In this article, we will look at 10 safest stocks to invest in.
2022 got off to a rough start. With the consumer-price index recording historic highs in February and March and the Fed’s efforts to regulate inflation by raising interest rates, all that was needed for everything to go South was a massive supply chain disruption which was successfully accomplished by Russia’s invasion of Ukraine. Taking a look back to the beginning of 2022, the consumer price index rose 7.9% year-over-year in February, attaining a historic high. Moving on to March 2022, the CPI recorded an 8.5% rise compared to March 2021, the highest since December 1981. In April, the CPI rose 8.3% year over year. On March 16, the Fed issued its first interest rate hike since December 2018, and increased interest rates by 0.25% as the CPI rose to attain all-time highs since the 1980s. The Fed issued its second interest rate hike on May 5 when it rose interest rates by 0.50%, bringing to range between 0.75% and 1%.
The Ukraine conflict served as fuel to the fire. Just when the world bid “good riddance” to the pandemic, and a slowly growing and recovering global economy set itself in motion, Russia’s declaration of war on Ukraine provided a major headwind. Not only did it result in massive supply chain disruptions, but the war caused markets to become historically volatile. Prices of commodities skyrocketed. The increased volatility even resulted in halting trading on the London Metal Exchange, when nickel broke its record and soared to trading over $100,000 per megatonne on March 7 and then sharply falling to roughly half that value on March 8. The price of Brent crude oil almost hit $140 per barrel in March 2022, and as of this June, crude oil prices are nearing $125 per barrel. Global inflation, rising interest rates, and highly volatile markets are leaving investors baffled as to where they should best put their money to retain profitability or at least break even.
There are, however, sectors that tend to exhibit inflation-resistant behaviors and are known to weather well through times of economic strife. Industry-leading names that have a reputation for profitability in both good and bad times are often sought after by investors to fall back on during times when business is in the doldrums. Such companies are also known as blue-chip companies and are typically highly ranked in top blue-chip indices such as the S&P 500 and the Dow Jones Industrial Average.
Some of the most prominent blue-chip companies include Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Apple Inc. (NASDAQ:AAPL). However these companies are suffering major declines from the tech sell-off that initiated in May 2022 due to macro-economic headwinds such as the Ukraine conflict, Covid-19 related lockdowns in China, and global economic stagnation.
These three tech giants have reportedly constituted the most to the $1 trillion losses incurred by the tech industry during this May’s tech selloff. In this article, we will explore companies that have proven track records of sustaining their performance in all economic cycles, and therefore serve as the safest and most reliable investment options.
Photo by Tech Daily on Unsplash
Our Methodology
To determine the 10 safest stocks to invest in, we conducted extensive research on industrial sectors that demonstrate robustness in all economic phases and especially during a recession. The key to building a safe and reliable investment portfolio is to diversify investments across a wide array of industries to mitigate and manage risk. Another key ingredient that makes a stock safe is dividends, which is why most of our stock picks are dividend-paying companies.
Along with each stock we have mentioned the analyst rating and investor sentiment for it. We derived the hedge fund sentiment from Insider Monkey’s database which, as of the first quarter of 2022, keeps track of roughly 900 elite hedge funds. We believe analyst and investor sentiment to be fundamental indicators for gauging a stock’s upside, and therefore provide our readership with relevant context to strengthen their due diligence and make informed investment decisions.
Now that we have understood what makes a stock safe and reliable, let’s dive into the list of 10 safest stocks to invest in.
Safest Stocks To Invest In
10. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 22
Realty Income Corporation (NYSE:O) is an S&P 500 REIT and is adored by many because of its consistent monthly dividends which are supported by cash flow from 11,280 real estate properties owned under long-term lease agreements with commercial clients. The company’s monthly dividend payments allow for investors to fall back on during times of economic uncertainty, and therefore makes it one of the safest stocks to invest in now. As of this May, Realty Income Corporation (NYSE:O) has declared 623 consecutive common stock monthly dividends since inception and has a track record of raising its dividend payouts over 110 times.
On May 17, Realty Income Corporation (NYSE:O) declared a monthly cash dividend of $0.247 per share. The dividend is payable on June 15, to investors of record on June 1. As of June 9, Realty Income Corporation (NYSE:O) has a forward dividend yield of 4.35% and has a record of growing its dividends for over 25 years, with a 5-year dividend CAGR of 3.75%.
