Written by Demetris Afxentiou at The Motley Fool Canada
Are you looking for some of the safest stocks to buy right now? Today, let’s look south to the U.S. market for some of the safest U.S. stocks to buy right now.
There is so much to love here for everyone
What is there not to love about Walt Disney (NYSE:DIS)? The house of mouse has closed some incredible deals over the years for some stellar brands. That impressive list includes Marvel, Lucasfilm, Pixar Hulu, ESPN, and ABC. Those deals have solidified Disney’s already impressive moat around its well-known studio, merchandise, and theme park businesses.
Beyond that, Disney has also invested in building out its own streaming service, Disney+. To say that venture has been a success would be a gross understatement.
If anything, Disney has accelerated its streaming service into high gear. The segment, which includes Hulu and ESPN+, boasts a whopping 221 million subscribers. Of that total, 152 million are Disney+ subscribers.
That’s not even the best part. Disney+ is still rolling out to new international markets, where it’s expected to hit 260 million subscribers over the next two years. Throw in its complementary core business segments, and you have a solid revenue-generating business.
Prospective investors looking for some final incentive should note that the stock is down over 35% year to date. This makes it a great long-term option to consider that is currently trading at a significant discount.
That potential, along with Disney’s multiple revenue streams makes it one of the safest U.S. stocks right now
You need the right tools to get this stock done
This has been a crazy year. The market has been on a roller coaster, while inflation and interest rates have entered the upper atmosphere. Incredibly, one stock that continues to excel that should be on the radar of investors is Home Depot (NYSE:HD).
But why is Home Depot a great buy as one of the safest U.S. stocks right now? There are a few reasons.
First, the company is evolving. It’s no longer just a place to get some tools. Home Depot has expanded from that narrow band to include other complementary offerings. This includes both expanding its digital channel and highlighting its professional service offerings.
Second, there’s defensive appeal to the stock. Home Depot is positioned well to appeal to both DIYers as well as professionals. A market pullback results in consumers holding off on big-ticket renovations. As a result, those consumers end up settling for a smaller project they can do themselves from home. Again, Home Depot emerges as the winner.
Finally, let’s talk about income and timing. Home Depot currently trading down over 30% year to date. The current price-to-earnings ratio of 17.10 on the stock is also the lowest it’s been in years. That drop has helped swell the yield on Home Depot’s dividend to 2.81%.
In short, Home Depot has plenty of long-term growth, offers a juicy dividend, offers some defensive appeal, and trades at a discount now.
Your portfolio needs a solid earner with a solid history
When it comes to finding some of the safest U.S. stocks right now, selecting a dependable stock with a solid history of weathering volatility is a great start. That also means that Johnson & Johnson (NYSE:JNJ) should be near the top of investor shopping lists.
J&J is a healthcare behemoth. The company operates under three broad segments comprising of Consumer, Pharmaceutical, and MedTech. Collectively, they accounted for a whopping US$24 billion in sales in the most recent quarter.
In terms of earnings, in the most recent quarter, J&J earned US$2.59 per adjusted diluted quarter. This represented a 4.4% increase over the prior period.
Turning to income, J&J is a Dividend King. The company has raised its dividend for 60 consecutive years. The current yield works out to a juicy 2.71%. It’s also worth noting that J&J’s dividend is well covered with a payout ratio sitting south of 60% of cash profits.
No investment is without risk, and that includes this list of the safest U.S. stocks. Fortunately, in the case of the three stocks above, they all offer defensive appeal in their respective fields.
In my opinion, one or all of these stocks would do well as part of a larger, well-diversified portfolio.
Before you consider The Walt Disney Company, you'll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in September 2022 ... and The Walt Disney Company wasn't on the list.
The online investing service they've run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 21 percentage points. And right now, they think there are 5 stocks that are better buys.
See the 5 Stocks * Returns as of 9/14/22