Defensive Dividend Stocks For Investors Seeking Steady Cash Flow Beyond Big Tech

Big Tech is pouring cash into artificial intelligence, and Alphabet’s new US$5.9b negative free cash flow has reminded investors that heavy investment can pressure profits and sentiment, as seen in the 4% after hours share price move. Alongside Tesla’s own free cash flow hit, this AI investment spree is prompting some investors to look again at companies with steadier cash generation and dependable dividends. This article looks at three stocks from a Defensive Dividend Stocks screener that appear positively exposed to the current focus on cash flow resilience and may help you think about how to position around Alphabet and broader AI spending trends.

Overview: A.G. BARR is a UK based drinks group that manufactures and distributes soft drinks and cocktail solutions, including brands such as IRN-BRU, Rubicon and MOMA, selling a wide range of non alcoholic beverages in the UK and internationally.

Operations: A.G. BARR generates most of its revenue from Soft Drinks at £382m, with Cocktail Solutions contributing £35.8m and Other activities £19.5m, largely driven by the UK market at £418.8m versus £18.5m from the rest of the world.

Market Cap: £726.9m

For investors watching Alphabet and Tesla ramp up AI spending, A.G. BARR offers a very different story: a UK beverage company with earnings growth of 17.8% over the past year, revenue forecast growth of 6.1% per year and a history of regular dividends, including a recently approved 15.27 pence final payout. The stock trades on a P/E below the broader European Beverage peer average and is assessed as cheaper than fair value on a discounted basis. However, its dividend is not fully covered by free cash flow and the balance sheet leans on external borrowing, which lifts funding risk. Those trade offs between resilient earnings, income potential and balance sheet pressure are what make A.G. BARR worth a closer look for defensive dividend investors.

Growing earnings and a P/E below peers suggest A.G. BARR’s story is not fully reflected in the price, but the real tension sits between its income appeal and funding risk, which is unpacked in the 3 key rewards and 1 important warning sign

Overview: Power Corporation of Canada is a Montreal based holding company that owns a collection of large financial businesses, offering insurance, retirement, wealth management and investment services to individuals, businesses and institutions across North America, Europe and Asia.

Operations: Power Corporation of Canada generates most of its revenue through Great West at CA$32.8b, with IGM contributing CA$3.9b, Alternative Asset Investment Platforms and Other CA$3.0b, and smaller contributions from the Holding Company at CA$35m and an Effect of Consolidation of CA$326m.

Market Cap: CA$57.7b

Power Corporation of Canada is built around recurring fee income, a long history of stable dividends and active capital returns through sizeable buybacks. The company reported Q1 2026 net income of CA$840m and paid a CA$0.6675 quarterly dividend. The trade off for this model is exposure to regulation and disruption in core insurance and wealth platforms, along with alternative asset strategies that are still proving their consistency.

Power Corporation of Canada’s mix of recurring fees, buybacks and dividends can look comfortably predictable. Yet the real story sits in how those pieces work together. Get the full picture in the analysis report for Power Corporation of Canada

Overview: iA Financial is a Canada based insurer and wealth manager that offers a wide range of life, health, auto, home and creditor insurance alongside savings, retirement and investment products for individuals and groups in Canada and the United States.

Operations: iA Financial generates most of its revenue from Insurance, Canada at CA$4.6b and Wealth Management at CA$3.4b, with additional contributions from US Operations at CA$2.4b, Investment at CA$720m and Corporate activities at CA$8m.

Market Cap: CA$18.2b

iA Financial stands out in the current AI spending cycle because it offers what many investors are seeking right now: a combination of established insurance cash flows, a 2.14% dividend yield and an earnings profile that has grown around 11% per year over five years, with forecasts that are broadly in line with that history. The stock also trades at a substantial discount to some fair value estimates, even though its P/E of 18.1x is higher than the broader insurance industry. This may reflect confidence in its earnings quality and governance. The catch is that iA Financial relies on external borrowing rather than customer deposits, adding funding risk that deserves closer attention when set against its buyback plans and new CA$500m subordinated debt issue.

iA Financial’s rising earnings profile and 2.14% yield look appealing, but the real story is how its external borrowing and new CA$500m debt fit into future capital returns, which the analysis report for iA Financial starts to reveal.

The three stocks in this article are just a starting point, and the full Defensive Dividend Stocks screener has surfaced 7 more companies with equally compelling income and resilience stories that you have not seen yet in the Defensive Dividend Stocks screener. With Simply Wall St, you can quickly identify and analyze the specific catalysts, dividend histories and financial health narratives that matter to you, so you can focus on the highest conviction defensive dividend ideas.

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Seeking Fresh Alternatives Beyond Big Tech?

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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
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Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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