In this article, we discuss the 5 safe stocks to buy for beginner investors. If you want to read our comprehensive analysis of these stocks and the current market situation, go directly to 12 Safe Stocks To Buy For Beginner Investors.
5. The Coca-Cola Company (NYSE:KO)
Number Of Hedge Fund Holders: 70
Another dividend king on our list, The Coca-Cola Company (NYSE:KO) is a global beverage giant that has interests in the manufacturing, retailing, and marketing of non-alcoholic beverage concentrates and syrups, and alcoholic beverages. With over 60 years of consecutive dividend growth, the company declared a quarterly dividend of $0.44 per share on February 17, a 4.8% increase from its prior dividend of $0.42.
For the fiscal first quarter of 2022, The Coca-Cola Company (NYSE:KO) announced that its quarterly revenues came in at $10.50 billion, up 16.44% on a year-over-year basis, and outperformed the market by more than $670.79 million. The company also reported an EPS of $0.64, beating expert estimates by $0.06.
A top dividend stock among investors and one of the best for beginner investors, around 70 hedge funds were long The Coca-Cola Company (NYSE:KO) at the end of Q4 2021. The total stakes of these funds were estimated to be $28.61 billion, up from $25.13 billion in the third quarter of 2021 with 61 positions. Among these hedge funds being tracked by Insider Monkey, Warren Buffett’s Berkshire Hathaway is a leading shareholder of the company, owning 400 million shares worth $23.6 billion.
ClearBridge Investments mentioned The Coca-Cola Company (NYSE:KO) in its “Dividend Strategy” fourth-quarter 2021 investor letter. Here is what the firm said:
“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (Coca-Cola). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”
4. Johnson & Johnson (NYSE:JNJ)
Number Of Hedge Fund Holders: 83
Johnson & Johnson (NYSE:JNJ) is a global healthcare company that investigates, develops, produces, and distributes a variety of medical devices, pharmaceuticals, and consumer packaged goods. The company recently announced a 6.6% increase in the quarterly dividend, from $1.06 per share to $1.13 per share.
Johnson & Johnson (NYSE:JNJ) released its earnings report for the fiscal first quarter of 2022 on April 19, with a reported EPS at $2.67, surpassing market estimates by $0.10. Additionally, the company reported a revenue of $23.43 billion.
Earlier on April 20, Credit Suisse analyst Matt Miksic raised his price target on Johnson & Johnson (NYSE:JNJ) to $205 from $200 and kept an Outperform rating on the shares of the company. The analyst notes that Johnson & Johnson’s (NYSE:JNJ) Q1 results led off Med Supplies and Devices earnings with better-than-expected growth across nearly every one of its MedTech businesses.
Johnson & Johnson (NYSE:JNJ) is one of the top safe stocks that beginner investors could add to their portfolios. At the end of the fourth quarter of 2021, 83 hedge funds in the database of Insider Monkey held stakes worth $7.3 billion in Johnson & Johnson (NYSE:JNJ), compared to 88 in the previous quarter worth $6.8 billion. Of these 83 funds, Fundsmith LLP held 7.21 million shares worth $1.23 billion in Johnson & Johnson (NYSE: JNJ), making it the largest shareholder of the firm.
3. General Motors Company (NYSE:GM)
Number Of Hedge Fund Holders: 90
General Motors Company (NYSE:GM) is one of the largest multinational automotive manufacturing corporations in the world. Shares of the company turned green in the after-hours trading session on April 26 following its optimistic profit for the first quarter. The Michigan-based automaker reported an EPS of $2.09 on an adjusted basis, crushing expectations of $1.68 per share.
On April 27, Citi analyst Itay Michaeli raised the price target on General Motors Company (NYSE:GM) to $98 from $95 and maintained a Buy rating on the shares. According to the analyst, General Motors Company (NYSE:GM) delivered a strong Q1, a “confidently confirmed” 2022 outlook and “encouraging” electric vehicle updates.
General Motors Company (NYSE:GM) is a favorite among elite hedge funds, making it a safe choice for anyone starting their investment journey. Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is one of the biggest shareholders in General Motors Company (NYSE:GM) with 33 million shares worth more than $1.9 billion. Overall, 90 hedge funds were bullish on the stock by the end of December 2021.
