As investors, the goal is to find and invest in safe stocks that won’t lose value but can still generate a return and help you build wealth. It would be great if every asset we invested in were considered safe and still profitable, but that’s just not the case.

Some assets are naturally more risky than others. In many instances, the assets considered the most “at-risk” can have the highest potential to generate significant returns. But, you can also lose a good portion of your investment with risky assets. Our job as investors is to decide the line between risk and reward and how much we are willing to risk to generate the highest probability of a reward.

For example, look at what happened to ContextLogic (NASDAQ: WISH) investors recently. After a big miss on the company’s Q2 earnings, the eCommerce stock took a significant hit. WISH stock is now down over 60% on the year.

To avoid losing money in an investment such as ContextLogic, let’s take a look at a few safe dividend stocks that can keep your portfolio positive, even when the market is in turmoil.

safe stocks

The Best Safe Stocks to Buy Right Now

Luckily, we have several tools and resources available to us to find safe stocks to invest in and still earn a positive return. A few properties to look for in safe stocks can include:

  • Dividend history
  • Low volatility (Beta)
  • Brand loyalty
  • High profitability
  • High institutional investment

Using these factors, we can discover established companies that are well-positioned in their respective markets. The following companies are considered safe stocks to invest in based on the above criteria.

Disney (NYSE: DIS)

  • Revenue (2020) 65B
  • Annual Dividend (Currently suspended)
  • Beta 1.2

Disney investors got to see firsthand just how bulletproof the company is when Covid-19 raced across the globe and forced the company to close one of its most significant revenues sources – the Disney theme parks.

The closed theme parks cost Disney over $3 billion in revenue, and the company still managed to realign the business and focus on long-term growth.

One of the biggest reasons Disney was able to remain competitive was through its new direct-to-consumer platform Disney +. Disney’s streaming app recently crossed over the 100 million subscriber threshold, with new marvel content being added, such as The Black Widow and The Falcon and the Winter Soldier keeping users entertained. For comparison, Netflix (NASDAQ: NFLX) currently has 209 million since it started its streaming service.

Disney has a lot more to offer in terms of media than just the Disney+ app. They also have the ESPN+ and Hulu apps to capture a different audience of consumers. Then, they also have ABC and the ESPN Networks on cable.

On top of that, Disney owns some of the biggest names in film with Pixar, Marvel, and legendary Star Wars maker Lucasfilms. Disney is considered a safe stock to buy partly because of the brand it has built over the years. This helps give the company control over pricing, which has been a significant competitive advantage for Disney.

Apple (NASDAQ: AAPL)

  • Revenue (2020) 274.5B
  • Annual Dividend .88
  • Beta 1.2

Another safe stock to take a look at is Apple. Apple’s reign as “king of Wall St” has been going on for some time now as AAPL stock has returned well over 900% for investors over the last ten years and doesn’t look to be slowing down anytime soon.

The technology giant is also a favorite of legendary investor Warren Buffet. Information from Warren’s company Berkshire Hathaway’s (NYSE: BRK.A) latest 13F filing shows that Apple currently constructs over 40% of the Berkshire portfolio.

In Apple’s third-quarter financial results, the company mentioned they smashed another revenue record for the quarter, generating 81.4 billion, a 36% increase from the previous year.

Apple has one of the biggest competitive advantages with the brand loyalty displayed by Apple’s customers. And with the company constantly developing new, innovative products (ex. Airpods, new iPhone, advanced watches), Apple knows they have a loyal consumer base to sell to.

Starbucks (NASDAQ: SBUX)

  • Revenue (2020) 23.5B
  • Annual Dividend 1.80
  • Beta .88

Starbucks has earned its title of safe stock through (once again) superior brand loyalty and consistent demand for coffee. In fact, according to new information released from the U.S Department of Agriculture, coffee consumption this year could outpace its production.

Sure, you can get coffee just about anywhere – the gas station, in the office, or even at home. But it’s not Starbucks coffee. That’s where the company’s competitive advantage lies. They know you will go out of your way to buy their coffee.

That’s precisely why the company has improved customer experience by enhancing the Starbucks app and introducing a rewards program. The programs make it easier for users to checkout, earn free rewards, and customize their orders.

Although coffee bean prices are on the rise, Starbuck’s brand loyalty and customer experience should allow them to sustain their growth and continue expanding their market share.

Public Storage (NYSE PSA)

  • Revenue (2020) 2.91B
  • Annual Dividend 2.00
  • Beta .12

Public Storage may not be as big as some companies on this list, but as far as safe stocks go, Public Storage is an excellent asset to hold down your portfolio.

Public Storage is a real estate investment trust (REIT) that’s primarily in the business of self-storage facilities. The company is currently the largest self-storage facility operator globally, with over 2,600 buildings and 1.6 million customers.

By focusing on tactics such as search engine optimization and paid search, the storage company has increased its market share and is now the most recognized brand in self-storage. This has given PSA stock a significant advantage over the competition.

When individuals store their personal belongings, they will want to do it with a brand they recognize and trust. Public Storage can be a good investment due to its versatility. No matter what happens with the financial markets, individuals will still need a safe place to store their personal belongings.

Diversifying Your Portfolio: Going Beyond Safe Stocks

Investing in safe stocks like the companies listed above can be a great way to grow your wealth. Depending on your investment strategy, you can diversify your portfolio by investing in alternative types of assets such as growth stocks or cryptocurrencies that are at higher risk but may also present opportunities for more significant rewards.

No matter your investment strategy, these safe stocks will provide your portfolio with the cushion it needs. To discover more investment opportunities, check out the best stocks to buy in 2021 and give your portfolio an instant upgrade.

Also, don’t forget to join our free Wealthy Retirement newsletter. A master of the steady, reliable science of income investing, Marc Lichtenfeld has appeared in The Wall Street Journal, Barron’s and U.S. News & World Report. His dividend investing strategies will help you get on the right track to building wealth. Sign up today!