The combination of tax-loss harvesting, bonus-driven cash flows and small-cap optimism typically make for a bumper month. But somehow, 2026’s already sent ripples of volatility through global markets — and it isn’t even February yet.

From US tariffs and Middle East tensions to the China slowdown and spiking energy prices, it’s hard to know what’s what. Even the most experienced analysts are at their wits end trying to forecast this market.

So how should British investors navigate this maelstrom of unexpected turbulence? 

Stop the ride, I wanna get off!

As a stock market investor, it might seem like a good time to throw in the towel, take profits, and stash all your cash in a pillow. But before you run for the hills, consider this: not all shares are created equal, and some benefit from cast-iron resilience.

So when things get rocky, it’s a good time to look at the sectors that have staying power — and one I really like is utilities. These aren’t flashy tech plays. They’re the boring-but-brilliant builders of Britain’s future, from power grids to water pipes.

With falling interest rates and a net-zero push, they offer reliable dividends and growth that could compound nicely over the next 10-20 years. 

Let’s unpack why they’re worth a look

While US tariffs on steel and aluminium impact manufacturers, UK infrastructure looks well protected. This is largely thanks to domestic supply chains and favourable regulations supporting stable revenues.

With £38bn being fast-tracked into nuclear and grid upgrades, the utilities sector promises a compelling defensive mix of above-average yields and real growth from Britain’s infrastructure push.

National Grid‘s the most likely to benefit from this headwind, but investors seeking growth with defensive characteristics should also consider SSE (LSE: SSE). Its yield is currently low, at only 2.7%, but it targets dividend increases of 5%-10% annually through 2026-27. Plus, it’s well-positioned as a ‘golden age’ renewable play with moderate-to-high earnings growth forecast through the decade.

Deutsche Bank expects earnings to almost double by the early 2030s, noting how recent strong performance is supported by well-regulated, inflation-linked UK assets. The shares are up 31% in the past six months alone.

But all this renewable expansion, net-zero focus and grid modernisation isn’t cheap. Much like National Grid, SEE’s balance sheet looks strained, with debt outweighing equity by 1.35 times. For now, interest coverage is sufficient — but increasing costs or regulatory price changes pose a risk.

If debt becomes a priority, dividend growth might slow.

Final thoughts…

Utilities present a strong case for being the most resilient stocks in 2026. Healthcare and consumer staples are also strong contenders, but for stable, regulated cash flow, utilities are hard to beat.

SSE’s defensive model and dividend trajectory make it appealing, and the valuation looks attractive at 9.4 times forecast earnings. Although political uncertainty around post-2029 net-zero policy could temper growth, it’s well-shielded from tariff threats and global unrest

For long-term investors hoping to reduce risk without exiting the market, defensive stocks like SSE are worth a closer look.

The post Are utilities the most resilient stocks to buy in 2026? appeared first on The Motley Fool UK.

The intensifying tug-of-war over Greenland took a new turn over the weekend. US President Trump threatened to slap tariffs of 10% on several European countries (including the UK) that oppose his planned takeover of the territory. These will come in on 1 February, and rise to 25% in June, he said.

Tariff uncertainty rocked global stock markets in 2025. Yet it didn’t stop the FTSE 100 rising more than 20% over the course of the year. And 2026 could be another blowout year even if trade tensions intensify.

However, it might pay for investors to consider protecting themselves from any market volatility. In this regard, Fresnillo (LSE:FRES) and SSE (LSE:SSE) could be top stocks to take a close look at.

Here’s why.

Leading the index

Gold stocks are typically the greatest beneficiaries of geopolitical and macroeconomic upheaval. With the Greenland saga, we have both.

And so Fresnillo shares are currently the FTSE index’s biggest riser today (19 January). Up 4.3%, they’ve been driven by both gold and silver prices touching new peaks.

Buying gold shares doesn’t guarantee a positive return when metal prices increase. Operational issues at the exploration, mine development and production phases — which are not uncommon — can see these companies sink in value.

