5 Best Low Volatility Stocks to Buy Now

In this article, we discuss the 5 best low volatility stocks to buy now. If you want to see more stocks in this selection, check out the 12 Best Low Volatility Stocks to Buy Now.

5. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 75

Beta Value: 0.35

Merck & Co., Inc. (NYSE: MRK) is a renowned American multinational pharmaceutical company with its headquarters situated in Rahway, New Jersey. Originally the American arm of the Merck Group, founded in Germany in 1668, it carries the name of its former parent company. Operating as Merck Sharp & Dohme or MSD outside the United States and Canada, the company holds a prominent position in the pharmaceutical industry, specializing in the development of medicines, vaccines, biologic therapies, and animal health products.

On May 23, Merck & Co., Inc. (NYSE:MRK) declared a $0.73 per share quarterly dividend, in line with the previous. The dividend was payable on July 10, to shareholders of record on June 15.

Insider Monkey dug through 943 hedge funds for their first quarter of 2023 investments to discover that 75 had invested in Merck & Co., Inc. (NYSE:MRK). Ken Fisher’s Fisher Asset Management is the biggest shareholder, owning a $1.3 billion stake.

Here’s what Aristotle Capital Management, LLC said about Merck & Co., Inc. (NYSE:MRK) in its Q4 2022 investor letter:

“Founded in 1891 and headquartered in New Jersey, Merck & Co., Inc. (NYSE:MRK) is one the world’s largest pharmaceutical firms. The company’s drugs are used to treat conditions in a variety of areas, including oncology (~38% of revenue), vaccines (~19%), diabetes (~11%), animal health (~11%) and other (~21%). Merck produced over $48 billion in sales in 2021, just under half of which were generated in the United States. Within oncology, the firm’s immuno-oncology platform is becoming a major contributor to overall sales, driven by the blockbuster1 drug Keytruda. The company’s vaccine business is also significant and includes Gardasil for the prevention of HPV (the disease that can lead to cervical cancer in women), as well as vaccines for hepatitis B, pediatric diseases and shingles. In recent years, Merck has been shifting its focus toward unmet medical needs in specialty-care areas. As part of this shift in focus, in June 2021, Merck received $9 billion from the spinoff of its women’s health, established brands, and biosimilars businesses into the now independent, publicly traded company Organon…” (Click here to read the full text)

4. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 86

Beta Value: 0.54

Johnson & Johnson (NYSE:JNJ) is an American multinational corporation founded in 1886 that is known for developing medical devices, pharmaceuticals, and consumer packaged goods. The pharmaceutical company maintains a 62-year track record of consistent dividend growth. It pays a quarterly dividend of $1.19 per share and has a dividend yield of 2.99%, as of July 19.

The number of hedge funds tracked by Insider Monkey owning stakes in Johnson & Johnson (NYSE:JNJ) grew to 86 in Q1 2023, from 84 in the previous quarter. These stakes have a consolidated value of over $4.5 billion. Johnson & Johnson (NYSE:JNJ)’s largest hedge fund investor is Ken Fisher’s Fisher Asset Management with a $967 million stake.

3. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 91

Beta Value: 0.50

Walmart Inc. (NYSE:WMT) stands as an American multinational retail corporation, running a network of hypermarkets, discount department stores, and grocery stores across the United States. Its headquarters are located in Bentonville, Arkansas. The multinational retail corporation has been raising its dividends for 50 years straight and currently pays a quarterly dividend of $0.57 per share.

In the first quarter, Walmart Inc. (NYSE: WMT) reported an adjusted EPS of $1.47, exceeding estimates by $0.15. Additionally, the company’s revenue for the quarter witnessed a year-over-year increase of approximately 7.6%, reaching $152.3 billion, which surpassed estimates by $4.39 billion.

Walmart Inc. (NYSE:WMT) was a popular stock among hedge funds in Q1 2023, as hedge fund positions in the company jumped to 91, from 66 in the previous quarter, as shown by Insider Monkey’s database. The stakes owned by these hedge funds have a consolidated value of over $5.6 billion. Investment firm D E Shaw proved to be the companies biggest shareholder, with stakes worth approximately $709.85 million.

2. Berkshire Hathaway Inc. (NYSE:BRK-A)

Number of Hedge Fund Holders: 108

Beta Value: 0.87

Berkshire Hathaway Inc. (NYSE: BRK-A) is a leading American multinational conglomerate holding company based in Omaha, Nebraska, United States. Its primary business and source of capital stem from the insurance sector, utilizing the float to invest in a wide-ranging portfolio of subsidiaries, equity positions, and other securities. The firm has crafted a diversified investment portfolio that spans across diverse industries, such as consumer discretionary, consumer electronics, banking, finance, and energy.

As of the first quarter of 2023, 108 of the 943 hedge funds surveyed by Insider Monkey had invested in the investor of investors. Berkshire Hathaway Inc. (NYSE:BRK-A)’s largest hedge fund shareholder proved to be the Bill & Melinda Gates Foundation Trust, which held $6.08 billion worth of shares.

1. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 116

Beta Value: 0.66

UnitedHealth Group Incorporated (NYSE:UNH) is an American multinational managed healthcare and insurance company based in Minnetonka, Minnesota. One of the biggest healthcare companies in America, it operates through the following segments: UnitedHealthcare, OptumHealth, OptumInsight, and OptumRx.

UnitedHealth Group Incorporated (NYSE:UNH) exceeded Wall Street expectations with its Q2 financial results announced on July 14. The company reported a non-GAAP EPS of $6.14, surpassing estimates by $0.16. Additionally, its revenue for the quarter reached $92.9 billion, outperforming predictions by $1.94 billion.

According to Insider Monkey’s first quarter database, 116 hedge funds were bullish on UnitedHealth Group Incorporated (NYSE:UNH), compared to 110 funds in the prior quarter. Rajiv Jain’s GQG Partners is the leading stakeholder of the company, with approximately 4 million shares worth $2.10 billion.

ClearBridge Large Cap Value Strategy made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its first quarter 2023 investor letter:

“The tech-dominated quarter was a headwind for both defensive and cyclical sectors, with shares of health care holdings such as UnitedHealth Group Incorporated (NYSE:UNH), Elevance (ELV) and Johnson & Johnson (JNJ) declining after a strong 2022.”

You can also take a look at 11 Cheap Restaurant Stocks to Buy Now and 13 Most Promising Robotics Stocks According to Analysts.