In this article, we will take a look at the 10 Safe Stocks to Buy for the Long Term in 2026.
According to a CNBC report published on May 26, JPMorgan believes there may be a buying opportunity developing in one overlooked part of the stock market, with investors also getting paid to wait through dividend income. Mislav Matejka, the bank’s head of global and European equity strategy, said low-volatility stocks in the US and Europe have struggled over the past few months as bond yields moved higher. These stocks typically come from sectors such as consumer staples, healthcare, utilities, insurance, and industrials. They are generally known for more stable price movements and consistent dividend payouts.
Matejka noted that so-called “low vol” stocks have shown an inverse correlation with bond yields this year. Since the start of the Middle East conflict, the group of US low-volatility stocks has fallen about 6%, while bond yields have climbed by 55 basis points. One basis point equals 0.01%, and bond yields usually move in the opposite direction of prices.
He also noted that if bond yields rise sharply again, with the 10-year Treasury yield moving closer to 5%, low-volatility stocks could still begin outperforming on a relative basis despite the usual inverse relationship. Matejka expects yields to move lower over the medium term. He made the following comment:
“The low Vol trade is worth considering now given the attractive entry point on the back of past weakness, and given that it is likely to work in a range of macro scenarios from here. Put another way, the trade is not conditional on the overall market moving lower. Ahead of the Iran conflict, low Vol outperformed during a strongly rising broader equity market.”
Given this, we will take a look at some of the safe stocks to invest in.
Our Methodology:
For this list, we screened for companies with solid financials, strong balance sheets, and consistent dividend histories. From that list, we picked the top companies that were most popular among hedge funds, as per Insider Monkey’s database of Q1 2026.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Cincinnati Financial Corporation (NASDAQ:CINF)
Number of Hedge Fund Holders: 32
On May 26, Piper Sandler analyst Paul Newsome raised the firm’s price target on Cincinnati Financial Corporation (NASDAQ:CINF) to $175 from $161 and maintained a Neutral rating on the shares. The firm pointed to the stock’s recent performance and the passage of time as key reasons behind the move. Piper said it has slightly increased price targets for most insurance carriers while lowering targets for some insurance brokers. The firm’s analysis takes a bottom-up approach. After reviewing first-quarter results, Piper believes carriers may be in a stronger position than brokers right now. Underwriting performance came in better than expected for carriers, while brokers saw softer organic growth trends.
On April 28, BofA raised its price target on Cincinnati Financial (CINF) to $183 from $177 and kept a Buy rating on the stock. Following what the firm described as “a marginal miss” in Q1, analysts modestly increased their EPS forecasts. The update was supported by steady premium growth, even as some business lines continued to face short-term margin pressure.
Cincinnati Financial Corporation (NASDAQ:CINF) mainly provides business, home, and auto insurance through The Cincinnati Insurance Company and its two standard-market property casualty insurance companies.
9. FactSet Research Systems Inc. (NYSE:FDS)
Number of Hedge Fund Holders: 39
On May 27, RBC Capital analyst Ashish Sabadra lowered the firm’s price target on FactSet Research Systems Inc. (NYSE:FDS) to $240 from $243 and maintained a Sector Perform rating on the shares ahead of the company’s Q3 results. The firm expects an ASV, or Annual Subscription Value, to beat, supported by international pricing increases, solid demand, and a strong pipeline across different regions and client types, the analyst said in a research note.
RBC also noted that FactSet’s expanded managed services offerings, competitive product positioning, and structural changes to its sales compensation model continue to support the company’s growth outlook.
FactSet Research Systems Inc. (NYSE:FDS) is a global financial digital platform and enterprise solutions provider. The company offers financial data, analytics, and open technology solutions to clients around the world, including individual users.
8. Essex Property Trust, Inc. (NYSE:ESS)
Number of Hedge Fund Holders: 40
On May 27, Truist raised the firm’s price recommendation on Essex Property Trust, Inc. (NYSE:ESS) to $286 from $273. It reiterated a Hold rating on the shares. The firm said it adjusted its model to reflect assumptions of $300M in acquisitions for 2026 and $75M in dispositions, the analyst said in a research note.
On May 15, Scotiabank raised its price goal on ESS to $282 from $278. It maintained an Outperform rating on the shares. The firm said it is updating price targets for the U.S. multifamily REITs under its coverage. Scotiabank expects a slower recovery across Sunbelt markets, estimating that it could take several years to absorb the excess supply created by overbuilding in many of those areas. The firm added that Essex Property remains one of its preferred multifamily names because of its exposure to Northern California.
Essex Property Trust, Inc. (NYSE:ESS) is a self-administered and self-managed real estate investment trust. The company acquires, develops, redevelops, and manages apartment communities in selected residential areas along the West Coast of the United States.
7. C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)
Number of Hedge Fund Holders: 48
On May 20, Jefferies upgraded C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) to Buy from Hold. It also lifted the price target to $200 from $195. Analyst Stephanie Moore said a visit to the company’s headquarters “materially reinforced” its conviction in C.H. Robinson’s technology and productivity transformation. Jefferies also said the regulatory environment following the Montgomery versus Caribe Transport Supreme Court ruling structurally favors larger, scaled brokers. The analyst added that the company’s balance sheet positions it as a “natural consolidator,” according to a research note. The firm believes current share levels offer a “compelling entry point” for investors.
On May 15, JPMorgan added CHRW to its Analyst Focus List while maintaining an Overweight rating on the shares. The firm said the Supreme Court’s Montgomery versus Caribe Transport ruling exposes brokers to the same negligent hiring liability faced by carriers. JPMorgan believes smaller truckload carriers and brokers could gradually leave the market as the expanded liability leads to higher compliance and insurance costs. The firm also said the market may be underestimating Robinson’s scale advantages in a post-Montgomery environment.
C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is a global logistics provider. The company operates through its North American Surface Transportation (NAST), Global Forwarding, and All Other and Corporate segments.
6. Ecolab Inc. (NYSE:ECL)
Number of Hedge Fund Holders: 60
On May 27, UBS upgraded Ecolab Inc. (NYSE:ECL) to Buy from Neutral. It also raised its price target on the stock to $325 from $293. The firm said it expects the shares to re-rate higher as investors see Ecolab’s pricing accelerate in the second half of 2026 to offset raw material costs.UBS also believes the company could gain market share in consumer markets through its “OneECL” initiatives. In a research note, the analyst said Ecolab’s growing exposure to high-tech and faster-growing industries may help increase its annual volume growth to 4%, compared to its historical range of 1% to 2%.
On May 20, Jefferies lowered its price recommendation on ECL to $345 from $352. It reiterated a Buy rating on the shares. The firm said Ecolab highlighted its “Circle-the-Customer” model during a well-attended presentation at the NRA show. According to the analyst, the model focuses on delivering enterprise-wide outcomes by combining chemistry, equipment, and digital insights to create long-term efficiency gains and stronger pricing power. Jefferies is projecting a 5.1% sales CAGR and an 11.5% EPS CAGR through 2028.
Ecolab Inc. (NYSE:ECL) provides water, hygiene, and infection prevention solutions and services designed to protect people and resources essential to life.
While we acknowledge the potential of ECL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ECL and that has 100x upside potential, check out our report about the cheapest AI stock.
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