But with seven working mines and many early-stage assets Fresnillo’s enormous scale substantially reduces this threat. If one project encounters problems the impact on share price and dividends can be negligible.

Furthermore, the comnpany’s scale enables it to better capitalise on the precious metals surge than most other producers. It’s the world’s largest silver producer, and Mexico’s leading gold digger by volume.

At £39.04 per share, Fresnillo’s share price trades on a forward price-to-earnings growth (PEG) ratio of 0.5. At below 1, this suggests the miner still offers tremendous value today.

Another FTSE 100 riser

Electricity producers like SSE are other classic safe havens in uncertain times. Energy demand remains broadly unchanged across the economic cycle, including when tariff tensions explode.

Reflecting these defensive qualities, SSE’s share price touched fresh record peaks this morning.

It’s true that investing in renewable energy stocks comes with added danger for investors compared with other energy producers. Power output (and by extension profits) are very much at the mercy of Mother Nature.

However, SSE’s large asset portfolio — along with its fleet of gas-fired plants — can significantly reduce the impact of localised issues. On balance I see the company’s focus on green energy as a net positive for growth, given the UK’s ultra-supportive renewables policy.

And SSE may receive an added boost if trade tariffs encourage the Bank of England to cut rates harder. Lower interest rates are favourable for the FTSE 100 firm’s asset values. They also help reduce borrowing costs.

The post 2 FTSE 100 shares to consider as tariff threats explode! appeared first on The Motley Fool UK.

A large part of this is targeting the right sort of UK shares. Here are some growth stocks that could help boost portfolio returns.

Targeting specific sectors

One of the main ways to help increase a portfolio’s value is by investing most of the money in growth stocks. Typically, these are companies in rapidly-expanding sectors or firms that are innovating and becoming leaders in their fields.

For example, technology. We’re seeing this sector continue to push boundaries, particularly with artificial intelligence (AI). I think this theme hasn’t finished by any stretch, so anticipate long-term gains for the leaders in this area. Granted, most of these candidates are listed in the US. But there are plenty of UK stocks making use of AI, helping to drive efficiencies and boost overall profitability.

IT service and transformation providers Kainos and Softcat are both embedding AI into client solutions.

Another major area is healthcare, driven by an ageing population. I feel health tech adoption will sustain healthcare demand and innovation going forward, with several UK players well-positioned to take advantage. This includes Primary Health Properties and Smith & Nephew.

Heading for a million?

In theory, let’s assume an investor had a £10k lump sum to put to work, and could afford £1,000 a month to buy high-growth shares from promising sectors. Over time, the portfolio could grow to 10-20 companies. I’ll assume a long-term annualised growth rate of 10%. In this scenario, by year 22, the investment pot could be worth over £1m.

Of course, forecasting this far in advance is difficult. If my sectors underperform, or even if the particular stocks don’t rally as anticipated, it could take much longer and an investor could even lose money.

Another example to consider

Renewable energy, as part of the energy transition, is a key theme for the future. Although it’s gone cooler in previous years, I feel momentum’s starting to return. One stock that I think is well placed is SSE (LSE:SSE).

At the core of the investment case is the SSE Renewables division. This is one of the UK’s largest owners and developers of onshore wind, offshore wind and hydro assets. At the same time, I think investors underappreciate SSE’s exposure to electricity networks.

It has a large transmission and distribution business, providing steady revenue that’s only likely to grow with time. Earlier this month, the regulator Ofgem approved a £28bn funding package for the total network for the period between 2026 and 2031. This is another reason I think the stock could be a good long-term addition to a portfolio.

In terms of risks, it is subject to the regulator in other ways, including pricing power. This can be seen as a negative, and could restrict the potential for large profits in the future.

Even with this, I think it’s one of a number of stocks that could be used to turbocharge a strategy for a seven-figure portfolio.

The post Considering these UK shares could help an investor on the road to a million-pound portfolio appeared first on The Motley Fool UK.

