Global tariffs will continue to loom over the local bourse in the coming semester, with negotiations still likely to happen and steer the overall direction of capital markets.

Whichever way the tariffs go, global economies will be impacted.

Analysts surveyed by the Inquirer are encouraging traders to make their bets on defensive industries unaffected by the economic climate, including companies that offer high dividends.

Others also prefer consumer stocks that have stood the test of time and will continue to do so, especially if interest rates and inflation ease. For some, the property sector appears to finally be recovering after suffering from high inventory and low demand.

Here are their top stock picks:

Japhet Tantiangco

Philstocks Financial Inc.
Analyst

1. LT Group Inc. (LTG)

For those into dividend plays with the possibility of capital gains, we recommend LTG Inc.. At its closing price last Friday of P13.00, LTG’s trailing 12 months dividend yield stands at 9.62 percent. The share is currently exhibiting an uptrend. Finally, the company has shown a healthy financial performance in the first quarter.

2. Robinsons Land Corp. (RLC)

For those looking for trading opportunities, we may look into RLC. The share has been forming an uptrend after bottoming at P11.04 per share last April 8, 2025. A golden cross has already appeared in its chart last July 15, 2025, indicating that the uptrend may continue in the medium to long run.

3. Converge Information and Communications Technology Solutions, Inc. (CNVRG)

Finally, we recommend CNVRG. The company remains undervalued while its growth story remains intact as it continues to improve its services and expand its customer base. Its business nature also makes it defensive which is preferable during times of uncertainties.

Kervin Sisayan

Maybank Securities Inc.
Head of research

1. Ayala Land Inc.

2. SM Prime Holdings

We are starting to like property given attractive valuations while it appears that it is also turning around. Our top picks here are ALI and SMPH.

3. Jollibee Foods Corp. (JFC)

“We continue to like JFC as this low inflation environment should be positive to the consumer sector.”

April Lee-Tan

COL Financial Group
chief strategist

1. RL Commercial REIT Inc. (RCR)

It’s a beneficiary of lower interest rates.

RCR is planning to aggressively grow its asset base through acquisitions. The REIT (real estate investment trust) has a three-year target to be as big as possible. Based on the rental assets that its principal Robinsons Land Corp. (RLC) owns, this means that RCR has the potential to triple its asset base.

Growth through acquisitions means higher dividend per share since all acquisitions are required to be dividend accretive. Moreover, as it becomes bigger, RCR has the potential to be added to the PSEi index. This in turn will push up RCR’s share price as fund managers who track the index buy shares of the company.

Given RLC’s existing rental portfolio, which is heavily exposed to malls, RCR will benefit from asset injections as it would also increase its exposure to malls. Having larger exposure to malls—where lease rates are buoyed by resilient consumer spending—would enhance the stability and upside potential of dividend payments.

2. SM Investments Corp. (SMIC)

It’s a beneficiary of improving consumer spending growth.

This is evidenced by the strong performance of SM Retail, which saw first quarter revenue growth of 7 percent and profit growth of 16 percent, and first half revenue growth of 8 percent and profits growth of 9 percent.

Despite the rebound of SM Retail, an undisclosed institutional investor sold 9.6 million shares of SM in a block trade last July, priced at a 3.9 to 5 percent discount to its previous close. This sent share prices down as block sales are usually viewed as a signal that the stock is already expensive.

However, we don’t think this is the case. SM is trading at only 10.3X P/E, below its 10-year historical average of 22X. In fact, because of cheap valuations, the company in February launched a P60-billion share buyback program, which is equivalent to around 6 percent of its market capitalization. This is also the first time the company launched a share buyback program since its listing.

3. Puregold Price Club Inc. (PGOLD)

It’s a beneficiary of improving consumer spending growth.

First quarter sales growth reached 10.8 percent, accelerating further to 12.3 percent in second quarter due to strong same-store sales growth.

It has attractive valuation, with the stock trading at only 10.2X P/E versus its historical average of 14X. The company also more than doubled its cash dividends recently to P1.81 per share from P0.90 per share, pushing up the stock’s dividend yield to 4.3 percent.

Joey Roxas

Eagle Equities Inc.
president

1. Synergy Grid and Development Philippines Inc. (SGP)

Synergy Grid owns 40 percent of National Grid Corp. of the Philippines (NGCP). I like it because it just got the [transmission fee] increase that they have been asking for from ERC (Energy Regulatory Commission). That will start this August and that’s about P0.10 per kilowatt-hour. For NGCP, that’s equivalent to around P10 billion a year. For SGP, which owns 40 percent, that’s around P4 billion a year.

That should allow them to continue previous dividends, which they stopped for a while when they were waiting for their increase. They should resume maybe as early as next year.

2. Century Properties Group Inc. (CPG)

Year-on-year, they’re up about 20 percent in net income. The P/E (price to earnings ratio) is so low at around 3x, and that’s too low for that level of growth. What people probably don’t like about it is that it’s in the real estate sector, which has been battered recently.

But what I like about them is they got out of the vertical construction and got into the horizontal segment at the right time. Before the pandemic, they moved from condo development. Then they went into horizontal: lower middle-cost housing in the provinces, in which there is always demand because there’s a really big backlog in that segment.

3. Philippine National Bank (PNB)

PNB’s second quarter versus [2024] second quarter net income is up 28 percent. For the first half, they’re up 20 percent. The P/E is around 3.5x. The book value is around P120, so I think this is one of those undervalued banks, which has started to give dividends again after a long time.

Recently, it has been getting some attention. Its trading volume has been getting bigger, and bigger volume attracts even more volume. I think people are starting to take notice already.

Luis Limlingan,

Regina Capital Development Corp.
Head of sales

1. International Container Terminal Services Inc. (ICTSI)

ICTSI’s expanding global port network and strategic capacity investments position it to capture rising trade volumes and new market opportunities. Sustained strong double-digit growth in first half of 2025 and a 26.94 percent year-to-date gain underscore its solid momentum heading into the second half of the year.

2. Manila Water Co. (MWC)

MWC’s growth strategy is anchored by key projects like the WawaJVCo Bulk Water Supply, ensuring secure and scalable water resources for Metro Manila. Strong first half 2025 results and a 53.7-percent year-to-date gain highlight its positive trajectory, complemented by a solid record of dividend payouts.

3. Puregold Price Club

Gaining 36.14 percent year-to-date, Puregold maintains strong growth momentum, driven by sustained double-digit top-line expansion and steady same-store sales gains across both Puregold and S&R formats.

Ongoing nationwide store network expansion supports long-term market share gains, while its recent inclusion in the PSE Dividend Yield Index underscores its commitment to enhancing shareholder value through increasing dividends.