Every stock carries some amount of risk. Some companies, while seemingly successful today, may not even exist 10 years from now, destroyed by excessive risk-taking. Dramatic meltdowns happen, and investors left holding the bag can suffer greatly. Companies that are unlikely to suffer this kind of collapse in the long run are often the least risky, as long as valuations are reasonable. These companies generally enjoy durable competitive advantages that insulate them, at least partly, from competitive pressures.
A few of our Foolish contributors have come up with three low-risk stock ideas that fit the bill: Pipeline stocks have turned out to be riskier than investors initially thought. There are still some great investments in the sector, including Enterprise Products Partners (NYSE:EPD), which is low risk thanks to its strong balance sheet and cash flow metrics. Brick-and-mortar retailers may not seem like low-risk investments given the growing threat from e-commerce, but Wal-Mart (NYSE:WMT) is an exception. You might think the last place to look for a low-risk stock would be the biotech sector, but I can't help thinking that at today's prices, biotech giant Gilead Sciences (NASDAQ:GILD) qualifies.
Source: Motley Fool
Related Articles:
- 7 High-Yield Energy Stocks Growing Their Dividends
- 5 Dividend Stocks In Need Of A Market Correction
- 10 Dividend Stocks Building A Growing Cash Stream
- How To Build A Sustainable High Yield Portfolio
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Late last year, Wall Street had a bit of a panic attack when Fed chairman Jerome Powell suggested this tightening was on autopilot. While th...
-
If you’ve been following this column, you’d know that monthly dividend stocks tend to come from two main types of businesses: real estate an...
-
Are you sick and tired of low interest rates? Certificates of deposit pay next to nothing. Bonds yield only three or four percent a year. Su...
-
These three picks are all up more than 10% so far in 2019. The three themes are LNG, specialized healthcare, and small banks. The yields ran...
-
This company makes a compelling value proposition based on valuation, risk/reward, yield, and upside potential. I added this hotel REIT las...
-
This company makes a compelling value proposition on the dip for DGI investors. The REIT has strong portfolio stats and a conservative AFFO-...
-
Stocks with high dividend yields can be great, but if a stock has a high dividend yield and also has lots of long-term growth potential and ...
-
At its opening price of $101 per share on Jan. 7, MSFT stock had a market cap of $782 billion, which made it the most valuable company in th...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
Dividend growth or dividend yield. Which should investors prefer? I'm firmly in the "growth" camp since I'm still a few de...
0 comments
Post a Comment
Post a Comment