Looking on the bright side

Even after gains in 2025, the FTSE 100 remains cheap relative to global peers. A good example of this is the price-to-earnings ratio for the index versus the S&P 500. At 18.2, the FTSE 100 is significantly cheaper than the 30.83 figure for the US stock market. Therefore, it could continue to rally in the coming year as investors see it as undervalued.

Another factor is further interest rate cuts from the Bank of England’s committee. The team is widely expected to reduce the base rate by 0.25% tomorrow (18 December). Next year, analysts are pencilling in at least two more rate reductions. This should help the FTSE 100 rally. This means businesses can borrow money at lower rates, helping to fuel growth. It also reduces the incentive for people to keep money in savings accounts. Investors then likely look for places to hunt higher returns, such as the stock market.

Finally, even if the global economy underperforms or people get spooked by US midterm elections, trade tensions or other factors, the FTSE 100 could still do well. It’s home to many defensive stocks from sectors like utilities, telecoms and consumer staples. Investors tend to buy these shares when they get worried.

A case in point

One example of a stock that could be considered is SSE (LSE:SSE). The stock is up 28% over the past year, helping to guide the index higher. Yet it can also be seen as a defensive stock.

It makes money via transmission of electricity to end users, along with a growing renewables arm with elements like offshore wind farms. It has done well in the past year because in a volatile macro environment, investors have looked towards companies with predictable returns. SSE has ticked this box due to having long-dated earnings visibility.

Looking forward, it’s working on a multi-year capex plan focused on networks and renewables. In theory, this should ultimately translate to higher earnings further down the line, which is why investors like it. Further, even if next year brings volatility, SSE should see fairly constant demand, as the utilities it provides are essential to many. Therefore, it could do well (and help the FTSE 100 as a whole) even if 2026 offers a bumpy road.

But there are risks as it’s at the mercy of the regulator in terms of price caps or other restrictions. As a result, this could hamper it in the future, depending on what changes are made.

Even with those concerns, I think it’s a stock for investors to consider as part of a play for further gains in the UK stock market next year.

The post Up 17% this year, here’s why the FTSE 100 could do the same in 2026 appeared first on The Motley Fool UK.

But how much does an investor need to save before they can get started? While no specific number exists, it is worth calculating a realistic estimate.

Counting coins

These days, the barriers to entry on the stock market are far lower than in the past. Investors no longer need a large initial investment or an expensive broker.

With as little as £5, a beginner can start buying penny stocks or fractional shares with a free mobile trading app. But to earn a meaningful passive income would require a much larger lump sum, or a dedicated strategy to build up to one.

Say, for instance, a portfolio returns on average 10% a year. It would need £100,000 invested just to return £10,000 a year — less than £1,000 a month. So as we can see, to earn meaningful passive income requires a fairly hefty investment.

It’s never too late to start

A 50-year-old without notable savings might feel they have no chance of ever achieving their goals. But many people underestimate the miracle of compounding returns.

Let’s say the investor has a £5,000 initial investment and can afford to contribute £300 a month. Even if the portfolio achieved only a moderate 7%-8% average return, it could grow to £176,000-£200,000 in 20 years.

The trick is to formulate a realistic strategy, stick to it, and be patient. Trying to rush wealth generation by investing in risky stocks is a surefire way to suffer losses.

A balanced approach

Markets go through cycles of growth and depression and it’s near impossible to time them accurately. A popular strategy to combat this is by spreading risk across a range of different investment types.

One stock for investors to consider is the gas and electricity supplier SSE (LSE: SSE), exhibiting several benefits for a portfolio. With a 3% dividend yield and a share price up 52%, it’s delivered a total return of 96% in five years. That equates to an annualised return of 14.4% a year.

As a regulated utilities company, it also adds defensiveness to a portfolio. Even during recessions, people need gas and electricity, so it offers more stable returns. This is critical when targeting passive income.

The recent announcement of a £33bn five-year network upgrade plan led to a surge in share price, adding growth credentials to the stock. Overall, it ticks all the boxes for a balanced growth- and income-orientated strategy.

However, it still faces execution risk in its upgrade plan, not to mention the potential cost of any regulatory changes. It already holds a lot of debt, so any dip in earnings could delay expansion.

