Boring Can Be Beautiful: 3 Snoozy but Solid Stocks to Buy Now
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If you are a long-term investor like me, you will always be on the lookout for stocks that look promising and can generate passive income for you. While you may not be solely focused on dividend stocks, it doesn’t hurt to look for stocks that generate a steady income. I’ve identified three boring, but solid, stocks to buy which are ideal for long-term investors who do not want to take risks.
These companies are some of the best in the industry, known for their global presence, stable fundamentals and ability to generate passive income. Rebalance your portfolio with these three stocks and take home steady gains. They are low-risk, steady-income generators and highly reliable stocks to bet on. With that in mind, let’s take a look at these boring but beautiful stocks to buy.
Coca-Cola (KO)
Source: Jonathan Weiss / Shutterstock
Beverage giant Coca-Cola (NYSE:KO) may seem like a boring stock to many, but it is an ideal low-risk, steady return stock. The company has a global presence with an umbrella of over 200 brands.
It has nailed a business structure where the operating costs remain low while the revenue steadily grows. KO stock doesn’t easily gather attention but it is one of the most dependable stocks. Up 7% year-to-date, the stock is exchanging hands for $64.
With a heavily diversified business, Coca-Cola ensures that the sales do not heavily depend on a single brand or item. The profitable business enjoys strong free cash flow which allows the management to reward shareholders regularly. The dividend aristocrat has increased dividends for 52 consecutive years.
The company has enjoyed pricing power in the past and despite higher prices, it saw an 11% organic revenue growth in the first quarter. It aims to see organic revenue growth of 8% to 9% for the full year. However, investors should keep in mind that the stock isn’t a fast-mover.
Over time, this boring stock will reward you with steady capital growth and dividend income. It is never too late to own Coca-Cola stock.
Walmart (WMT)
Source: Jonathan Weiss / Shutterstock.com
Having outperformed the S&P 500 in the first six months of 2024, Walmart (NYSE:WMT) may look like a sleepy stock but it is so much more than that. Consumers looking for affordable goods often head to the nearest Walmart and the company has managed to report stellar financials despite high inflation.
WMT stock is exchanging hands for $69 and is up 31% YTD. The stock is at its 52-week high but I think it could keep the upward momentum. Its first-quarter results have shown that the company is in the right place at the right time. It saw a 6% YOY jump in revenue and the EPS jumped 22.4% YOY.
The management has been investing in the e-commerce business to remain relevant to the changing consumer preferences and this investment has also paid off. Walmart reported a 21% YOY jump in global e-commerce sales.
The company also pays a dividend of 1.19% and has announced a 9% dividend hike earlier in the year. Walmart is investing in automation at its fulfillment centers and stores. This is aimed at improving user experience while reducing operating costs. It might lead to higher capital expenditure but is a one-time expense and will help offset the labor costs in the long term. Walmart’s Q2 earnings will be interesting to watch.
Visa (V)
Source: Kikinunchi / Shutterstock.com
Benefiting from the global shift towards digital payments, Visa (NYSE:V) is one stock that doesn’t get the limelight too often, but is worth holding onto for big gains. The company has a business model where it makes money every time a user swipes the Visa card to make a purchase.
This allows Visa to keep the operating costs at a minimum and with 4 billion cards issued globally, the company has seen steady revenue growth. In the second quarter, it saw a 10% revenue jump and a 20% EPS jump. The company saw a growth in payment volume and cross-border transactions that contributed to the overall revenue growth.
Investors may consider Visa boring since there is no eye-catching upside. However, I believe Visa is a highly reliable stock with a strong position in the market. It has a chance to make the most of the transition from cash to digital payments, especially in the growing markets. The company has seen consistent profit growth and it owns a business model that will keep thriving, no matter how the market moves from here.
If there is a rate cut in the coming months, we could see an improvement in consumer spending, and the payment volume could improve. Visa may be a sleepy stock but it is worth holding on to for years to come. It also enjoys a dividend yield of 0.77%.
On the date of publication, Vandita Jadeja did not hold (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.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.
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