3 Defensive Stocks Investors Are Rechecking After The AI Sell Off

AI heavy stocks have been under pressure after a sharp sell off in semiconductor companies and growing questions around debt funded datacentre projects. At the same time, some investors are looking again at companies with stronger balance sheets and steadier dividends as a potential counterweight to this volatility. This article looks at 3 stocks from a Defensive Dividend Stocks screener that appear more exposed to the current AI driven news cycle. Each has different potential sensitivities to this story. Understanding those links can help you decide whether they deserve a closer look for your own watchlist.

High Liner Foods (TSX:HLF)

Overview: High Liner Foods is a long established Canadian company that processes and markets prepared and packaged frozen seafood across North America, supplying both grocery retailers and foodservice customers under brands like High Liner, Sea Cuisine, Mrs. Paul's and Van de Kamp's. Its products range from raw fillets and shellfish to ready to cook value added meals and seafood entrees.

Operations: High Liner Foods generates about $1.09b in annual revenue from manufacturing and marketing prepared and packaged frozen seafood, with around $252.9m from Canada and $840.4m from the United States.

Market Cap: CA$413.9m

High Liner Foods may appeal to investors seeking a defensive dividend stock with real scale in a basic consumer staple category and an emphasis on higher value seafood meals such as the new Sea Cuisine Skillet Meals in US grocery stores. The stock trades on a relatively low P/E multiple, analysts anticipate increases in revenue and earnings, and the balance sheet makes use of external borrowing while free cash flow coverage of the dividend has been tight. Recent results indicate pressure on margins even as sales increased. That mix of income potential, product momentum and funding risk makes this a seafood stock where the headline yield is only the starting point of the story.

High Liner Foods sits at an interesting crossroads. A low P/E, pressure on margins, and tight dividend cover suggest there is more beneath the headline yield story. Get the full picture with the 3 key rewards and 3 important warning signs (1 is major!)

Ridley (ASX:RIC)

Overview: Ridley Corporation is an Australian agribusiness that produces animal nutrition products, including stockfeed, aqua feed, animal proteins and oils, and specialty ingredients, for livestock, aquaculture and pets across several regions.

Operations: Ridley generates most of its revenue from A$914.7m in Bulk Stockfeeds and A$410.0m in Packaged Feeds and Ingredients, with smaller segment adjustments and inter segment sales included in reported figures.

Market Cap: A$1.1b

Ridley appears in the Defensive Dividend Stocks screener as a food and agriculture supplier with broad exposure to protein demand and a business mix that stretches from bulk feed to higher margin pet food and fertilizer. Earnings growth and a valuation that sits below some fair value estimates have drawn attention. However, investors also need to weigh higher debt, a patchy dividend record, one off gains that complicate profit quality and a relatively new management team ahead of FY2026 results on 20 August 2026. For investors looking at consumer staples with more moving parts than a simple feed mill, Ridley may warrant closer consideration.

Ridley’s mix of protein demand, higher margin pet food and fertilizer, plus a valuation below some fair value estimates, is only half the story. Get the full context from the 3 key rewards and 3 important warning signs

Inghams Group (ASX:ING)

Overview: Inghams Group is one of Australasia's largest poultry producers, supplying chicken and turkey products under the Ingham's brand to supermarkets, quick service restaurants and foodservice customers, and also providing stockfeed to the poultry and pig industries in Australia and New Zealand.

Operations: Inghams Group generates about A$3.2b in revenue from its Feed and Poultry Industry segment, with around A$2.7b from Australia and A$496.3m from New Zealand.

Market Cap: A$866.0m

Inghams Group gives you exposure to everyday poultry consumption with some potential upside if its plans play out as expected. The company is investing in automation and higher value branded products. Analysts expect stronger earnings growth than the wider Australian market. New senior hires, including a CFO joining in October 2026, may sharpen execution. At the same time, margins are under pressure, the dividend record is uneven and debt funding is doing a lot of work to support a high reported ROE, so interest costs and competition from big retail customers remain key watchpoints. That mix of growth potential and balance sheet risk is one reason this poultry stock appears in a defensive dividend screen.

Inghams Group’s push into automation and higher value products could be masking an even bigger earnings story. Get the analyst forecasts for Inghams Group before debt and margin pressure reshape how the upside really looks

The three dividend stocks here only scratch the surface, since the full Defensive Dividend Stocks screener on Simply Wall St flags 17 more companies with equally compelling stories inside the Defensive Dividend Stocks screener. Use the Simply Wall St filters to identify the exact balance of health scores, payout ratios and catalysts that match your own thesis so you can analyze and rank your highest conviction income ideas with more confidence.

Take Control of Your Investment Journey

If Ridley or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Alternatives Before The Crowd Moves

Fresh ideas move first. Some stocks are building quiet momentum while others risk being caught dropping once the crowd notices. Scan these curated lists while it matters and consider your options promptly.

• Spot early potential in smaller companies that pair agility with strong numbers by reviewing the 10 high quality undiscovered gems curated to stay under the radar for now.
• Track income-oriented opportunities that aim to keep paying even when conditions shift by scanning the 5 dividend fortresses built around consistency and resilience.
• Explore infrastructure themes supporting AI and data growth by checking the 34 power grid technology and infrastructure stocks focused on companies building and maintaining critical networks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com