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
-
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 ...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
Whether you are looking to supplement your income or looking to build wealth over very long periods of time, dividend stocks that can reliab...
-
There have been a lot of business cycles over the past five decades, ups and downs through which it takes astute leadership to survive and t...
-
This BDC remains a "Strong Buy". It has a diversified investment portfolio with considerable NII-upside. Shares sell for a premium...
-
A safe yield and solid growth prospects are a must for any investor in real estate investment trusts -- and this company not only has these ...
-
The S&P 500 might be on one of its strongest bull runs ever, but there are several solid dividend stocks out there that haven't quit...
-
Dividend payers have long had a reputation as stodgy companies that can pay a reliable income but whose stocks don't move too fast. Here...
-
These stocks need to achieve the right balance between dividend payment and the re-investment of profits. This ensures that the dividend is ...
0 comments
Post a Comment
Post a Comment