As of May 23, Wolfe Research analyst Andrew Rosivach has a Peer Perform rating on Realty Income Corporation (NYSE:O) and a $73 price target on the shares.
At the end of the first quarter of 2022, 22 hedge funds were long Realty Income Corporation (NYSE:O) with stakes worth $284.88 million. Of these, Glendon Capital Management was the most prominent shareholder, owning more than 1.8 million shares of the company which amounted to a stake of $128.68 million.
Realty Income Corporation (NYSE:O) is among high-end blue-chip companies and unlike Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Apple Inc. (NASDAQ:AAPL), has managed to sustain its performance amidst economic stagnation.
9. Phillips 66 (NYSE:PSX)
Number of Hedge Fund Holders: 41
Phillips 66 (NYSE:PSX) is a leading American multinational energy manufacturing and logistics company. The company operates through four business segments: Midstream, Chemicals, Refining, and Marketing and Specialties. On June 1, Phillips 66 (NYSE:PSX) announced that it has entered into a strategic collaboration with FreeWire Technologies to help develop its first electric vehicle charging project in the United States. Phillips 66 (NYSE:PSX) will install FreeWire Technologies’ battery-enabled charges at its roughly 7000 premium retail fuel sites across the country. It is one of the few energy giants that is also making strides in the electric vehicle space, and with the ongoing EV boom, Phillips 66 (NYSE:PSX) is a compelling stock option to consider for the long term.
Another reason why Phillips 66 (NYSE:PSX) is one of the safest investment options to consider is because of the company’s undervalued nature and its dividend capacity. As of June 9, Phillips 66 (NYSE:PSX) has a forward dividend yield of 3.52%, a forward PE ratio of 9.71, and on top of this, the stock has appreciated by 19.25% over the past twelve months.
Analysts are bullish on Phillips 66 (NYSE:PSX). On May 23, Piper Sandler analyst Ryan Todd raised his price target on Phillips 66 (NYSE:PSX) to $120 from $119 and maintained an Overweight rating on the shares.
Hedge funds are piling into Phillips 66 (NYSE:PSX). At the end of the first quarter of 2022, 41 hedge funds were bullish on Phillips 66 (NYSE:PSX) and held stakes worth $1.38 billion in this company. This is compared to 41 positions in the prior quarter with stakes worth $927.41 million.
As of March 31, Millennium Management is the leading shareholder in Phillips 66 (NYSE:PSX) owning over 2.9 million shares of the company. The fund’s stakes were valued at $256.53 million.
Phillips 66 (NYSE:PSX) has gained a reputation for demonstrating financial robustness and is among the least volatile and best performing stocks. Blue chip stocks that are vulnerable to near-term headwinds and are suffering losses include Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Apple Inc. (NASDAQ:AAPL).
8. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 61
Costco Wholesale Corporation (NASDAQ:COST) is the second-largest retail store in the world. The consumer staples sector is known to be the safest bet since consumers do not stop spending on basic necessities even amidst price hikes. Costco Wholesale Corporation (NASDAQ:COST) has a proven track record for profitability and an industry-wide reputation for its products and services.
On April 26, Costco Wholesale Corporation (NASDAQ:COST) announced earnings for the fiscal third quarter of 2022, in which it outperformed market consensus once again. The big-box retail giant reported earnings per share of $3.04 and beat EPS estimates by $0.02. Costco Wholesale Corporation (NASDAQ:COST) also reported quarterly revenue of $52.60 billion, up 16.16% year over year, and exceeded expectations by $1.11 billion. Moreover, on June 2, Costco Wholesale Corporation (NASDAQ:COST) reported increased sales volumes of $18.23 billion for May, up 16.9% year over year. As of June 9, the stock’s trailing-twelve-month returns are up 23.17%.
This June, Jefferies analyst Corey Tarlowe raised his price target on Costco Wholesale Corporation (NASDAQ:COST) to $580 from $560 and reiterated a Buy rating on the shares.
At the close of Q1 2022, 61 hedge funds were long Costco Wholesale Corporation (NASDAQ:COST), with stakes totaling $5.41 billion. This is compared to 57 positions in the previous quarter with stakes of $5.40 billion. The hedge fund sentiment for the stock is positive.