The bottom line

For most investors, targeting passive income is a journey rather than once-off investment. The sooner it’s started, the better — but it’s never too late.

The key is building a balanced portfolio, sticking to the monthly contributions, and remaining calm when markets wobble.

The post How much cash is enough to start earning passive income from the stock market? appeared first on The Motley Fool UK.

Planning for the future

I’m referring to SSE (LSE:SSE). The utility company’s now up 30% in the past year, with over half of those gains coming last week. The main driver for the move was the announcement of a £33bn five-year investment plan, which focused heavily on its regulated electricity networks in the UK.

This is significantly larger than its previous investment target, signalling a shift to a more growth-oriented infrastructure business. The implications down the line are also positive. Larger-scale assets ultimately should provide more stable and predictable cash flows. This is appealing for income investors, who would feel more comfortable with the sustainability of payments.

The move in the share price reflects the optimism from market participants. I think it is also a good sign because, at a time when there are plenty of clouds over how the UK’s performing, SSE’s clearly pushing ahead with a long-term commitment to UK operations.

However, it should be noted that more debt is likely to be taken on to help part-fund the project. With any plan of this magnitude, there’s also execution risk.

A good defensive share

At a time when other FTSE 100 stocks are falling, the move last week highlights again why SSE can be seen as a defensive stock. It provides essential services to consumers and businesses via electricity distribution and energy generation. This means demand stays relatively stable, even during uncertain times like now.

Even with people likely cutting back on large purchases due to potential tax hikes looming, paying for electricity is going to be one of the last things to be cut.

A significant part of SSE’s business comes from regulated electricity networks in the UK. This means prices are closely monitored by regulators, with revenue tied to long-term asset bases (like those the business is investing in right now). So the chance of a sudden drop in output’s doubtful.

Of course, being so closely tied to regulatory bodies is a risk. Any changes made could negatively impact SSE, with management lacking the power to influence this.

Finally, SSE might appeal to some due to the dividend. Over the past five years, the yield here has averaged around 4%. Currently, it’s fallen to 2.9%, but this is due to a sharp 19% shard price spike last week. It has paid a consistent dividend for over two decades, so even during tough times, people can count on receiving some income.

Overall, I think SSE could continue to do well as investors digest the recent news and feel it’s a share worthy of consideration.

The post Up 19% in a week, this FTSE 100 defensive stock’s defying the market sell-off appeared first on The Motley Fool UK.

But with the rise of artificial intelligence and tools like ChatGPT, I decided to have a bit of fun and ask the bot what it thinks are the best stocks to buy right now. And it came up with some… interesting suggestions.

British infrastructure

First on ChatGPT’s list is the energy infrastructure enterprise, SSE (LSE:SSE). The AI believes the company is well positioned to capitalise on the UK transition towards renewables with a substantial mid-cycle investment pipeline that could offer investors both growth as well as income.

Investing in utility stocks is a well-known defensive strategy. After all, sectors like energy infrastructure enjoy constant demand regardless of economic conditions. And that can make these businesses quite resilient during downturns.

However, ChatGPT failed to mention some pretty substantial risks. Being a regulated enterprise, SSE has next to no pricing power. And with its earnings being capped despite rising capital expenditures over the years, the balance sheet has been flooded with debt.

Higher interest expenses combined with flat revenue growth have squeezed margins and sent earnings tumbling. That could soon change if management’s new strategy and growth-focused infrastructure investments prove successful. But dividends have already been slashed once. And if regulatory limits or poor operational execution result in missed targets, SSE shares could be in for a rough ride.

More energy opportunities

ChatGPT seemingly wanted to continue the theme of energy-focused investments, because its second pick for stocks to buy was BP (LSE:BP.).

Again, it highlighted the business for its structural importance to the global economy and its defensive traits as an investment. It even highlighted the firm’s increasing investments in renewable energy projects, allowing the company to benefit from decarbonisation trends.

