In this article, we discuss the 12 safe stocks to buy for the long term in 2025.
The US stock market is often regarded as one of the most reliable and resilient financial markets in the world. With its deep liquidity, broad participation, and historical ability to recover from downturns, it has long been a cornerstone of wealth creation for individual and institutional investors. While it is subject to short-term volatility, its long-term performance and structural advantages make it a reliable platform for investment. It has a proven track record of delivering strong returns over the long term. The S&P 500, a benchmark index that represents the performance of 500 large-cap US companies, has averaged an annual return of approximately 10% since its inception in 1926. While short-term fluctuations are inevitable, the market’s historical trajectory has been one of growth, driven by corporate innovation, economic expansion, and rising consumer demand.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
During major crises such as the Great Depression, the 2008 financial crisis, and the COVID-19 pandemic, the market experienced sharp declines but eventually rebounded to new highs. For example, after the COVID-19 crash in March 2020, the S&P 500 recovered within six months and went on to hit record levels, underscoring its resilience. One of the key factors contributing to the reliability of the US stock market is its breadth and diversity. The market includes a wide array of industries, from technology and health care to consumer goods and energy, allowing investors to diversify their portfolios to reduce risk. Additionally, US exchanges like the New York Stock Exchange and Nasdaq are among the most liquid in the world, making it easy for investors to buy and sell shares efficiently. This liquidity and diversification provide a level of stability that is unmatched in many other markets, offering investors confidence in the market’s ability to withstand shocks and recover from volatility.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected stocks that have solid businesses with recurring revenue streams, reliable dividend payouts, and burgeoning growth pipelines. These stocks are also popular among hedge funds. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Safe Stocks to Buy for the Long Term in 2025
12. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 70
Bristol-Myers Squibb Company (NYSE:BMY) is a New York-based pharmaceutical company. This company stands out as a worthwhile investment due to various compelling reasons. To begin, the company has shown strong performance in dividend growth, with 8 consecutive years of increases, surpassing the sector median of 2 years by 300%. In addition, the company has also maintained 35 consecutive years of dividend payments, outperforming the sector median of 15 years by 133%. These metrics reflect the company’s ability to deliver valuable returns to shareholders and its strong financial health. Lastly, the company and Cellares have announced a worldwide capacity reservation and supply agreement for the manufacture of CAR T cell therapies in a transaction valued at up to $380 million in upfront and milestone payments. This agreement would strengthen Bristol Myers Squibb’s existing global network of state-of-the-art cell therapy manufacturing facilities and provide increased agility, improved scalability and potential to improve turnaround time to support the company’s CAR T inline and pipeline assets.
11. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 72
Comcast Corporation (NASDAQ:CMCSA) operates as a media and technology company worldwide. This company shines as a great investment for multiple reasons. It has shown remarkable dividend growth with 10 consecutive years of increases, outperforming the sector median of just 0.9 years by 1,041%. The company has also maintained 15 consecutive years of dividend payments, surpassing the sector median of 9.3 years by 61%. This highlights the company’s strong commitment to delivering consistent dividend growth and reliable returns. The company is exploring the separation of the cable networks business, aiming to address challenges from cable TV cord-cutting and boost profitability for the Peacock streaming service. Lastly, the company has launched Sports & News TV, a new video package for Xfinity Internet customers that brings together live news, top sporting events from NFL, NBA, NHL, MLB and NCAA, hit movies and shows, and primetime TV all in one place.
10. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 75
Costco Wholesale Corporation (NASDAQ:COST) engages in the operation of membership warehouses. There are several aspects that make this company an attractive investment choice. First and foremost, the company’s strong dividend growth performance has surpassed the sector median of 2 years by 900% in 20 consecutive years of increases. Additionally, the company has maintained 20 consecutive years of dividend payments, outperforming the sector median of 14.1 years by 41%. This shows the company’s commitment to its shareholders. Secondly, the company plans to open 29 locations during the 2025 fiscal year, including 26 brand-new warehouses and three relocations of existing warehouses, totaling 26 new locations that are slated to open during that time period.
9. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 78
Union Pacific Corporation (NYSE:UNP) operates in the railroad business in the United States. There are various reasons why this company makes an excellent investment. First and foremost, the company’s impressive dividend growth with 18 consecutive years of increases, greatly surpassing the sector median of 2.4 years by 686%. Secondly, the company has also maintained 35 consecutive years of dividend payments, outperforming the sector median of 13.2 years by 164%. This reflects the company’s financial strength and its efforts to return value to its shareholders with consistent dividend growth over an extended period. Moreover, Union Pacific Corp has advanced its core operating platforms, including Positive Train Control (PTC), Computer-Aided Dispatch (CADx), and Transportation Management (NetControl), which would improve safety. Lastly, the company has installed Precision Gate Technology (PGT) that allows for efficient access to and from ramps and a rolling-gate experience for drivers, reducing the time it takes to find and drop off containers.
8. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 80
Pfizer Inc. (NYSE:PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. This company stands as a top investment choice for a variety of reasons. To begin with, the report for the third quarter shows a compelling investment opportunity. The company reported revenues of $17.7 billion, representing 32% year-over-year operational growth. Also, revenues were $13.6 billion, excluding the company’s COVID-19 products, which reflects an operational increase of 14% compared with the prior-year quarter. This underscores the company’s strong financial growth driven by a combination of contributions from Pfizer’s Oncology products, key in-line products, recent commercial launches, and heightened demand for its COVID-19 oral treatment. Secondly, the company has collaborated with The City University of New York (CUNY) Institute for Implementation Science in Population Health (ISPH), which has initiated a critical two-year prospective epidemiologic study to track acute respiratory infections across the United States.
7. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 81
Johnson & Johnson (NYSE:JNJ) researches and develops, manufactures, and sells various products in the healthcare field. There are various reasons why this company makes an excellent investment. First and foremost, as per the report for the fourth quarter of 2024, full-year reported sales growth reached 4.3% to $88.8 billion, with operational growth at 5.9% and adjusted operational growth at 5.4%. Moreover, operational growth excluding COVID-19 Vaccine was 7%, which demonstrates sustainable revenue growth from core operations, ensuring long-term financial stability and shareholder confidence. In addition to this, the company has acquired all outstanding shares of Intra-Cellular Therapies for $132 per share in cash for a total equity value of approximately $14.6 billion. This acquisition would differentiate the company’s portfolio and would serve as a strategic near- and long-term growth catalyst for the company, adding value to patients, health systems and shareholders. Lastly, the company has initiated the submission of an original New Drug Application with the US Food and Drug Administration (FDA) for TAR-200 for the treatment of patients with Bacillus Calmette-Guérin (BCG)-unresponsive high-risk non-muscle-invasive bladder cancer (HR-NMIBC) with carcinoma in situ (CIS), with or without papillary tumors.
6. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 88
Walmart Inc. (NYSE:WMT) engages in the operation of retail, wholesale, and other units worldwide. There are several aspects that make this company an attractive investment choice. First and foremost, the company has an exceptional record of 52 consecutive years of dividend growth, outperforming the sector median of 2 years by 2,450%. Also, the company has surpassed the sector median of 14.1 years by 260% by maintaining 51 consecutive years of dividend payments. This shows the company’s ability to generate consistent returns and its strong financial performance. Secondly, the company has also experienced a 27% increase in e-commerce sales in the third quarter, reflecting the company’s successful integration of online and offline shopping experiences. Lastly, the company also plans to diversify its revenue streams by expanding into higher-margin areas such as financial services, advertising, and data monetization.
5. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Hedge Fund Holders: 98
Thermo Fisher Scientific Inc. (NYSE:TMO) offers life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and services worldwide. This company is a great investment prospect due to numerous factors. For example, the company has shown strong dividend growth with 7 consecutive years of increases, outperforming the sector median of 2 years by 250%. This dividend history represents the company’s ability to return value to its shareholders. Secondly, the company’s Olink Explore Platform has been selected by UK Biobank Pharma Proteomics, which will support the world’s largest human proteomics study of its kind. It aims to analyze more than 5,400 proteins from 600,000 samples to fuel the discovery of new protein biomarkers that can be used to predict, diagnose and treat diseases. The company’s Olink seamlessly connects Genomics and Proteomics, empowering researchers to uncover the dynamic mechanisms underlying biology.
4. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 112
United Group Incorporated (NYSE:UNH) operates as a diversified healthcare company in the United States. This company offers significant investment potential for multiple reasons. Firstly, as per the report for the third quarter of 2024, total net earnings were $15.51, $5.98 per share, highlighting solid profitability and effective operations. Secondly, adjusted net earnings were $27.66, or $6.81 per share, which demonstrates the company’s core profitability, offering a stronger picture of its sustainable business performance. Moreover, the company plans to team up with leading tech companies in the wearable world, offer packages that measure patients’ vital signs, and provide both the patients and providers in real-time with updates on their health status.
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 128
Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor infrastructure software solutions. This company is a great investment prospect due to numerous factors. For example, as per the report for the fourth quarter of 2024, the quarterly common stock dividend increased by 11% from the prior quarter to $0.59 per share, which demonstrates positive financial health. In addition, the company has been surpassing the sector median of 2 years by 600% in 14 consecutive years of dividend growth. The company has also maintained 14 consecutive years of dividend payments, slightly outperforming the sector median of 12 years by 16%. This reflects Broadcom’s strong financial stability and commitment to rewarding shareholders over an extended period. Moreover, the company plans to launch its custom chip unit, which makes AI processors for cloud providers. This development aims to enhance semiconductor speeds amid escalating demand for generative artificial intelligence infrastructure. Lastly, VMware’s cloud and virtualization solutions have enabled Broadcom to expand its software offerings, resulting in a more substantial alignment between its hardware and software portfolios.
2. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 165
Visa Inc. (NYSE:V) is a California-based payments technology firm. This company stands out as a worthwhile investment due to various compelling reasons. To begin, the company has a strong dividend growth with 16 consecutive years of increases, surpassing the sector median of 2.1 years by 660%. In addition, the company has also maintained 16 consecutive years of dividend payments, outperforming the sector median of 13.3 years by 20%. This shows the company is strongly committed to providing value to shareholders. In addition, the company plans to acquire Featurespace, a developer of real-time AI payments protection technology, which will enable Visa to provide enhanced fraud prevention tools to clients and protect consumers in real-time across various payment methods. Lastly, the company has also launched Visa Provisioning Intelligence, utilizing machine learning to predict the probability of fraud in token provisioning requests, empowering financial institutions to combat token fraud at its source.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. This company is a great investment prospect due to numerous factors. For example, the company’s commitment to rewarding investors is reflected in the report for the fourth quarter of 2024, as it returned $8.4 billion to shareholders in the form of share repurchases and dividends. Notably, the company has surpassed the sector median of 1.7 years by 1,091% in 20 consecutive years of dividend increases, showing impressive performance in dividend growth. The company has maintained 20 consecutive years of dividend payments, outperforming the sector median of 11.3 years by 76%, demonstrating the company’s strong financial portfolio and long-term commitment to shareholders. Moreover, the company, with Azure AI, is building out the app server for the AI age, providing access to the most diverse selection of models to meet customers’ unique cost, latency, and design considerations.
While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than Microsoft Corporation (NASDAQ:MSFT) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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