Fisher Asset Management raised its Q4 2021 stakes in Costco Wholesale Corporation (NASDAQ:COST) by 4% in the first quarter of 2022. As of March 31, Ken Fisher’s hedge fund owns more than 4.2 million shares of the company which amounts to a stake of $2.43 billion. Fisher Asset Management is the most prominent shareholder in Costco Wholesale Corporation (NASDAQ:COST)
Here is what ClearBridge Investments had to say about Costco Wholesale Corporation (NASDAQ:COST) in its “Sustainability Leaders Strategy” fourth-quarter 2021 investor letter:
“Portfolio gains were led by a diverse group of contributors. Also in consumer discretionary, Costco, which operates a chain of membership-only big-box retail stores, continues to impress as it takes to share and becomes more relevant for the consumer even as the world opens up.”
7. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 64
The Coca-Cola Company (NYSE:KO), an investors’ favorite dividend stock pick, also happens to be one of the safest stocks to invest in now. Hedge funds are raising their stakes in the beverages giant. Insider Monkey found that at the close of Q1 2022, 64 hedge funds held stakes in The Coca-Cola Company (NYSE:KO) worth $29.17 billion. This is compared to 70 positions in the prior quarter with stakes worth $28.61 billion.
The Coca-Cola Company (NYSE:KO) has consistently grown its dividends for well over 50 years, making it rank among the top dividend kings. Dividend-paying stocks offer investors an inflation hedge and therefore prove suitably safer investment options for volatile times. As of June 9, The Coca-Cola Company (NYSE:KO) has a forward dividend yield of 2.78% and a 5-year dividend CAGR of 3.66% along with an annual payout ratio of 70.25%.
On April 27, The Coca-Cola Company (NYSE:KO) declared a quarterly cash dividend of $0.44 per share. The company will be going ex-dividend on June 14 and paying out the common-stock cash dividend on July 1.
On May 9, BofA added The Coca-Cola Company (NYSE:KO) to its “US 1” list, which includes the collection of its best investment ideas drawn from the universe of Buy-rated, U.S.-listed stocks.
The Coca-Cola Company (NYSE:KO) is one of Warren Buffett’s top stock picks and is among his hedge fund’s top 5 holdings. As of March 31, Berkshire Hathaway owns 400 million shares of The Coca-Cola Company (NYSE:KO) which amounts to a stake value of $24.79 billion. Berkshire Hathaway is the top shareholder in the beverages giant.
ClearBridge Investments recently published its “Dividend Strategy” fourth-quarter 2021 investor letter in which it mentioned The Coca-Cola Company (NYSE:KO). Here is what the firm had to say:
“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (Coca-Cola). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”
6. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 69
Verizon Communications Inc. (NYSE:VZ), a telecommunications giant, is one of the best blue-chip safest investment options to consider right now. Like other stocks mentioned on our list, Verizon Communications Inc. (NYSE:VZ) is a dividend-paying company that provides unparalleled communication services all over the world. Moreover, Verizon Communications Inc. (NYSE:VZ) is undervalued, which adds more reason to consider investing in it for potentially explosive returns. As of June 9, Verizon Communications Inc. (NYSE:VZ) has a forward dividend yield of 4.96% and a forward price-to-earnings ratio of 9.56.
On May 31, 2022, Verizon Communications Inc. (NYSE:VZ) announced that its board of directors has declared a quarterly cash dividend of $0.64 per share of the company’s common stock. The dividend is payable on August 1, to shareholders of record at the close of business on July 8. The company has been consistent with raising its dividends for roughly 2 decades.
On June 2, Wolfe Research analyst Peter Supino lowered his price target on Verizon Communications Inc. (NYSE:VZ) to $51 from $60 but maintained a Peer Perform rating on the shares.
At the end of the first quarter of 2022, 69 hedge funds were bullish on Verizon Communications Inc. (NYSE:VZ) with stakes worth $4.12 billion.
In the first quarter of 2022, Ken Fisher’s Fisher Asset Management raised its stakes in Verizon Communications Inc. (NYSE:VZ) by 72%, bringing them to $855.15 million. Fisher Asset Management is the leading shareholder in Verizon Communications Inc. (NYSE:VZ) and owns over 16.78 million shares of the company.