Here is what Oakmark Global Fund has to say about General Motors Company (NYSE:GM) in its Q1 2022 investor letter:
“General Motors (NYSE:GM) was a detractor during the quarter, due to increased macro uncertainty, higher fuel prices, and concerns over rising input costs, which pressured the company in particular and the auto industry as a whole. While we are closely monitoring the potential impact of these dynamics, industry demand remains robust, driven by strong consumer balance sheets and pent-up demand after multiple years of constrained production. We also remain confident in GM’s ability to navigate a complex operating environment, which the company has consistently demonstrated over the past few years. Finally, the long-term picture remains bright. We believe GM is significantly undervalued, is well-positioned for the long-term transition to electric vehicles and has numerous needle-moving ancillary business opportunities (most notably Cruise, which is an industry leader in autonomous vehicle technology) that are underappreciated.”
2. Apple Inc. (NASDAQ:AAPL)
Number Of Hedge Fund Holders: 134
A multinational technology company that specializes in consumer electronics, software, and online services, Apple Inc. (NASDAQ:AAPL) is a pandemic winner as demand for its iPhones, MacBooks, and services surged, while the popularity of its iPhone 13 series helped grow its market share last year.
Earlier on January 27, Apple Inc. (NASDAQ:AAPL) released its earnings report for the fiscal first quarter of 2022 in which it reported earnings per share of $2.10, beating market estimates by $0.21. The tech giant also generated quarterly revenues that amounted to $123.95 billion, an increase of 11.22% on a year-over-year basis, surpassing the market consensus by $5.41 billion.
Canaccord analyst T. Michael Walkley reiterated his Buy rating and $200 price target on Apple Inc. (NASDAQ:AAPL) shares. The analyst expects the company to report solid Q2 results with potential upside driven by strong iPhone 13 and Mac sales, making the share price more compelling for longer-term investors.
One of the most notable stock picks among long-term and beginner investors, Apple Inc. (NASDAQ:AAPL) was found in the public stock portfolios of around 134 hedge funds, compared to 120 funds in the previous quarter. Of these, Warren Buffett’s Berkshire Hathaway held the largest stake in the company, with a position worth $157.5 billion.
ClearBridge Investments, an investment management firm, mentioned Apple Inc. (NASDAQ:AAPL) in its fourth-quarter 2021 investor letter. Here is what the firm said:
“Despite these mixed emerging growth results, the ClearBridge Global Growth Strategy outperformed the benchmark due to resilience among our secular and structural growth holdings. The bulk of these contributions came from U.S. mega-cap growth stocks Apple and Microsoft which continued to uniquely act both offensively and defensively as they have through most of the pandemic.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number Of Hedge Fund Holders: 262
Multinational software company Microsoft Corporation (NASDAQ:MSFT) leads our list of safe stocks beginner investors should pay attention to.
Microsoft Corporation (NASDAQ:MSFT) is up 5.90% after the Washington-based tech giant reported better-than-expected results for Q3 2022 and provided strong guidance for the rest of the year. The software company reported revenue and adjusted earnings per share of $49.36 billion and $2.22, respectively, while surpassing market estimates of $49.05 billion and $2.19.
The investor sentiment for the stock has largely been positive, making Microsoft Corporation (NASDAQ:MSFT) a notable choice for both veteran and aspiring investors. According to Insider Monkey’s database, 262 funds owned stakes in Microsoft Corporation (NASDAQ:MSFT) at the end of the fourth quarter of 2021, amounting to $75.66 billion. This is compared to 250 funds in the preceding quarter that held stakes worth $65.87 billion.
Citi analyst Tyler Radke raised the price target on Microsoft Corporation (NASDAQ:MSFT) to $364 from $355 and kept a Buy rating on the shares of the company. According to the analyst, Microsoft Corporation (NASDAQ:MSFT) delivered a resounding Q3 with a clean beat across key revenue categories, margins and provided a reassuring outlook to investors.
Motiwala Capital mentioned Microsoft Corporation (NASDAQ:MSFT) in its fourth-quarter 2021 investor letter, here is what the firm had to say:
“Microsoft (NASDAQ:MSFT) re-enters our portfolio after a long gap. MSFT sells enterprise and consumer software products as well as hardware products such as the Xbox video game console and Surface laptops. All business segments experienced double-digit revenue growth and earnings per share have compounded in the mid-double digits over the last 5 years. We believe MSFT continues this momentum in the years ahead.”
You can also take a look at 15 Best Technology Stocks To Buy Now and Top 10 Undervalued Tech Stocks.
