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7 Best Safe Stocks to Buy Now - WTOP News

7 Best Safe Stocks to Buy Now

In an era of economic uncertainty marked by fluctuating interest rates, geopolitical tensions, and market volatility, investors are increasingly turning to "safe" stocks—those reliable, blue-chip companies that offer stability, consistent dividends, and resilience against downturns. These stocks typically belong to defensive sectors like consumer staples, utilities, healthcare, and telecommunications, where demand remains steady regardless of broader economic conditions. While no investment is entirely risk-free, safe stocks are characterized by strong balance sheets, long histories of profitability, and the ability to weather recessions. As we head into the latter half of 2025, with inflation cooling but recession fears lingering, now is an opportune time to consider bolstering your portfolio with these dependable picks.

This article highlights seven of the best safe stocks to buy now, selected based on their track records, dividend yields, and potential for modest growth. These recommendations draw from recent market analyses, emphasizing companies with low beta values (indicating less volatility than the market), robust cash flows, and histories of dividend increases. Whether you're a conservative investor seeking capital preservation or someone looking to balance a growth-oriented portfolio, these stocks provide a solid foundation. Let's dive into the details.

1. Johnson & Johnson (JNJ)

Johnson & Johnson stands as a cornerstone of safe investing, a healthcare giant with a diversified portfolio spanning pharmaceuticals, medical devices, and consumer health products. Founded in 1886, JNJ has weathered countless economic storms, from the Great Depression to the COVID-19 pandemic, emerging stronger each time. Its safety stems from the inelastic demand for healthcare—people need medicines and medical supplies regardless of economic conditions. In recent quarters, JNJ reported steady revenue growth, driven by blockbuster drugs like Stelara and Darzalex, with sales topping $85 billion in the last fiscal year.

What makes JNJ particularly appealing is its status as a Dividend King, having increased dividends for over 60 consecutive years. The current yield hovers around 3%, providing a reliable income stream. The company's balance sheet is rock-solid, with low debt levels and ample cash reserves exceeding $20 billion, allowing it to invest in R&D and acquisitions without strain. Analysts project modest earnings growth of 5-7% annually, supported by an aging global population and expanding emerging markets. Despite occasional legal challenges related to product liabilities, JNJ's diversified operations mitigate risks. Trading at a forward P/E ratio of about 15, it's reasonably valued for long-term holders seeking stability.

2. Procter & Gamble (PG)

Procter & Gamble, the consumer goods behemoth behind brands like Tide, Pampers, and Gillette, exemplifies defensive investing. Operating in the consumer staples sector, PG benefits from everyday essentials that consumers purchase consistently, even during recessions. This resilience was evident during the 2008 financial crisis and the 2020 pandemic, where PG's sales remained robust while many sectors faltered.

PG's safety is underscored by its impressive dividend history—it's a Dividend Aristocrat with over 65 years of consecutive increases, offering a yield of approximately 2.5%. The company's global reach, with products in over 180 countries, provides geographic diversification, reducing exposure to any single market's downturns. Recent financials show revenue growth of 4-5% annually, fueled by pricing power and innovation in premium products. PG's strong free cash flow, often exceeding $15 billion yearly, supports share buybacks and R&D investments. With a beta below 0.5, PG experiences less volatility than the S&P 500, making it ideal for risk-averse investors. At a current valuation of around 24 times forward earnings, it's a premium pick, but its predictability justifies the price.

3. Coca-Cola (KO)

Few companies embody timeless appeal like Coca-Cola, the iconic beverage maker with a market presence in virtually every corner of the globe. As a consumer staple, KO thrives on habitual consumption—sodas, juices, and bottled water are recession-resistant purchases. The company's vast distribution network and brand loyalty create a wide economic moat, protecting it from competitors.

KO's safety profile is enhanced by its dividend prowess: it's another Dividend King with 60+ years of increases, yielding about 3%. In 2024, KO reported record revenues of over $45 billion, driven by volume growth in emerging markets and successful ventures into non-carbonated drinks like energy beverages and plant-based options. The firm's ability to pass on cost increases through pricing has maintained healthy margins, even amid inflationary pressures. With a debt-to-equity ratio under 1.5 and strong cash generation, KO can fund expansions and weather supply chain disruptions. Analysts forecast steady 4-6% annual growth, supported by digital marketing and sustainability initiatives. Trading at a forward P/E of 22, KO offers a blend of safety and moderate upside.

