In this article, we will take a look at some of the best safe stocks to buy now.
One thing that holds people back from investing is the risk associated with stocks. This is why it’s important to identify stocks that are stable yet forward-looking. In simple terms, safe stocks are companies with a solid balance sheet, consistent earnings, and a compelling business model.
A paper, titled “The Low-volatility Anomaly and the Adaptive Multi-Factor Model,” develops two portfolios: high-volatility and low-volatility, in an attempt to explain the low-volatility anomaly. The findings suggest that the two volatility portfolios are powered by completely different factor exposures, outlining that the better performance of the latter stems from the equilibrium compensation associated with their underlying risk factors.
For investors, this means that investing in safe stocks can deliver strong results, not just because they’re ‘boring’ but because the risk factors that they are tied to are rewarding. As stated by Dan Lefkovitz, an analyst at Morningstar,
“Low-volatility stocks—so looking for stocks that have had, their prices have not bounced around that much in the recent past, haven’t seen big price moves—they were up significantly when the overall market was down.”
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Our methodology:
We have compiled a list of the best safe stocks to buy now. Using the Finviz stock screener, we filtered for large-cap stocks with a beta of under 1 and a P/E ratio of under 25. Additionally, these stocks have a debt-to-equity ratio of under 0.6 and an ROE of over 10%. The stocks are ranked in ascending order according to the number of hedge fund holdings in them, as data extracted from Insider Monkey’s Q2 2025 database.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Sun Life Financial Inc. (NYSE:SLF)
Number of Hedge Fund Holdings: 15
During the first quarter, Goldman Sachs Group Inc. expanded its holdings in Sun Life Financial Inc. (NYSE:SLF) by 282.5%. Following the purchase of 2,050,891 shares of the company’s stock, the investment bank now owns 2,776,920 shares, valued at $159,006,000.
For investors seeking stable income, Sun Life Financial Inc. (NYSE: SLF) is the ideal stock. From an attractive dividend yield to solid underlying earnings and a conservative payout ratio, the company offers what very few do. With a diversified business mix and a strong presence in several markets, the company appears to be in the right direction.
The company’s transition to a capital-light business model isn’t something hidden. During the Barclays 23rd Annual Global Financial Services Conference, management revealed that the strategy adopted by Sun Life Financial Inc. (NYSE:SLF) to enhance its asset management capabilities has really paid off.
Sun Life Financial Inc. (NYSE:SLF) is a Canadian financial services company that offers asset management, wealth, insurance, and health solutions. Founded in 1871, the company is committed to achieving lifetime financial security.
11. TotalEnergies SE (NYSE:TTE)
Number of Hedge Fund Holdings: 23
TD Cowen has reaffirmed its ‘Hold’ rating on TotalEnergies SE (NYSE:TTE) with a price target of $65.00, implying a potential upside of a modest 4.6%, just before the company’s Annual Investor Day planned for September 29.
Earlier on September 15, 2025, TotalEnergies SE (NYSE:TTE) and QatarEnergy joined Iraqi leaders in Baghdad to announce the construction of a massive seawater supply project and the full-scale development of the Ratawi oil field. This deal highlights the last major milestones of the Gas Growth Integrated Project (GGIP), directed by TotalEnergies, together with its collaborators Basra Oil Company and QatarEnergy.
The future of TotalEnergies SE (NYSE:TTE) looks quite promising. By 2030, the company anticipates that 50% of its total revenue will be derived from LNG production and 20% from renewable energy. Overall, the company maintains a strong presence around the world, particularly in Europe and Africa.
TotalEnergies SE (NYSE:TTE), headquartered in Courbevoie, France, is a multi-energy company that specializes in oil and biofuels, natural gas, biogas, and electricity, among others. Founded in 1924, the company operates through five segments.
10. Cincinnati Financial Corporation (NASDAQ:CINF)
Number of Hedge Fund Holdings: 27
According to the latest filing with the SEC, Brendel Financial Advisors LLC raised its position in Cincinnati Financial Corporation (NASDAQ:CINF) by 729.8% in the second quarter. After acquiring 21,114 shares of the company’s stock, the institutional advisor owns 24,007 shares, which translates to an ownership of about 2.0%.
Just recently, Insurer Financial Strength ratings of Cincinnati Financial Corporation (NASDAQ:CINF) were raised by Fitch Ratings to ’AA-’ from ’A+’. Not only this, the credit rating agency also upgraded Issuer Default Rating to ’A+’ from ’A’ and senior unsecured notes to ’A’ from ’A-’. This points to one thing: the company’s stability is clear to all.
This improved outlook underscores the company’s enhanced capitalization and stable underwriting excellence, supported by a robust profile. The agency also noted that Cincinnati Financial Corporation (NASDAQ:CINF) maintains an equity holding that is nearly twice the industry average.
Cincinnati Financial Corporation (NASDAQ:CINF) is an Ohio-based company that offers property casualty insurance products. Incorporated in 1950, the company operates through five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments.
