Top Safe Stocks: 6 Stocks to Buy Instead of Shiba Inu Coin
We’re barreling down into the end of the year, and many investors are distracted with the latest crypto to take off the Shiba Inu coin. But, several safe stocks are setting up nicely after another impressive earnings season. With this in mind, I will cover the top safe stocks to buy instead of chasing the latest meme stock.
This earnings season is revealing a clear trend, things are getting more expensive. Between higher labor costs and rising shipping rates, businesses are paying more for the same materials. As a result, rising prices are impacting everything from food to transportation.
Let’s see how these top safe stocks are preparing for what’s to come.
Top Safe Stocks List
Although any investment carries some risk, these top safe stocks are better equipped to overcome the hurdles. These companies are top-tier investments with solid cash flows, bulletproof balance sheets, and a proven history of rewarding shareholders.
Let’s take a closer look at the companies.
No. 6 Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B)
- Market Cap: 629B
- Beta: .91
- Dividend Yield: N/A
Despite not paying a dividend, Warren Buffett’s Berkshire still generated a 43% return for investors this past year. For someone that believes so much in the power of dividends, how come he doesn’t pay one himself?
While this may be true, Warren believes in his ability to better use the money to generate additional returns for investors. With this in mind, his current top holdings in terms of value include:
- Apple (Nasdaq: AAPL): $121 billion
- Bank of America (NYSE: BAC): $41 billion
- American Express (NYSE: AXP): $25 billion
- Coca-Cola (NYSE: KO): $21 billion
By investing in Berkshire, you gain exposure to some of the top companies, personally selected by Warren himself. Given the company’s impressive 15% CAGR growth over the past five years, Berkshire looks to be a top safe stock to buy for the next five.
No. 5 Verizon (NYSE: VZ)
- Market Cap: 212B
- Beta: .45
- Dividend Yield: 4.99%
As a member of the Dow Jones Industrial Average, Verizon has a reputation as a top safe stock to buy. Although the stock is down this year, the future is looking brighter for shareholders.
Verizon’s extensive investment into 5G is looking promising, with revenue growth in each of the last three quarters. Furthermore, the company expects growth to continue, raising expectations as consumers continue adopting the new technology.
On top of this, Verizon offers an attractive dividend yield at 4.85% after raising it for the 15th consecutive year.
As we advance through the end of the year, look for Verizon to continue its expansion into 5G. As a result, Verizon is going to be a top safe stock on continued momentum.
No. 4 Walmart (NYSE: WMT)
- Market Cap: 395B
- Beta: .50
- Dividend Yield: 1.55%
Walmart finds itself in a superior position as the low-cost retailer is growing its e-commerce and ad revenue. The digital transformation benefits the company’s bottom line with an over 100% increase in the past two years.
What’s more, Walmart is gaining market share in key areas such as meat, produce, and bakery items, per Nielson’s research.
The growth comes at a crucial time as food inflation is hitting shelves everywhere, driving prices higher as a result. Walmart’s low-cost price model is helping attract shoppers not only in the store but online as well.
Additionally, Sam’s Club saw higher traffic, with membership income advancing 12.2% in the latest quarter and a record membership total. Looking ahead, Walmart will be a top safe stock to buy to help protect your portfolio from rising inflation.
No. 3 Home Depot (NYSE: HD)
- Market Cap: 427.29B
- Beta: .99
- Dividend Yield: 1.63%
One of the strongest performers of the year, Home Depot, is also a top safe stock to buy based on its market position and fundamentals.
The world’s leading retailer got much bigger this past year as home improvement projects became a major focus for homeowners during the pandemic. In fact, homeowners spent more on DIY projects in the last two years than ever before, reaching $457 billion in the U.S. market.
To put things in context, it took Home Depot nearly 20 years to break $20 billion in sales, and they grew sales by +$22 billion in 2020.
With that in mind, Home Depot has invested heavily over the years to put the company in today’s position. And because of this, revenue has grown for the past six quarters, with four experiencing double-digit growth.
Home Depot’s superior profit margins, market position, and investments in digital efforts are lifting the stock to all-time highs.
Keep reading to learn the top safe stocks to buy right now.
No. 2 Costco (NYSE: COST)
- Market Cap: 2348B
- Beta: .64
- Dividend Yield: 0.60%
Similarly, Costco’s revenue has increased by double digits in each of the last five quarters. Like Walmart, Costco’s low-cost proposition is helping retain existing customers while attracting new shoppers.
Despite being higher valued (44 PE vs. 23), Costco is also growing at a faster rate. As a result, Costco’s stock price has gained quicker.
But, we are talking about the top safe stocks, and Costco’s better debt position & faster growth is helping edge out Walmart on this list.
As we advance, look for Costco to continue expanding its memberships. Additionally, rumors are swirling that the retailer could raise its membership price, a move that could drive profits even higher.
No. 1 Microsoft (Nasdaq: MSFT)
- Market Cap: 2.56T
- Beta: .80
- Dividend Yield: 0.73%
After another impressive earning beat, Microsoft is now the world’s most valuable company, surpassing old rival Apple.
Microsoft earns its spot on the top safe stocks through relentless growth, product innovation, and industry potential. The tech company is generating unrivaled year-over-year (YOY) growth in essentially all business segments, including…
- Microsoft Cloud up 36%
- LinkedIn revenue up 42%
- Dynamic Products up 31%
- Azure & other cloud services up 50%
- Search and Ad revenue up 40%
And that’s not even including one of Microsoft’s primary segments in personal computing, which also saw 12% growth.
All in all, Microsoft is in a great position to continue expanding into high growth opportunities and growing its core business. With that in mind, Microsoft gets the number one position for the top safe stocks to buy going forward.
Grow Your Portfolio with These Top Safe Stocks
If you’re sick of chasing the latest meme stocks, these top safe stocks offer a chance for steady gains in 2022. These companies are well-positioned in their industries with strong cash positions and low debt.
Each of these businesses has a specific advantage that’s led them to the top of their market. Above all, they’ve proven they’re able to overcome adversity and still generate returns.
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Going into next year and 2023, the fed will be slowing the support provided through the pandemic. When this happens, higher-risk companies such as growth stocks are more prone to declines.
About Pete Johnson
Pete Johnson is an experienced financial writer and content creator who specializes in equity research and derivatives. He has over ten years of personal investing experience. Digging through 10-K forms and finding hidden gems is his favorite pastime. When Pete isn’t researching stocks or writing, you can find him enjoying the outdoors or working up a sweat exercising.