prices fluctuate because much of their business is infrastructure and transportation.
🏆 StockInsight™ Final Ranking
| Rank | Stock | Yield | Defensive Quality | Income Potential | Overall |
|---|---|---|---|---|---|
| 🥇 | KMB | 4.67% | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐ | 9.2/10 |
| 🥈 | EPD | 5.93% | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ | 9.1/10 |
| 🥉 | ADC | 4.24% | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐ | 8.9/10 |
| 4 | PAA | 7.32% | ⭐⭐⭐⭐½ | ⭐⭐⭐⭐⭐ | 8.8/10 |
| 5 | VICI | 6.73% | ⭐⭐⭐⭐½ | ⭐⭐⭐⭐⭐ | 8.7/10 |
| 6 | ET | 6.76% | ⭐⭐⭐⭐½ | ⭐⭐⭐⭐⭐ | 8.7/10 |
| 7 | WES | 7.98% | ⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ | 8.6/10 |
| 8 | NNN | 5.29% | ⭐⭐⭐⭐½ | ⭐⭐⭐⭐½ | 8.5/10 |
| 9 | OKE | 4.95% | ⭐⭐⭐⭐½ | ⭐⭐⭐⭐ | 8.4/10 |
| 10 | EPRT | 4.18% | ⭐⭐⭐⭐ | ⭐⭐⭐⭐ | 8.1/10 |
| 11 | TIMB | 5.63% | ⭐⭐⭐⭐ | ⭐⭐⭐⭐½ | 8.0/10 |
| 12 | GLPI | 7.43% | ⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ | 7.9/10 |
| 13 | AES | 4.78% | ⭐⭐⭐½ | ⭐⭐⭐⭐ | 7.6/10 |
| 14 | HTGC | 9.28% | ⭐⭐⭐ | ⭐⭐⭐⭐⭐ | 7.2/10 |
| 15 | DX | 15.75% | ⭐⭐½ | ⭐⭐⭐⭐⭐ | 6.8/10 |
These scores are a qualitative StockInsight-style assessment, not analyst ratings or investment advice.
🎯 Bottom Line
The best defensive income opportunity isn’t necessarily the stock with the highest yield.
For investors prioritizing capital preservation and dependable income, the most interesting names are KMB, ADC, EPD and NNN.
For investors willing to accept somewhat greater sector and structural risk in exchange for substantially higher income, PAA, ET, WES, VICI and OKE stand out.
And for aggressive income investors, HTGC and DX offer exceptional yields—but they should be viewed as specialized high-income positions rather than core defensive holdings.
The most compelling feature of this screen is therefore the ability to build a diversified income portfolio around several different sources of cash flow:
consumer necessities → contractual rent → energy infrastructure → telecommunications → power generation → specialized credit.
That diversification can be considerably more valuable than simply buying the five stocks with the highest yields.
