In this article, we discuss the 10 best widow and orphan stocks to invest in.
Investing in the stock market can be a prudent strategy for widows and orphans seeking financial stability and growth. Widow-and-orphan stocks are typically associated with established companies in sectors like utilities and consumer staples. These companies often provide consistent dividend payments, offering a reliable income stream. This stability is particularly valuable during economic downturns, as these stocks tend to exhibit lower volatility compared to high-growth equities. Investing in stable, dividend-paying stocks can aid in preserving and growing wealth over time. The combination of regular dividend income and potential capital appreciation makes these stocks suitable for individuals aiming for sustainable financial growth without excessive risk exposure.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
A study published in July 2024 highlights the critical role of financial literacy in investment decisions and stock market participation. The research indicates that increased financial knowledge enhances investment confidence and decision-making, underscoring the importance of targeted financial education programs to empower individuals to participate effectively in the stock market. Recent trends show that women, particularly baby boomers, are increasingly controlling significant amounts of wealth. As of January 2025, women over 60 control $8 trillion of liquid wealth assets. This shift underscores the importance of financial literacy and proactive investment strategies among women to ensure long-term financial security.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we made a list of large and mega-cap stocks with impressive dividend profiles. From this dataset, we chose companies with strong fundamentals that have shown resilience during rough macroeconomic conditions in the past. These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Best Widow and Orphan Stocks To Invest In
10. Target Corporation (NYSE:TGT)
Number of Hedge Fund Holders: 49
Target Corporation (NYSE:TGT) operates as a general merchandise retailer in the United States. The company reported third-quarter adjusted earnings per share (EPS) of $1.85, compared with $2.10 in the previous year. In January, the board of directors of Target Corporation declared a quarterly dividend of $1.12 per common share. In the same month, the company announced that it is doubling down on its commitment to wellness, with plans to introduce more than 2,000 new items across multiple categories, including more than 600 Target exclusives. The company is also bringing newness to its men’s wellness assortment, including Dr. Squatch body care, new products from Dwayne Johnson’s Papatui men’s care line and a new men’s fragrance from vegan brand Fin’ery.
9. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 57
Verizon Communications Inc. (NYSE:VZ) is an integrated telecommunications services firm. In the report of the fiscal year 2024, the company’s total operating revenue was $134.8 billion, up 0.6% compared to the previous fiscal year. In January, the company secured a $66 million Enterprise Infrastructure Solutions contract with the US Coast Guard. Verizon will help the Coast Guard phase out outdated TDM services and implement solutions such as a cellular-based POTS replacement for essential voice communications. It will also provide Contact Center-as-a-Service and deliver secure Impact Level 4 software-based solutions for Coast Guard call centers.
8. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 58
PepsiCo, Inc. (NASDAQ:PEP) manufactures, markets, distributes, and sells various beverages and convenient foods worldwide. In the fourth quarter of 2024, the company reported a 38% increase in operating profit, primarily reflecting net revenue growth and productivity savings. In February, the company announced plans to celebrate the local eateries and flavors that make New Orleans famous as the city prepares for football’s biggest game. Fans can enjoy the Big Easy’s best-loved dishes throughout the weekend, with experiences showing how Pepsi pairs perfectly with the city’s favorite foods.
7. Lowe’s Companies, Inc. (NYSE:LOW)
Number of Hedge Fund Holders: 60
Lowe’s Companies, Inc. (NYSE:LOW) operates as a home improvement retailer. As per the third quarter report of 2024, total sales for the quarter were $20.2 billion, compared to $20.5 billion in the prior year quarter. In January, the company announced that it is accepting project nominations for Lowe’s Hometowns, a five-year initiative with a $100 million commitment to community revitalization. This year, the company will award $10 million in grants for 100 renovations and complete 1,700 additional projects chosen by its associates. In the same year, the company announced that it is donating $2 million to aid relief and recovery efforts for the wildfires in Southern California, reinforcing the company’s commitment to supporting communities before, during, and after disasters.
6. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 63
Chevron Corporation (NYSE:CVX) is an integrated energy company. As per the fourth quarter of 2024 result, the company reported earnings of $3.2 billion ($1.84 per share – diluted) compared with $2.3 billion ($1.22 per share – diluted) in the fourth quarter of the previous year. In January, the company announced that its 50% owned affiliate, Tengizchevroil, has started oil production at its Future Growth Project (FGP) located at the Tengiz oil field in Kazakhstan. FGP is the third processing plant in operation at the Tengiz oil field, which expands sour gas injection capability and is expected to ramp up output to one million barrels of oil equivalent per day.
5. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 68
The Procter & Gamble Company (NYSE:PG) provides branded consumer packaged goods. For the fiscal year 2024, net sales reached $84 billion, marking a 2% increase from the previous year. The firm is investing heavily in Super Bowl advertising, featuring multiple brand spots to boost visibility and consumer engagement. The company recently reaffirmed fiscal full year 2025 EPS of $6.91 to $7.05 versus $6.94 consensus estimates. Full-year revenue is expected to grow 2% to 4% to $85.72 billion to $87.40 billion versus $85.01 billion consensus estimates.
4. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 69
The Coca-Cola Company (NYSE:KO) is a beverage company. In the third quarter of 2024, the company witnessed organic revenues grow by 9% despite a 1% decline in net revenues. In February, Coca-Cola Nigeria and its authorized bottler, Nigerian Bottling Company, inaugurated a new domestic packaging collection hub in Apapa, Lagos. The facility is set to bolster Nigeria’s plastics recycling infrastructure with the capacity to process up to 13,000 tonnes of plastic bottles annually.
3. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 69
NextEra Energy, Inc. (NYSE:NEE) transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company reported a GAAP net income of $1.203 billion ($0.58 per share) for the fourth quarter of 2024, from $1.210 billion ($0.59 per share) in the same quarter of the prior year. In January, the company reaffirmed its long-term financial expectations, guiding adjusted earnings per share to range from $3.45 to $3.70 in 2025, $3.63 to $4.00 in 2026, and $3.85 to $4.32 in 2027. NextEra also confirmed its funding plan for 2024-2027 remains unchanged, with $5 billion to $7 billion in equity units and $5 billion to $6 billion from asset recycling.
2. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 86
Exxon Mobil Corporation (NYSE:XOM) operates as an integrated oil and gas company. In the fourth quarter of fiscal year 2024, capital and exploration expenditures, along with cash capital expenditures, totaled $7.5 billion. For the full year, expenditures reached $27.6 billion and $25.6 billion, respectively, aligning with the company’s guidance. In February, Fortune reported that Exxon Mobil sees a major opportunity in supplying power to AI data centers, as tech companies compete to secure the massive energy needed to power this growing technology.
1. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 88
Walmart Inc. (NYSE:WMT) engages in the operation of retail, wholesale, and other units worldwide. For the third quarter of 2024, consolidated operating income grew by $0.5 billion, or 8.2%, and increased by 9.8% on a constant currency basis, driven by higher gross margins and growth in membership income. In February, media reports outlined that Walmart had bought Monroeville Mall, which is roughly 12 miles east of Pittsburgh, for $34 million. In the same month, the company revealed that it was offering a Game Day meal package that feeds eight people for about $8 per person. The spread includes 13 popular snack items, such as wings, chips, dips, and soda, catering to both casual viewers and die-hard sports fans.
While we acknowledge the potential of Walmart Inc. (NYSE:WMT) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than Walmart Inc. (NYSE:WMT) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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