ClearBridge Investments also mentioned Verizon Communications Inc. (NYSE:VZ) in its “Dividend Strategy” fourth-quarter 2021 investor letter. Here is what the firm said:
“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like telecom (Verizon). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”
5. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 72
Consumer spending on The Procter & Gamble Company’s (NYSE:PG) 65 individual industry-leading brands such as Pampers, Gillette, Head & Shoulders, Dawn, and Oral-B is expected to remain robust, regardless of inflationary periods and volatile market conditions. This makes The Procter & Gamble Company’s (NYSE:PG) rank high among the safest stocks to invest in now.
As of June 9, The Procter & Gamble Company (NYSE:PG) has returned 7.66% to investors over the past twelve months and has a forward dividend yield of 2.49%. The Procter & Gamble Company (NYSE:PG) is among the top-ranked dividend kings and has consistently hiked its dividends for 65 years, with a 5-year dividend CAGR of 5.48%.
On June 1, Deutsche Bank analyst Steve Powers trimmed his price target on The Procter & Gamble Company (NYSE:PG) to $171 from $177 but reiterated a Buy rating on the shares. Moreover, this May, Morgan Stanley named 15 stocks that can weather a bear market and The Procter & Gamble Company (NYSE:PG) was one of them.
According to Insider Monkey’s database, at the end of Q1 2022, 72 hedge funds were long The Procter & Gamble Company (NYSE:PG) with stakes totaling $6.06 billion. This is compared to 67 positions in the previous quarter with stakes of $6.61 billion.
As of March 31, GQG Partners is the dominating shareholder in The Procter & Gamble Company (NYSE:PG), owning over 9.91 million shares of the company which amounts to a stake value of $1.51 billion. The fund upped its prior stakes in The Procter & Gamble Company (NYSE:PG) by 32% in Q1 2022, and the investment covers 3.51% of its 13F portfolio.
4. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
Johnson & Johnson (NYSE:JNJ) traces its roots back 130 years and has since been innovating and revolutionizing the healthcare industry. It is among the most premium healthcare brands in the industry and boasts a portfolio of over 100 brands. Johnson & Johnson (NYSE:JNJ) is also a prominent dividend king, having been consistent with growing its dividends for well above 50 years, making it one of the safest and most reliable bets for investors. As of June 9, Johnson & Johnson (NYSE:JNJ) has a forward dividend yield of 2.53% and boasts a 5-year CAGR of 5.87%.
Johnson & Johnson (NYSE:JNJ) is effectively working on beating cancer, and announced interim data for its oral cancer therapy, FGFR kinase inhibitor. The company reported that 29.2% of its 178 subjects with FGFR-driven solid tumors responded positively to the treatment and showcased reduced and deteriorated tumor cells. Moreover, the disease control rate for the study was reported to be 72.5%. The company’s efforts in the healthcare industry are unparalleled, making Johnson & Johnson (NYSE:JNJ) a leading pharmaceutical giant.
On May 23, SVB Leerink analyst David Risinger assumed coverage of Johnson & Johnson (NYSE:JNJ) with an Outperform rating and a $200 price target.
At the close of Q1 2022, 83 hedge funds held stakes in Johnson & Johnson (NYSE:JNJ). The total value of these stakes came in at $7.40 billion, up from $7.38 billion in the preceding quarter with 83 positions.
In the first quarter of 2022, Arrowstreet Capital raised its stakes in Johnson & Johnson (NYSE:JNJ) by 38%, bringing them to $1.17 billion. Arrowstreet Capital is the top shareholder in the company and the investment covers 1.47% of its 13F portfolio.
3. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 89
Union Pacific Corporation (NYSE:UNP) is a leading and one of the largest railroad companies in the world. The company operates North America’s premier railroad franchise, with 8,000 locomotives that cover 32,000-mile routes that span over 23 U.S. states west of Chicago and New Orleans. Railroads are one of the most lucrative industries in the United States, and Union Pacific Corporation (NYSE:UNP) is expected to sustain its profitability in the years to come due to its market-leading position, which makes it rank among the top five safest stocks to invest in now.
Another reason why Union Pacific Corporation (NYSE:UNP) might be a safe bet for investors is the company’s young, but strong, dividend history. Union Pacific Corporation (NYSE:UNP) has been consistent with growing its dividends for 6 years now and as of June 9, the stock has a forward dividend yield of 2.27% and a 5-year dividend growth rate of 14.87%.
