After the AI frenzy, how to prepare for 2026? These four "offense and defense" defensive stocks are worth paying attention to.

After experiencing a significant increase, the technology sector led by artificial intelligence (AI) is moving towards a goal of exceeding a 20% increase for the third consecutive year. At the same time, this prompts investors to ask a familiar question: what's next? The divergence performance of tech stocks in December might be an early signal that the leading force is narrowing, especially in overvalued stocks, and volatility is returning beneath the surface. Without the boost from Micron Technology, Inc.(MU.US) earnings and guidance after market close on Wednesday, the tech sector seemed poised for a second consecutive month of decline. In this environment, the conditions for re-examining defensive sector stocks to balance the risk of tech holdings have matured. Traditional defensive sectors, such as blue-chip pharmaceuticals, regulated utilities, and essential consumer goods, still have a role to play. Quantitative strategist Steven Cress has delved into those quantitative "strong buy" rated stocks that combine durable cash flows, essential services, and key growth indicators, while also considering sector and industry, as well as five-factor scores - valuation, growth, profitability, momentum, and analyst earnings revisions, identifying four high-quality defensive stocks. In a scenario where the tech sector cools down in 2026 and economic growth remains moderate rather than strong, these companies may become the best defensive stocks in the current Beijing Zhidemai Technology entry. 1. Bruker Corporation Feld Infrastructure (BIP.US) - Utilities Sector Bruker Corporation Feld Infrastructure owns and operates a global portfolio of high-quality infrastructure assets, including utilities, midstream energy, real estate, data fields, and private equity. These assets constitute the backbone of the modern economy, often generating predictable cash flows. From a defensive perspective, the company meets requirements in almost all aspects. Its income is largely unaffected by economic cycles, thanks to long-term contracts typically tied to inflation. For income-seeking investors, the company's strong 5.08% dividend yield is an additional advantage, highlighted by its third-quarter performance, which underscores the company's critical strengths. Bruker Corporation Feld Infrastructure's third-quarter funds from operations (FFO) were $654 million, or $0.83 per unit, a 9% year-over-year increase. As noted in its third-quarter earnings conference call transcript, organic growth is at the high end of its target range, due to annual inflation rate increases, growth in network transactions, and returns from capital commissioned in the past 12 months. For income investors, the company aims to use 60-70% of FFO for dividends. Given FFO growth, the company aims for annual dividend growth of 5-9%. The combination of yield, inflation protection, and profit growth makes the company a foundational holding for defensive positioning in 2026. Furthermore, Bruker Corporation Feld Infrastructure focuses on expanding its presence in the data infrastructure field, including hyperscale data centers, fiber optic networks, and telecom towers, which will continue to support its growth over the next year. 2. Iberdrola (IBDRY.US) - Utilities Sector Iberdrola is one of the largest electric utility companies globally, with regulated operations in Europe, the United States, and Latin America. The company engages in power generation, grid operation, and has long been a leader in renewable energy investments. Utilities are one of the longest-tested defensive sectors, and Iberdrola is a prime example. The regulated electricity price structure provides earnings visibility, and electricity demand remains resilient regardless of economic conditions. For investors seeking exposure outside the U.S. market, Iberdrola also offers valuable international and currency diversification. A highlight of its defensive nature is Iberdrola's stable 3.40% dividend yield, along with its profitabil...