7 Best Boring Stocks to Buy

1. Kellanova (NYSE:K)

Beta: 0.33

5 Year Returns: 25.0%

Number of Hedge Fund Holders: 67

Kellanova (NYSE:K) is a prominent global packaged foods company specializing in snacks, cereals, and frozen foods. It was established in 2023 following the corporate split of the Kellogg Company, which separated its rapidly growing global snacking business from the North American cereal division, now part of WK Kellogg Co.

Kellanova (NYSE:K) is considered a defensive stock within the consumer staples sector, known for its steady revenue, strong brand recognition, and reliable dividend payouts. Despite facing significant competition, the company represents a secular growth story, driven by its portfolio of differentiated and well-known brands. Kellanova’s revenue is projected to grow by approximately 1.5% in 2025 and nearly 3% in 2026. In 2024, the company delivered an impressive 37% return on equity (RoE), generating $1.3 billion in net income and $1.8 billion in operating cash flows. The stock also offers a dividend yield of 2.8%.

In August 2024, Mars Inc., a global leader in pet care, snacking, and food, and the owner of brands like M&M’s and Snickers, announced its agreement to acquire Kellanova (NYSE:K) for approximately $35.9 billion. The acquisition is expected to be completed in the first half of 2025.

While we acknowledge the potential of K to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than K but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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