In a quick turn of events, the market has thrown on the brakes this week after coming off its strongest rally of 2022. It’s no secret that volatility has been the market’s headline year-to-date, leaving investors frustrated and unsure of what’s on the horizon.  

Nobody has a magic crystal ball that can accurately predict where things head next, but what we do know is that growth stocks typically carry a higher level of risk whenever market sentiment turns south. Just yesterday, the tech-heavy Nasdaq slid more than 2%, while the Dow slid about 0.40%.

Buying popular and innovative high-growth stocks is a very aggressive investing style that has rewarded investors with considerable gains over the last few years. However, amid volatility, blue-chip stocks provide a much higher level of defense, and that’s what we’re here to look at today.

I’ve selected three blue-chip stocks that I believe will give your portfolio a defensive boost amid volatility and a foggy market outlook. They are all three highly-known companies with a stellar track record of excellence throughout decades in the market.

Tyson Foods, Inc

Located in Arkansas and residing in the Consumer Staples Sector, Tyson Foods Inc. (TSN Quick QuoteTSN - Free Report) produces, distributes, and markets beef, chicken, pork, and prepared foods. Companies within this sector generate consistent and reliable revenues due to their products’ persistent demand.

Dividends are a significant benefit of blue-chip stocks, and TSN has that covered with its annual dividend yield of 2.02% and a sustainable 20% payout ratio. Additionally, the king of protein has increased its dividend five times over the last five years, giving it a notable 15% five-year annualized dividend growth rate.  

Tyson’s top line has displayed consistent growth over the last decade, expanding by a considerable 45% since 2013. From 2020 to 2021, the top line climbed by nearly 9% to $47 billion, and the three vital sources of income for Tyson – chicken, beef, and pork – saw sizable revenue growth as well, increasing by 4%, 14%, and 22%, further displaying the persistent demand Tyson products possess.

TSN’s next earnings report is slated to release on May 9^th, and pay attention, as the Zacks Consensus Estimate of $1.91 per share reflects a year-over-year increase of a sizable 43%. Additionally, the company has an average EPS surprise of 32% over its last four quarterly reports, and in its latest quarter, Tyson beat earnings estimates by a notable 50%.

The company’s strategy is to sustainably feed the world with the highest growing protein brands. It has introduced a new three-pillar productivity program in fiscal 2022 that’s on track to achieve $300 to $400 million in productivity savings, and that’s worth noting. With established operations, a sustainable dividend payout ratio, and an ever-persistent demand for its products, Tyson is an outstanding stock that provides valuable defense in a volatile market. TSN is currently a Zacks Rank #1 (Strong Buy).

The Coca-Cola Company

The Coca-Cola Company (KO Quick QuoteKO - Free Report) is the world’s largest beverage company. In addition to its namesake Coca-Cola drinks, a few of its household names include Fanta, Minute Maid juices, Powerade, and Dasani. Coca-Cola resides within the Zacks Beverages – Soft Drinks Industry.  

Not only is Coca-Cola a Dividend Aristocrat, but it is also a Dividend King; 2022 marks the 60^th consecutive annual dividend increase for the company. KO has a 2.8% dividend yield with a payout ratio sitting at 72% of earnings, and the company has a 3.09% five-year annualized dividend growth rate.

The beverage retailer’s top line climbed a notable 17% from 2020 to 2021, and overall, revenue has increased by nearly 13% since 2018. Its largest source of income comes from operations in North America, a segment that saw its net revenue increase 15% from 2020 to 2021. Furthermore, net revenue from its bottling line of business also saw a nice boost, up 14% in the same time frame.

In its latest quarter, KO beat the $0.40 EPS estimate by 12% and reported earnings of $0.45 per share. For its upcoming earnings report on April 25^th, the Zacks Consensus Estimate of $0.57 per share reflects a respectable year-over-year increase of 3.6%, and over its last four quarterly reports, Coca-Cola has an average EPS surprise of 13.5%. Additionally, the current year’s Zacks Consensus Sales Estimate reflects year-over-year revenue growth of nearly 9%.

Coca-Cola’s mission is to refresh the world in mind, body, and spirit while inspiring moments of optimism and happiness through its brands and actions. By being a Dividend King and Aristocrat, KO has fully established itself as a long-term company that’s been tried and tested in the market throughout history. The company is currently a Zacks Rank #3 (Hold).

Exxon Mobil

Exxon Mobil (XOM Quick QuoteXOM - Free Report) is a U.S.-based oil and gas company that is one of the world's largest publicly traded energy companies. Exxon Mobil has been around since 1999 when Exxon Corporation and Mobil Corporation merged.

Like TSN and KO, Exxon Mobil also likes to reward shareholders via dividends. The oil giant has an annual dividend yield of 4.2% and a dividend payout ratio at 65% of earnings. Over the last five years, the company has increased its dividend four times and has an annualized five-year dividend growth rate of 3.1%

XOM’s top line climbed by nearly 60% from 2020 to 2021, and overall, revenue has grown by 17% since 2017. Skyrocketing energy prices have helped XOM shares surge 40% year-to-date, easily outpacing the S&P 500. Additionally, I believe XOM will continue to benefit from the boom in energy prices in the short term as the Russian and Ukraine war persists and plays out.

Notably, XOM reports its next quarterly earnings on April 29^th, and watch out for this one, as the Zacks Consensus Estimate of $2.03 per share reflects a massive 212% increase year-over-year. In its latest quarter, the oil and gas giant beat the EPS estimate of $1.96 by almost 5% and has an average four-quarter trailing average EPS surprise of a respectable 6%.

The company has stellar forecasted earnings growth, a high dividend yield backed by sound financials, and a clear demand for its products and services. These are all reasons why I believe XOM is a tremendous defensive play. The company is currently a Zacks Rank #3 (Hold).