4. Walmart (WMT)

Walmart, the world's largest retailer, is a safe haven in the consumer defensive space, capitalizing on its low-cost model that attracts budget-conscious shoppers during tough times. As economic pressures mount, consumers flock to Walmart for affordable groceries, household items, and essentials, boosting its counter-cyclical nature.

The company's safety is evident in its consistent performance: during the 2008 recession, Walmart's same-store sales rose while peers struggled. It's also a reliable dividend payer, with over 50 years of increases and a yield of about 1.2%. Recent quarters have seen explosive e-commerce growth, with online sales surging 20% year-over-year, complementing its 4,700+ U.S. stores. Walmart's supply chain efficiency and scale allow it to maintain low prices and high margins, generating over $600 billion in annual revenue. With a beta around 0.5 and substantial cash reserves, it's well-positioned against inflation or slowdowns. Valued at 25 times forward earnings, Walmart provides stability with growth potential from international expansion and tech integrations like Walmart+.

5. Verizon Communications (VZ)

In the telecommunications sector, Verizon stands out as a safe stock due to the essential nature of connectivity—internet, mobile, and broadband services are non-negotiable in modern life. As a regulated utility-like entity, VZ enjoys stable demand and predictable revenues from long-term contracts.

VZ's appeal lies in its high dividend yield of around 6.5%, backed by 18 years of consecutive increases, making it a favorite for income investors. The company has invested heavily in 5G infrastructure, positioning it for future growth, with 2024 revenues exceeding $135 billion. Despite competition, Verizon's vast network coverage and customer base of over 140 million provide a defensive edge. Low churn rates and recurring subscription models ensure steady cash flow, supporting debt management and capital expenditures. With a beta under 0.4, it's less sensitive to market swings. Analysts predict 2-4% annual growth, driven by enterprise services and fiber optics. At a forward P/E of 9, it's undervalued for its safety.

6. Duke Energy (DUK)

Utilities like Duke Energy offer quintessential safety, providing electricity and natural gas to millions in stable, regulated markets. Demand for power is constant, shielding DUK from economic cycles, and regulatory protections ensure consistent returns.

As a Dividend Aristocrat with 20+ years of increases, DUK yields about 4.2%. Recent transitions to renewable energy, including solar and wind projects, align with sustainability trends, boosting long-term prospects. In 2024, DUK reported $29 billion in revenue, with investments in grid modernization enhancing reliability. Its service territory in growing regions like the Southeast U.S. supports organic growth. With a strong balance sheet and investment-grade credit rating, DUK can handle interest rate fluctuations. Beta around 0.6 indicates low volatility. Forward P/E of 18 suggests fair value for steady, income-focused returns.

7. Berkshire Hathaway (BRK.B)

Warren Buffett's Berkshire Hathaway is the ultimate safe conglomerate, with diversified holdings in insurance, railroads, energy, and consumer goods. Its non-dividend policy is offset by Buffett's value investing approach, focusing on capital appreciation and buybacks.

Berkshire's safety comes from its massive cash hoard—over $100 billion—and low-risk insurance float. In recent years, it has delivered compound annual growth of 10%+, outperforming in downturns. Subsidiaries like Geico and BNSF provide recession-resistant revenues. With no debt at the parent level and a beta near 0.8, it's a fortress. Valued at 1.5 times book value, it's a buy for long-term stability.

In conclusion, these seven stocks—JNJ, PG, KO, WMT, VZ, DUK, and BRK.B—represent a prudent way to navigate uncertain markets. They prioritize preservation over speculation, offering dividends, low volatility, and enduring business models. While past performance isn't indicative of future results, their histories suggest reliability. Investors should conduct due diligence and consider diversification. As always, consult a financial advisor to align these picks with your goals. In a world of rapid change, these safe stocks provide a comforting anchor. (Word count: 1,248)

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