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
-
REITs don’t just pay out attractive yields; many of these companies are terrific operators too. So not only do investors get to collect a so...
-
The company reported solid results for its fourth fiscal quarter. The business development company once again covered its dividend payout wi...
-
It’s in volatility like this that the value of dividends truly shines through. The market could be having a massive sell-off, but when a com...
-
If you are interested in high-yield dividend stocks, it’s better to focus on a company’s history of growing its dividend rather than just lo...
-
When the average S&P 500 company pays less than two percent, a 6.5%-yielding stock certainly deserves income investors’ attention. A Top...
-
When it comes to stock investing while in retirement, dividend stocks tend to be some of best investments you can make. Not only do they ten...
-
While conventional wisdom holds that you reach for yield, my strategy has been to look first for capital gains, then to management teams tha...
-
I screened for cheap dividend stocks that are showing some upward movement, trading above their 50-day moving average, with a 3% or higher d...
-
There are hundreds of high-yield dividend stocks on the market. At least, that's the case if your definition of high dividend yield isn&...
-
Buying and holding high-quality dividend stocks is arguably the best way for investors to predictably achieve outsized returns over the long...
0 comments
Post a Comment
Post a Comment