As of this April, Goldman Sachs analyst Jordan Alliger has a $276 price target and a Buy rating on Union Pacific Corporation (NYSE:UNP).
Hedge funds are raising their stakes in Union Pacific Corporation (NYSE:UNP). At the end of Q1 2022, 89 hedge funds were bullish on Union Pacific Corporation (NYSE:UNP) with stakes worth $7.03 billion. This is compared to 59 positions in the prior quarter with stakes worth $5.64 billion. The hedge fund sentiment for the stock is positive.
As of March 31, TCI Fund Management is the most prominent shareholder in Union Pacific Corporation (NYSE:UNP) owning over 5.25 million shares of the company. The fund’s stakes in the railroad giant amounted to $1.43 billion, which covers 3.89% of its investment portfolio.
Here is what ClearBridge Investments had to say about Union Pacific Corporation (NYSE:UNP) in its “Global Infrastructure Value Strategy” fourth-quarter 2021 investor letter:
“On a regional basis, the U.S. and Canada was the top contributor to quarterly performance, of which U.S. rail operator Union Pacific was among the lead performers. Union Pacific is the largest listed railroad company in North America. With a rail network of over 32,000 route miles connecting Pacific Coast and Gulf Coast ports with the Midwest and Eastern U.S. gateways, its freight transportation services are crucial to the functioning of the U.S. economy.”
2. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 104
Investing in Berkshire Hathaway Inc. (NYSE:BRK-B) can be the same as investing in a high-quality ETF, simply because of the conglomerate’s investments in diverse sectors including retail, industrials, consumer staples, utilities, and real estate among others. A diverse portfolio is critical to risk management and maximizing returns, and legendary value investor and CEO of Berkshire Hathaway Inc. (NYSE:BRK-B), Warren Buffett is committed to driving shareholder returns.
Over the past 20 years, Berkshire Hathaway Inc. (NYSE:BRK-B) has returned a median of 10.3% per year on an annualized basis, outpacing the S&P 500’s comparable returns of 9.2% per year. Having a diversified portfolio of investments and a successful track record of returns makes Berkshire Hathaway Inc. (NYSE:BRK-B) one of the safest stocks to invest in now.
Berkshire Hathaway Inc. (NYSE:BRK-B) boasts a track record of reporting robust and strong financial results. On April 30, Berkshire Hathaway Inc. (NYSE:BRK-B) released earnings for the fiscal first quarter of 2022 in which it beat both EPS and revenue estimates. The company reported earnings per share of $3.18, beating estimates by $0.31. Berkshire Hathaway Inc. (NYSE:BRK-B) reported revenue of $70.81 billion for the quarter, up 9.61% year over year, outperforming Wall Street consensus by $1.66 billion. Moreover, as of June 9, Berkshire Hathaway Inc. (NYSE:BRK-B) has returned 6.99% to investors over the past twelve months.
At the end of the first quarter of 2022, 104 hedge funds held stakes in Berkshire Hathaway Inc. (NYSE:BRK-B) worth $19.06 billion. This is compared to 108 positions in the previous quarter with stakes worth $19.31 billion. Of these, Bill & Melinda Gates Foundation Trust was the dominating shareholder in Berkshire Hathaway Inc. (NYSE:BRK-B) owning over 28.68 million shares of the conglomerate. The fund’s stakes were valued at $10.12 billion, which covers 51.22% of its 13F portfolio.
Black Bear Value Partners mentioned Berkshire Hathaway Inc. (NYSE:BRK-B) in its first-quarter 2022 investor letter. Here is what the firm said:
“Below is the rough Berkshire on-a-napkin valuation I like to do periodically. Recently BRK acquired Alleghany for $11.6BB. I assume a reduction in cash for this amount and an increase of $550MM in operating income. I do not give benefit to the increased float nor any synergies. Again, this is a rough exercise to sanity check our assumptions.
