2 Healthcare Stocks to Buy in a Bear Market

It might not seem like it, but the S&P 500 flirted with bear market territory earlier this year. It has rebounded nicely since, but it's always worth considering which stocks would be worth buying if we enter a bear market. Turning to the healthcare sector -- which is about as defensive as they come -- is a great idea.

Many healthcare companies perform well, or at least better than most, through good and bad times. With that as a backdrop, let's consider two excellent healthcare stocks to buy in a bear market: Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT).

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1. Johnson & Johnson

Johnson & Johnson is a diversified healthcare leader. The company's business spans innovative pharmaceuticals, where it develops products across a range of therapeutic areas, including immunology, oncology, neuroscience, infectious diseases, and more. Then there is Johnson & Johnson's medtech division, which also spans several areas. The company generates consistent revenue and profits. The business isn't flashy, but it gets the job done.

The demand for Johnson & Johnson's medical products remains fairly high, which enables the company to record relatively strong results even when the economy is weak.

Further, Johnson & Johnson has the highest credit rating available. While some corporations face financial troubles and are unable to fulfill their obligations, that's unlikely to happen to this healthcare giant. Lastly, it is a fantastic income stock. Johnson & Johnson is a Dividend King, a company that has maintained an active streak of at least 50 consecutive years of dividend increases. Johnson & Johnson is at 63. This provides even more evidence that the company can perform well -- and raise its payouts -- through good and bad times, making it a top stock to buy in a bear market.

2. Abbott Laboratories

Abbott Laboratories checks many of the same boxes as Johnson & Johnson. It's a healthcare leader with a business spanning medical devices, nutrition, diagnostics, and pharmaceuticals. The company's diversification enables it to get through challenging times. If one segment suffers, the others pick up the slack. The result: reliable (albeit not exceptional) revenue and earnings growth.

Abbott also has attractive growth prospects, with none more appealing than its work in diabetes care. Abbott's FreeStyle Libre, a franchise of continuous glucose monitoring devices, has been its biggest growth driver for years and is expected to remain so for a while, considering the market remains underpenetrated. Abbott is also seeking new avenues for growth. A recent acquisition will allow it to make waves in the cancer diagnostic market.

Lastly, Abbott Laboratories is also a Dividend King. Its current streak of consecutive payout increases stands at 54 years. It's an excellent stock to buy and hold in case a bear market hits.

Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.