5 Safest Stocks To Invest In

In this article, we discuss the 5 safest stocks to invest in. If you want to see more stocks in this selection, check out 12 Safest Stocks To Invest In. 

5. Target Corporation (NYSE:TGT)

Number of Hedge Fund Holders: 52

Target Corporation (NYSE:TGT), an American general merchandise retailer, is one of the top picks for a safe stock portfolio. Target Corporation (NYSE:TGT) is set to pay a $1.08 per share quarterly dividend on December 10, to shareholders of record as of November 16. Target Corporation (NYSE:TGT)’s dividend yield on December 1 came in at 2.61%. 

On November 21, Evercore ISI analyst Greg Melich reiterated an In Line rating on Target Corporation (NYSE:TGT) but trimmed the firm’s price target on the shares to $155 from $165. Target Corporation (NYSE:TGT) is “a share gaining multichannel retailer” and he is hopeful the company’s Q3 miss and guide-down “cleared the decks” and allowed for higher confidence that inventories will be back on track by January, the analyst told investors.

According to Insider Monkey’s Q3 database, 52 hedge funds were long Target Corporation (NYSE:TGT), compared to 46 funds in the prior quarter. Ken Fisher’s Fisher Asset Management held the biggest stake in the company, comprising 4.8 million shares worth $711.3 million. 

Here is what Carillon Tower Advisers specifically said about Target Corporation (NYSE:TGT) in its Q2 2022 investor letter:

“Target Corporation (NYSE:TGT) faced its worst day in decades after trimming its profit forecast for the year due to higher costs. While many of the cost pressures are likely to persist in the near term, the company also struggled with a shift in consumer spending, which resulted in inventory write-downs.”

4. Dollar General Corporation (NYSE:DG)

Number of Hedge Fund Holders: 59

Dollar General Corporation (NYSE:DG) is an American discount retailer that provides a range of merchandise products. In times of economic downturns, discount stores tend to see higher traffic and improved returns. On December 1, Dollar General Corporation (NYSE:DG) declared a quarterly dividend of $0.55 per share, in line with previous. The dividend is payable on January 17, 2023 to shareholders of record on January 3. 

On November 29, Deutsche Bank analyst Krisztina Katai raised the price target on Dollar General Corporation (NYSE:DG) to $293 from $265 and maintained a Buy rating on the shares. The analyst told investors to stick with the “winners” in retail.

According to Insider Monkey’s third quarter database, 59 hedge funds were long Dollar General Corporation (NYSE:DG), compared to 51 funds in the earlier quarter. Andreas Halvorsen’s Viking Global held the biggest position in the company, comprising 2.4 million shares worth $582 million. 

Here is what Aristotle Capital specifically said about Dollar General Corporation (NYSE:DG) in its Q2 2022 investor letter:

“Dollar General Corporation (NYSE:DG) contributed to performance in the second quarter following the report of first quarter earnings that were above expectations. Strength in the second quarter was driven by better-than-expected sales of consumable items. Guidance for the remainder of the year was increased. In addition to solid earnings, forecasts for the increasing expectations of a recession drove positive sentiment towards consumer discretionary companies with more predictable revenue like dollar stores.”

3. Philip Morris International Inc. (NYSE:PM)

Number of Hedge Fund Holders: 63

Philip Morris International Inc. (NYSE:PM), an American multinational tobacco company, is one of the safest stocks to monitor. Tobacco and alcohol demand has historically risen during times of economic hardships, as people turn towards substances to deal with the pressure of unemployment and rising inflation. On November 6, the company announced that activist fund Elliott Management put its support behind Philip Morris International Inc. (NYSE:PM)’s $15.7 billion acquisition offer for Swedish Match, allowing the deal to conclude. 

On November 15, Argus analyst David Coleman upgraded Philip Morris International Inc. (NYSE:PM) to Buy from Hold with a $110 price target. The company is working to become a primarily smoke-free business by 2025, the analyst told investors in a research note. He noted that the new reduced-risk products presently account for 30% of Philip Morris International Inc. (NYSE:PM)’s net sales, and the company has also acquired the rights to commercialize IQOS in the U.S. starting on April 30, 2024. The management has raised its dividend as well, which signals higher confidence in the future outlook, the analyst wrote in a research note.

Among the hedge funds tracked by Insider Monkey, 63 funds were bullish on Philip Morris International Inc. (NYSE:PM) at the end of Q3 2022, compared to 56 funds in the prior quarter. Rajiv Jain’s GQG Partners is the leading stakeholder of the company, with 17.4 million shares worth $1.4 billion. 

