If you have a much lower risk tolerance, the odds are that this pathway of investing is right for you. This is due to its track record of achieving time-tested returns and its ability to outperform the market. Companies operating in this segment are known for their growing revenues, steady earnings and return of capital to shareholders through dividend payments. By selecting well-established companies, investors can mitigate risk and position themselves for potential long term gains.
Now, let’s unravel the top 3 safe stocks to buy and hold for the long term in June 2024.
JPMorgan Chase (JPM)
JPMorgan Chase (NYSE:JPM), the largest bank in the U.S. stands as a pillar of stability in the banking sector. Often associated with its forward-thinking CEO Jamie Dimon, the bank has prospered since taking reins in 2006.
JPMorgan’s diversified business model spans across consumer banking, investment banking, commercial banking and asset management. This diversified approach has contributed immensely to its success over the last decade. Moreover, its fortress balance sheet approach has allowed the company to weather many economic storms and capitalize on an abundance of opportunities. For example, it weathered the 2008 great recessions better than most banks. Additionally, it recently capitalized on the regional banking crisis with the acquisition of First Republic’s consumer loan assets. The bank is now in the greatest shape in its history, after reporting record net interest income (NII) in FY23. Management also raised its NII forecast for the 2024 fiscal year, as well as boosted its investment banking revenue outlook to 30% in Q2. This makes JPM stock one of the best safe stocks to buy and hold for the long haul.
Walmart (WMT)
Walmart (NYSE:WMT), the world’s largest retailer and company by revenue, has cemented its position as a dominant force in the retail industry. The company is off to an incredible start in the 2025 fiscal year, and this growth is likely to continue accelerating.
Walmart stock has been off to an incredible start so far in 2024, rising 26% YTD as compared to the S&P 500’s 15%. It has been embracing the digital age placing extreme focus on its omnichannel strategy. This growing shift away from the retail segment and strong focus on e-commerce has been paying dividends.
Moreover, its pricing power has allowed it to steal market share in the grocery segment. In its latest quarterly financial results, revenue increased 6% year-over-year (YOY) to $161 billion. Global e-commerce sales boomed 21% from the year prior, with continued strength in international markets. Walmart’s omnichannel strategy is working and changing consumer preferences and is adding extra fuel to its business in 2024. With strong guidance for FY25, WMT stock is undoubtedly one of the best stocks to buy and hold for long term investors.
Waste Management (WM)
Waste Management (NYSE:WM) is considered one of the top safe stocks to buy and hold for the long term due to the essential services that it provides. As the largest waste management company in North America, its core operations receive steady demand regardless of economic cycles.
Waste Management’s core operations in waste collection, disposal, and recycling are critical for maintaining public health and environmental sustainability. The company’s diverse customer base comes from the commercial, residential and industrial clients. Additionally, its recent foray into renewable natural gas (RNG) further enhances its long term growth prospects. Wall Street is bullish on its ability to drive the company’s long term free cash flow potential. In Q1 FY24, revenue increased 5% YOY to $5.16 billion. Net earnings increased 33% YOY to $708 million, with adjusted EBITDA margin expanding by 240 basis points. It commissioned a new RNG facility near Dallas, Texas and plans to build 20 new RNG facilities by 2026. CEO James Fish remains confident in its strategy to continue building on momentum in 2024.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.