3 Stocks For The Risk-Averse!

If you have been thinking about investing, but are a little gun shy given the past few months, I have put together a short list of three stocks you can invest in that will enable you to sleep at night.

These companies are all large in size, and able to withstand a big market decline.  You won’t get the same growth that you can realize from investing in a high-flying growth stock.  But you will get steady income in the form of a dividend.

So, here we go:

  1. Verizon (NYSE: VZ) – One of the largest telecommunications companies in the world with a market cap of $239 billion, Verizon is as steady as any business can be.  They have great customer loyalty, and their cash flow is on par with – if not stronger than – cable companies.  They boast the most reliable service, and their subscribers number 151.8 million – more than any other company.  Verizon is investing heavily in the rollout of 5G, which is expected to be the next big thing in telecommunications.  Verizon pays a dividend of 4.15%.
  2. Home Depot (NYSE: HD) – Home Depot is the largest home improvement company in the United States, with a market cap over $200 billion.  Over the past three decades, Home Depot has been one of the best investments in history.  Unlike Macys, Bed Bath & Beyond, and Sears, Home Depot has demonstrated itself to be “Amazon-proof”.  It is one of the best run retailers in the business.
  3. Alphabet (NASDAQ: GOOGL)– Alphabet is the parent company of Google, which is one of the top three most valuable companies on earth.  Google’s business is rock-solid; they generate an obscene amount of cash.  Google owns 44% of the global advertising market which is $88 billion.  They one of the leaders in autonomous driving.  Their life science research organization, Verily, cites a mission to “make the world’s health data useful so that people enjoy healthier lives.”

Over the next five to ten years, any one of these investments should outperform the market and would be great additions to a risk-averse investor’s.

Disclaimer/Disclosure Statement: Information in this article is not intended to be a recommendation to invest in any stock.  Rather, it is presented for readers’ education and consideration when making their own investment decisions.  The author has no position in any of the stocks mentioned in the article.

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

 

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Is Clorox A Buy?

buy clorox stock

I wrote this post for new investors that may be risk-averse.

If you’re like me, you have a high tolerance for risk.  You will have a portfolio that consists of companies on the cusp of innovative disruption.  These companies’ stock prices tends to be quite volatile.  You could be up 200%, and then give back more than half in weeks.

That kind of price movement may not sit well with some investors.  If you fall in this category that’s fine, because I have a suggestion for you: Clorox!

Now, I am a believer that many old-line companies are in big trouble.  They’re simply not moving fast enough to remain competitive.  However, Clorox (NYSE: CLX) is unique.  I believe they will continue to outperform the market for many years to come.

Clorox makes products that we must have on a daily or weekly basis, and that’s simply not going away.  Consider the brands they own:

1. Clorox Wipes

2. Clorox Bleach

3. Hidden Valley Salad Dressing

4. Pine-Sol

5. Burt’s Bees

6. Glad

7. Brita Water Filters

8. Kingsford Charcoal

9. Fresh Step Cat Litter

10. Liquid-Plumr

I think you could sleep at night if you owned these brand names.  You’re not going to set the world on fire in the way you would if you owned an Amazon or a Netflix, but that might not be your style.

That’s why I believe Clorox is a good choice for risk-averse investors.

Disclaimer/Disclosure Statement: Information in this article is not intended to be a recommendation to invest in any stock.  Rather, it is presented for readers’ education and consideration when making their own investment decisions.  The author has no position in any of the companies mentioned.

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)