Here is what Coho Relative Value Equity Fund has to say about Philip Morris International Inc. (NYSE:PM) in its Q3 2022 investor letter:

“Coho is not immune to the earnings pressure exerted by a strong USD, although the portfolio on the whole has modestly less foreign revenue exposure relative to the S&P 500 Index. The two most impacted Coho stocks includes Philip Morris International, which essentially derives all of its revenues outside the U.S. Harkening back to Table 1, the decline in Philip Morris earnings for 2022 versus the reported earnings in 2021 is entirely related to the strengthening dollar. On a constant currency basis, Philip Morris’ earnings in 2022 would be up mid to high single digits.”

2. American Tower Corporation (NYSE:AMT)

Number of Hedge Fund Holders: 62

American Tower Corporation (NYSE:AMT) is one of the largest global REITs that owns, operates, and develops multi-tenant communications real estate in several countries. The company raised its FY 2022 outlook, and now expects total property revenue of $10.395 billion to $10.485 billion, up from the prior outlook of $10.28 billion to $10.46 billion. American Tower Corporation (NYSE:AMT) is one of the safest stocks to consider. 

On November 23, Raymond James analyst Ric Prentiss raised the price target on American Tower Corporation (NYSE:AMT) to $233 from $219 and reiterated an Outperform rating on the shares. The analyst believes that a longer-term debt raise at American Tower Corporation (NYSE:AMT) would come in the 6% zone, which is higher than his last assumption, but is encouraged by the possibility of a stabilization in interest rates that could result in ongoing tower stock outperformance.

According to Insider Monkey’s Q3 data, 62 hedge funds were bullish on American Tower Corporation (NYSE:AMT), compared to 52 funds in the prior quarter. Charles Akre’s Akre Capital Management is the biggest position holder in the company, with approximately 7 million shares worth $1.5 billion. 

Here is what Baron Real Estate Fund has to say about American Tower Corporation (NYSE:AMT) in its Q2 2022 investor letter:

“American Tower is a leading global tower company with 220,000 communication sites globally and over 40,000 in the U.S. We added to our position during the market dislocation and as it became increasingly clear that the company would put permanent equity financing in place at better-than-expected terms for its previously announced acquisition of CoreSite (thereby removing the “equity overhang”).

In addition, the company stepped back from a large potential deal in Europe, which would have required significant incremental funding, due to unfavorable contract terms and price. This decision further reinforced our confidence in management’s capital allocation discipline knowing that these were highly sought-after assets.”

1. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders: 64

ConocoPhillips (NYSE:COP) is an American energy company that produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids worldwide. On November 29, ConocoPhillips (NYSE:COP) and QatarEnergy announced agreements to supply 2 million metric tons of liquefied natural gas per year to Germany for 15 years starting in 2026, as Germany seeks to fulfill its future gas needs following the conclusion of its energy relationship with Russia.

On November 29, Citi analyst Alastair Syme raised the price target on ConocoPhillips (NYSE:COP) to $160 from $132 and kept a Buy rating on the shares. The market rotation into energy equities has “further to run, even though names in our US coverage already sit at all-time highs,” the analyst told investors. History suggests that energy equities usually perform well in an earnings recession, which is Citi’s base-case for 2023, wrote the analyst.

According to Insider Monkey’s data, ConocoPhillips (NYSE:COP) was part of 64 hedge fund portfolios at the end of the third quarter of 2022, compared to 71 funds in the prior quarter. Ric Dillon’s Diamond Hill Capital is a significant position holder in the company, with 6.3 million shares worth $646.7 million. It is one of the safest stocks preferred by elite investors. 

ClearBridge Investments made the following comment about ConocoPhillips (NYSE:COP) in its Q3 2022 investor letter:

“ConocoPhillips (NYSE:COP) handily outperformed the energy sector, which led the value benchmark. Its exposure to natural gas helped the stock perform more in line with natural gas E&Ps, which led the sector due to the European energy crisis and U.S. shale gas being considered a secure long-term source of liquid natural gas. In addition to COP’s low-cost resource base, conservative balance sheet and experienced management team, we appreciate its strong focus on ESG measures, which we believe is a good indicator of the quality of a company’s business model and management team.

Specifically, we appreciate solid governance practices with compensation metrics emphasizing ROCE and relative total shareholder return, the board’s effective oversight of management as well as the company’s methane flaring leadership. COP is investing in field electrification and carbon capture across its portfolio, with ambitions to deliver oil production with a CO2 intensity of sub-5 kg/BOE, which would be one of the lowest emission sources of supply in the world.”

You can also take a look at 10 Best Stocks in Each Sector and 12 Best Defensive Stocks To Buy Now.