Playing defense with steady stocks that generate income if this sell-off is something bigger

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These names can be good picks if there's more red on the horizon.

Tuesday's market sell-off sticks out like a sore thumb amid this year's rally to all-time highs, leaving traders to wonder if it could be the start of a bigger downtrend. Here's how investors can play defense and generate income. The three major indexes all slid more than 1% each on Tuesday.

Pro screened for defensive names that can offer dividend income. To find these stocks, we used the screener tool available to Pro subscribers to find equities with the following qualities: Trading up on Tuesday despite the broader market retreat A beta of less than 0.9, meaning the stock is less volatile than the overall market A dividend yield above 1% An average price target from Wall Street analysts implying upside of 5% or more Here's the stocks that passed

Pro's screen: PRO readers can save and tweak this screen in their screener tool here . Several utilities made the list. The sector is up about 3% year to date, far underperforming the overall S & P 500. However, utilities and energy are the sole positive sectors in Tuesday's selloff. Sempra is one of the utility stocks in the screen, and analysts see sizable upside potential.

 

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