Navigating the stock market can often feel like sailing through unpredictable waters, especially in times of economic uncertainty. This makes the case for the best safe stocks to buy in July.
There are a myriad of factors that can contribute to an increasingly uncertain market. This can include market volatility, geopolitical tensions and federal reserve policies. However, amidst all the market turbulence, there are reliable companies that investors can always count on.
These companies’ safety is characterized by their solid fundamentals, robust business models, substantial cash flows and a track record of weathering economic storms.
Additionally, they are typically large cap companies with a history of growing dividend payments. This predictability and reliability make them an essential component of a balanced investment portfolio.
Now, here are the top 3 safe stocks to buy to weather uncertain markets in July 2024.
Procter & Gamble (PG)
Procter & Gamble (NYSE:PG) is a quintessential safe stock, known for its vast portfolio of consumer goods and household products. The company operates in segments such as beauty, grooming, healthcare, fabric and home, as well as family care.
Procter & Gamble’s strong brand equity, coupled with its extensive distribution network, ensures consistent demand for its products. It has consistently weathered many economic storms, including the 2008 great recession and the 2020 Covid-19 Pandemic.
In fact, its revenue, earnings, and dividend per share have continued to grow, even despite these headwinds. The company constantly invests in research and development, launching, acquiring, and improving existing products to maintain its market leadership.
In Q3 FY24, net earnings increased 10% year-over-year to $3.8 billion, or $1.52 per share. Operating cash flow in the quarter was $4.1 billion, and the company returned $3.3 billion to shareholders on record.
PG’s moat allows the company to stay diversified and innovate its product category as consumer preferences evolve. Given its strong fundamentals and its 68 year track record of dividend increases, PG remains a top choice for investors seeking stability and growth.
Coca Cola (KO)
Coca Cola (NYSE:KO), the world’s largest beverage company, has a legacy of over a century operating in the beverage industry. The company’s global reach, with operations in over 200 countries, make it a resilient and reliable investment choice for July 2024.
Coca Cola’s ability to adapt to changing consumer preferences has been a pillar to its enduring success. By continually expanding its product portfolio, it has been at the forefront of emerging trends including sports drinks and healthier non-sugar beverage products.
This adaptability has contributed to its revenue growth and earnings growth over the last several years. Additionally, its strategic focus on cost management and operational efficiencies amid higher interest rates has further strengthened its financial position.
In FY23, revenue increased 6% year-over-year to $45.75 billion. Earnings per share rose 13% year over year to $2.47 per share, with cash flow from operations of $11.6 billion.
Furthermore, Coca Cola offers a dividend yield of approximately 3.11%, making it extremely attractive for income-oriented investors. With double-digit earnings per share forecasted for FY24, KO stock is among the top safe stocks to buy in July 2024.
Waste Management (WM)
Waste Management (NYSE:WM) represents a unique safe stock in the environmental services sector. The essential nature of waste management services provides investors with both growth and stability during uncertain economic times.
Waste Management’s integrated business model encompasses collection, transfer, recycling and disposal services. This comprehensive approach allows the company to capture value at every stage of the waste management process.
It also allows Waste Management to consistently grow its revenue, earnings and cash flow from operations. Moreover, its focus on sustainability and investments into renewable natural gas positions it well for long term growth.
In the first quarter of 2024, revenue increased 5% year-over-year to $5.16 billion. Net earnings swelled 33% year over year to $708 million, with adjusted EBITDA margin up 240 basis points.
Additionally, the company has a history of paying and increasing dividends, which is a testament to its financial strength and commitment to returning value to shareholders.
This makes WM stock one of the best safe stocks to buy for a reliable income stream amidst market uncertainties.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.