The only problem is, the AI made no mention of the fact that BP is actually slowing its renewable capex and refocusing the company on fossil fuel projects. Similarly, there was no mention of the company’s high leverage or the fact that the company’s price-to-earnings ratio is a staggering 62.9. For reference, the market average is closer to 15.

To be fair, this business has reported some strong financials lately. In its latest third-quarter trading update, reduced capital expenditures have helped grow profits by 48% from $2.3bn to $3.5bn across the first nine months of 2025. While impressive, that’s still not enough to cover the near-$3.8bn in dividends paid during the period.

The bottom line

Both SSE and BP have some promising potential. But they’re surrounded by significant risks that ChatGPT either overlooked or simply ignored. And personally, I don’t think either of these stocks ranks as a top candidate for further research right now, considering other fantastic buying opportunities to explore. ChatGPT is certainly a fun tool. But at the end of the day, investors seeking the best stocks to buy need to do their own research and rely on human-verified information. Otherwise, they could risk making some costly mistakes.

The post I asked ChatGPT to pick the 2 best stocks to buy now, and it said… appeared first on The Motley Fool UK.

With this in mind, here are three FTSE 100 dividend shares to consider as dangers to the global economy grow.

SSE

Utilities are among the most secure passive income payers in tough times. Take SSE (LSE:SSE) as an example.

People and businesses don’t suddenly stop using electricity when economic crises come along. Kettles still need boiling, lights turning on and electric cars charging. So these companies’ revenues and cash flows remain broadly stable from year to year, providing the lifeblood for steady dividends.

SSE does have notable debt that investors should consider. But with its net debt to EBITDA (earnings before interest, tax, depreciation, and amortisation) ratio of four times, my view is that its balance sheet is in decent shape.

There is some risk here, in that SSE prioritises wind power above other sources. This creates the danger of poor power generation in calm conditions. But on balance, I think it’s an attractive lifeboat in turbulent times.

The forward dividend yield is a healthy 3.8%.

Alliance Witan

Investment trust Alliance Witan (LSE:ALW) has the strongest dividend growth record on the FTSE 100 index. Shareholder payouts have grown for 58 straight years, through financial system crashes, pandemics, and wars.

This reflects the trust’s diversified portfolio, which spans different regions and industries, including defence sectors like utilities, healthcare, and consumer staples. It’s a quality that reduces risk across the portfolio and helps smooth out dividend volatility.

Alliance Witan’s brilliant dividend stability also reflects its ability to retain earnings during good years. As an investment trust, it’s permitted to hold back up to 15% a year, which it can draw upon for dividends in tougher times.

Its large weighting of global shares leaves it vulnerable to currency risk. But I still believe the trust (which yields 2.3%) is worth serious attention.

Segro

Real estate investment trusts (REITs) can also be rock-solid dividend stocks during market crashes.

Whatever the weather, they must pay 90% of annual earnings from their rental operations to shareholders. That’s in exchange for juicy tax advantages.

Rent collection and occupancy issues can still spring up, though, to impact profits and by extension dividends. But Segro‘s (LSE:SGRO) large and diversified portfolio spanning several European countries and almost 1,400 tenants helps spread the risk.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

What’s more, Segro has its tenants locked down on long, multi-year contracts, providing excellent earnings visibility across the economic cycle. It has a weighted average unexpired lease term (WAULT) of 7.1 years to break, and 8.2 years to expiry.

The REIT has raised dividends for the last 11 years on the spin. Its forward dividend yield is 4.7%.

The post Worried about a crash? 3 rock-solid FTSE 100 dividend stocks to consider appeared first on The Motley Fool UK.

The self-titled “UK’s clean energy champion” will be building what is expected to be the world’s largest offshore wind farm. It will provide enough power for the annual energy needs of Scotland twice over! 

Britain’s solar production reached a new high in 2025 (a third higher than 2024) and Net Zero 2050 inches ever closer. Could this backdrop make the FTSE 100 energy company a terrific stock to buy? Is the share price of the country’s brightest green energy firm set to rise from here on out? Should I buy SSE shares?

