1.Marks & Spencer
MKS (LSE)
Marks & Spencer is set for a recovery following a recent cyber-attack, with improved operational strategies and an attractive valuation that suggests potential upside for investors. Currently, the retailer offers a modest dividend yield of 1.09% and has delivered a robust 1-year return of 6.45%, alongside a remarkable 5-year return of 152.50%. With a C+ analyst rating, it positions itself as an appealing option for those seeking growth in the retail sector.
Pros:
- Attractive valuation offering upside potential
- Strong recovery post-cyber-attack
Cons:
- Market volatility risk
- Dependence on consumer spending
2.GSK
GSK.L (LSE)
GSK stands out as a defensive pharmaceutical stock, offering strong healthcare demand even during economic downturns, making it a top pick among FTSE 100 stocks according to AJ Bell analysts. With a solid dividend yield of 3.30% and impressive returns of 33.12% over the past year, it presents an attractive opportunity for investors seeking reliable income. Despite recent downgrades from SVB Leerink and Deutsche Bank, GSK remains a compelling choice for those focused on financially healthy companies with consistent payouts.
Pros:
- Defensive stock with robust healthcare demand
- Strong momentum and growth over the past year
Cons:
- Potential market fluctuations
- Dependence on pharmaceutical sales
3.Tesco
TSCO.L (LSE)
Tesco, recognized as the UK's largest supermarket, displays resilience with recently upgraded profit guidance, making it an attractive option for defensive investors. With a dividend yield of 3.20% and a solid one-year return of 12.45%, it stands out as a financially healthy choice. Analysts from Bernstein have given it an “Outperform” rating, reinforcing confidence in its performance amidst a competitive retail landscape.
Pros:
- Resilience with upgraded profit guidance
- Strong market position as UK's largest supermarket
Cons:
- Market competition
- Potential impact of economic downturns
Final Words
As you consider your investment options during these uncertain times, remember that stocks like Marks & Spencer may offer resilience against recession. Take time to compare these opportunities and conduct your own research to make informed decisions that align with your financial goals.
Frequently Asked Questions
As of January 2026, Marks & Spencer has a year-to-date return of 10.02% and a one-year return of 6.45%. It has also experienced a 3-month return of -11.01% and a 6-month return of 3.11%.
Marks & Spencer offers a dividend yield of approximately 1.09%, with dividends distributed semi-annually. The next dividend payment is expected to be $1.20.
Marks & Spencer is seen as a retailer poised for recovery, especially following operational improvements post-cyber-attack. Its attractive valuation may offer upside potential, making it a consideration for recession-proof investment strategies.
Defensive stocks, such as GSK, tend to perform well during economic downturns due to consistent demand for healthcare products. They provide a sense of stability in a portfolio, often exhibiting less volatility compared to cyclical stocks.
To assess the risk of investing in Marks & Spencer, consider its market cap, which is $7.28B, and its beta of 1.00, indicating average volatility. Analyzing historical performance, dividend stability, and industry trends can also provide insights into potential risks.
When evaluating recession-proof stocks, consider factors such as consistent demand for their products, strong financial health, and a history of stable dividends. Companies operating in essential sectors, like healthcare and consumer goods, often demonstrate resilience during economic downturns.