Cash of ~$103,000 per class A Share (vs. $104k 1 year ago)
-Down/Base/Up marks cash at book value to an 8% premium (vs. to 10% a year ago)
-Investments based on December prices ~$248,000 per class A share (vs. $194k a year ago)
Presume a range of stock prices that result in:
-Down = $149,000 per class A share (-40%- assumes portfolio is overpriced)
-Base = $211,000 per class A share (-15% – assumes portfolio is overpriced)
-Up = $285,000 per class A share (+15%)
Operating businesses that should generate ~$17,000 of pre-tax income per Class A share (vs. $15k)
-Down = 9x = $153,000 per share – equates to ~8% FCF yield
-Base = 12x = $204,000 – equates to ~6% FCF yield
-Up = 12x = $204,000 – equates to ~6% FCF yield
Overall (vs. $529,000 at quarter end)
-Down = $413,000 (-28%)
-Base = $526,000 (fairly priced)
-Up = $600,000 (13% underpriced)
Going forward I expect Berkshire to compound at good, not great returns. The likely question is why own it at all if we expect modest returns…
BRK is a collection of high-quality businesses, excellent management, and a good amount of optionality in their cash position. If the cash were to be deployed accretively the true value would be greater than an 8% premium (as mentioned above). The combination of a pie that is growing, an increasing share of said pie due to stock buybacks, upside optionality from cash and a tight range of likely business outcomes that span a variety of economic futures gives me comfort in continuing to own Berkshire.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 259
Microsoft Corporation (NASDAQ:MSFT) has established its position as a tech giant over the years of its operation. It is among the top-rated blue-chip stocks that guarantee returns and an inflation hedge. Microsoft Corporation (NASDAQ:MSFT) is one of the few technology stocks that has demonstrated strong financial performance over the past few years and continues to do so, owing to robust demand and preference for its products such as Azure. The company’s Azure platform and other cloud services recorded a 46% year-over-year increase in revenue in the company’s earnings release for the fiscal third quarter of 2022. Microsoft Corporation (NASDAQ:MSFT) also reportedly returned $12.4 billion to investors in the form of share repurchases and dividends in the fiscal third quarter of 2022, up 25% year over year. Solid balance sheets, its industry-leading position in the computing industry, and strong shareholder returns make Microsoft Corporation (NASDAQ:MSFT) one of the safest stocks to invest in.
On April 26, Microsoft Corporation (NASDAQ:MSFT) outperformed Wall Street consensus when it released earnings for the fiscal third quarter of 2022. The company reported earnings per share of $2.22, exceeding EPS estimates by $0.02. The company’s quarterly revenue came in at $49.36 billion, up 18.35% year over year, beating Wall Street estimates by $311.18 million.
Another factor that makes Microsoft Corporation (NASDAQ:MSFT) a safe investment option is the company’s dividend history. Microsoft Corporation (NASDAQ:MSFT) is a notable dividend player and has been growing its dividends for over 18 years now. As of June 9, Microsoft Corporation (NASDAQ:MSFT) has gained 6.63% over the past year and has a forward dividend yield of 0.91% with a 5-year dividend CAGR of 9.60%.
On June 2, Stifel analyst Brad Reback slashed his price target on Microsoft Corporation (NASDAQ:MSFT) to $320 from $350, while maintaining a Buy rating on the shares, noting secular tailwinds, solid execution, and a growing total addressable market driving the company’s growth.
At the close of Q1 2022, 259 hedge funds were long Microsoft Corporation (NASDAQ:MSFT) with stakes worth $65.63 billion in the company.
In the first quarter of 2022, Fisher Asset Management raised its stakes in Microsoft Corporation (NASDAQ:MSFT) by 4%, bringing them to $8.59 billion. Fisher Asset Management is the top shareholder in the company.
Polen Capital recently published its “Polen Global Growth Fund” first-quarter 2022 investor letter in which it mentioned Microsoft Corporation (NASDAQ:MSFT). Here is what the firm said:
“Microsoft’s business is firing on all cylinders and continue to enjoy an acceleration in their respective fundamentals because of the increase in digitization around the world. Nearly every company today is searching for ways to become more digital, and both Microsoft and Accenture are positioned to provide many of the solutions these companies seek. This inflection in fundamentals was not lost on the market, and each business’s stock performed exceptionally well in 2021. In fact, they represented two of the three top absolute performers for the Global Growth Portfolio last year. As a result, their respective stocks are currently more fully priced. As such, we lowered Microsoft from our largest position within the Portfolio. We maintain high conviction in Microsoft and plan to own it for many years, but recognize the increase in its prices.”
You can also take a look at 10 Stocks to Buy and Hold for Long Term According to Warren Buffett and 11 Best Stocks for Long Term Growth.
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Disclose. None. 10 Safest Stocks To Invest In is originally published on Insider Monkey.