Big targets

A brand spanking new windfarm does sounds promising. But the SSE share price moved about as much as one of its turbines on a windless day. That is to say, it didn’t really move. The share price has been more or less level for about 10 years now, too. 

SSE might be leading the world in its investment in green energy infrastructure. But, the markets aren’t enamoured with the stock. All this investment is costly, too. SSE has high debt and a rebased dividend, both of which make this stock look less than attractive. Its forward dividend yield of 5.24% is competitive with other FTSE 100 companies. But, it’s some way below what I’d hope to achieve as a total return. 

Analysts’ forecasts offer hope for the share price with an average target that’s 33.2% higher over the next 12 months. One analyst is predicting a 51.4% increase!

A buy?

Personally, I’m not buying stocks for the returns over a year. Looking longer term, though, the bigger question is that of wind’s role as an energy source. If offshore windfarms can slot into a country’s energy supply, then we might see SSE start to roll out the technology on a wider scale. 

The firm has already expanded to other regions such as the SSE Airtricity division in Northern Ireland and the Republic of Ireland. But is the technology really there for a widescale rollout yet? The UK doesn’t have enough battery storage for the wind it does produce.

The cost of wasted wind power this year has been £752m already. That’s money shelled out to wind farms to stop running because the grid can’t handle the surplus electricity. The introduction of more advanced batteries may put a stop to this problem. It may also make SSE look like a great buy years from now. But it’s not a stock I will buy at this moment.

The post Renewable energy: 1 analyst predicts a 51% rise for this FTSE 100 stock! appeared first on The Motley Fool UK.

Having said that, the FTSE’s rise must also be viewed against a backdrop of high economic and geopolitical uncertainty. Trade tariffs are impacting global growth, inflation is rising, and doubt persists over the scale of interest rate cuts. In this environment, some commentators believe the London stock market is now in danger of crashing.

I have enough experience not to try and predict the near-term direction of the FTSE 100. But I know that it may pay to be prepared for a potential correction. With this in mind, here are three blue-chip shares to consider that might fare better than the broader index in a downturn.

High energy

No matter the state of the economy, we all need electricity to do the daily essentials. This makes energy generators like SSE (LSE:SSE) more stable than most other UK shares during downturns.

There are other reasons why the company could benefit if economic conditions worsen. In such an event, the Bank of England could cut interest rates further to boost growth. This in turn would ease SSE’s large debt burden, and make it more cost effective for it to finance its green energy expansion programme.

That’s not to say SSE isn’t without risk, though. As a major wind farm operator, earnings can suffer when unfavourable weather changes hit energy production. That said, the company’s fleet of gas-fired power plants helps mitigate this threat.

On brand

Fast-moving consumer goods (FCMG) manufacturers can also be great defensive picks. Take Reckitt Benckiser (LSE:RKT), which has a number of weapons in its arsenal.

It sells a wide range of everyday products — homecare, medicines, and personal care goods — that stay in high demand even if consumers feel the pinch. Not only that, but Reckitt’s products, like Gaviscon indigestion reliever, Vanish stain remover, and Durex condoms, enjoy considerable brand power.

Due to their high desirability, the company can effectively raise prices on its so-called Powerbrands to grow earnings even when times are tough. I think it’s another top defensive share to consider, even though competition from smaller local brands poses a rising threat.

Case for the defence

Defence stocks like BAE Systems (LSE:BA.) can also be highly resistant to stock market shocks. Having robust military capabilities is non-negotiable for the company’s main customers, meaning its revenues have historically remained stable across the economic cycle.

In fact, the especially unstable geopolitical landscape today means revenues may hold up better than during previous downturns. Defence intelligence specialist Janes expects global arms spending to actually accelerate 3.6% in 2025 to new record peaks, even as weak economic growth lingers and national debts balloon.

It’s important to note supply chain disruptions threaten BAE’s ability to capitalise on this opportunity. But, on balance, I still believe it’s a top share to think about in today’s uncertain climate.

The post 3 FTSE 100 stocks that could survive a stock market crash! appeared first on The Motley Fool UK.