The recent announcement of tariffs by former President Donald Trump sent shockwaves through financial markets, triggering a volatile trading environment and eliciting fears of economic slowdown or recession. As a center-right liberal, I find myself wading through the carnage and emerging with a singular realization: amidst this chaos, there are sectors that defy the odds, offering an oasis of stability to beleaguered investors. In particular, the telecommunications sector stands out as a cohort of stocks that not only survive but often thrive during turbulent times.
Tariffs as a Double-Edged Sword
While tariffs can be a contentious tool in international trade, they generate enough uncertainty to disrupt the financial equilibrium. Trump’s reciprocal tariffs, announced on April 2, have thrown the stocks into a tailspin, as evidenced by a nearly 7% drop in the S&P 500 and a staggering 10% decline year-to-date. It’s clear that the concerns surrounding economic growth are valid; the immediate response of the market speaks volumes. However, as an astute investor, rather than viewing tariffs solely as a burden, one could also interpret them as a chance to strategically invest in sectors that give you an edge. Telecom is a classic example.
Verizon: The Resilient Titan
Taking a closer look at the companies thriving in this storm, Verizon pops out as a remarkable case study. With a commendable 10% appreciation thus far in 2025, it’s clear that Verizon has proven its mettle. When the market is in a downturn, certain defensive stocks like Verizon have demonstrated an exceptional propensity to outperform the broader indices, including the S&P 500. Consider its historical returns: a relative gain of 18% from February 18 to April 8 showcases its ability to weather economic storms.
Moreover, Verizon’s enticing 6.1% dividend yield could capture attention from yield-hungry investors looking for safer havens. The consensus from analysts just adds further weight to the argument, with 11 out of 27 suggesting it’s a strong buy. What’s inviting about Verizon is not just its numbers, but its status as a “top pick” among telecommunications stocks. It’s a performer, and in a world of uncertainty, it offers the kind of stability that investors crave.
SBA Communications: A Towering Investment
Beyond Verizon, SBA Communications offers another avenue for cautious investors. With gains surpassing 12% in 2025, it also eclipsed the broader market performance. The stock’s consistent dividend yield of 1.9% ensures it can attract attention even during market pressures. Analysts express a bullish sentiment, echoing the opinion that tower stocks like SBA Communications have become safe havens for prudent investors. In a world riddled with constant change, having telecom companies that offer reliable infrastructure is invaluable.
Greg Miller, an analyst at Citizens, believes in the potential of SBA Communications, and few would argue with him given the current trajectory of the stock. Widespread analyst optimism further cements its status as an attractive option for those looking to ride through economic storms with a safety net that is telecommunication infrastructure.
Why Investors Should Consider Defensive Stocks
The political landscape often casts a long shadow over market performances. In scenarios like the current one, defensive stocks become important assets in preserving capital. Telecom companies like Verizon and SBA Communications serve as breathing rooms for investors stressed by potential recessions.
Every seasoned investor recognizes the cyclical nature of markets; they flourish, they falter, and they tend to recover. In this cycle, companies in the telecommunications sector often enjoy a relative sanctuary due to their essential service nature. People will always need communication, and as such, these firms boast resilience. Instead of retracting in fear from political maneuvering and its economic implications, savvy investors can pivot, leveraging stock choices that not only weather the storms but thrive in them.
Emotional reactions can lead to hasty decisions, but the seasoned investor knows that in times of volatility, it is often better to embrace the stocks that have a proven track record of bouncing back while offering reliable returns. Navigating this turbulent economic landscape while keeping an eye on telecom stocks like Verizon and SBA Communications might just be the strategy that pays dividends—both metaphorically and literally.