“Boring” stocks, as the name suggests, are not the stocks that grab headlines like fast-growing tech stocks or high-risk investments. Instead, they belong to companies that operate in stable industries, selling everyday products and services that people and businesses need no matter what. These companies don’t rely on constant innovation or disruption to grow. Instead, they focus on steady operations, generating good cash flows and providing consistent returns over time. They may not be exciting, but they can be great investments for long-term stability.
How Do We Define a Boring Stock
There is no set definition of a boring stock because investors look at them in different ways. Some may see them as companies in dull industries, others may focus on their slow but steady growth, and some may define them by their low volatility. However, boring stocks usually have a few things in common. First, they provide products or services that people will always need, meaning their business is not easily disrupted. Second, they tend to have lower stock price swings, which makes them more stable compared to high-growth stocks. Third, they generate strong cash flows and often pay dividends, making them attractive to investors looking for steady income. Finally, while they may not go up in value quickly, they have a history of delivering solid returns over long periods.
Why to Look at Boring Stocks Now
In a March 18 interview on CNBC, John Mowrey, CIO and Senior Portfolio Manager at NFJ Investment Group, shared his insights on the current market conditions. He noted that while the market appears oversold in the short term, further volatility is likely due to tight financial conditions, ongoing tariff discussions, and high valuations in large-cap growth stocks. He highlighted that current valuations are comparable to levels seen before significant market drawdowns in 2018 and 2022, urging investors to remain cautious.
With that insight, stock selection becomes of utmost importance. High-growth stocks can provide big returns, but they also come with higher risks and price swings. In times of economic uncertainty, like the one we are in now, investors often look for safer options, and boring stocks become more appealing. A good example of this mindset was shared by Neil Hennessy, Chief Market Strategist and Portfolio Manager at Hennessy Funds, in an interview with CNBC around two years ago. While discussing issues in the banking sector, he pointed out that the problems might not be as bad as they seemed. Instead of chasing risky investments, he suggested focusing on strong, reliable businesses—what he called “boring” stocks, like coin-operated laundromats. His point was that companies with steady business models tend to perform well over time, even when the economy is uncertain.
It may not be easy to find boring stocks since they don’t get as much attention as glamorous growth stocks. However, they can play an important role in a well-balanced portfolio. While they won’t deliver large returns such as those from large cap tech stocks, they offer stability, steady dividends, and reliable long-term growth. With market volatility increasing, more investors are turning to these stocks as a safe and consistent way to build wealth over time.
With that, let’s take a look at our selection of 7 Best Boring Stocks to Buy.
A businessman checking a graph, indicating the steady growth of his specialty finance company.
Our Methodology
For this list of 7 best boring stocks, we started with U.S. listed stocks primarily from defensive sectors with $2 billion or more in market capitalization. While our focus was on defensive sectors, we also explored other industries to identify companies that fit the “boring” profile. Next, we shortlisted stocks with a beta of less than 1.0, to include only stocks with lower volatility. Additionally, these stocks should have delivered an overall positive return over the last 5 years, with at least 3 of those 5 years showing positive returns. We further narrowed the list by selecting companies with a return on equity (RoE) above 10% and a positive dividend yield. Finally, we ranked the companies in ascending order based on the number of hedge funds holding stakes in the respective company, with the company attracting the most hedge fund interest securing the top spot.
Note: All pricing data is as of market close on March 18. Five-year returns data is as of December 2024 and doesn’t include 2025 returns.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
7 Best Boring Stocks to Buy
7. HNI Corp. (NYSE:HNI)
Beta: 0.90
5 Year Returns: 34.2%
Number of Hedge Fund Holders: 12
HNI Corp. (NYSE:HNI) specializes in manufacturing office furniture and hearth products. Its portfolio includes well-known brands such as HON, Allsteel, and Kimball, offering a wide variety of products for both commercial and residential markets.
The company operates in the office furniture and residential building products industries, both of which experience minimal innovation or disruptions. This results in a relatively stable but slower-paced business. HNI Corp. (NYSE:HNI) benefits from trends like hybrid work and home improvement and leverages its strong distribution network to drive growth. The company is projected to achieve a steady revenue growth rate of 3%-4% this year and in 2026. It also boasts of a return on equity (RoE) of approximately 17% and a dividend yield exceeding 3%, making it an appealing option for income-focused investors.
Currently, HNI Corp. (NYSE:HNI) is covered by only one analyst (according to CNN data), which aligns with its perception as a less exciting investment opportunity. However, the analyst covering it projects a potential upside of 43% from its current price. Over the past five years, the stock has delivered a total return of about 34%, including impressive returns of 47% in 2023 and 20% in 2024.
6. AptarGroup Inc. (NYSE:ATR)
Beta: 0.56
5 Year Returns: 35.9%
Number of Hedge Fund Holders: 29
AptarGroup Inc. (NYSE:ATR) specializes in designing and manufacturing dispensing, sealing, and packaging solutions for both consumer and healthcare markets. The company offers innovative packaging products for various industries, including personal care, food and beverage, pharmaceutical, and beauty sectors.
The packaging industry is typically considered stable rather than high-growth or speculative, with minimal disruptions. While there have been innovations like sustainable packaging, AptarGroup Inc. (NYSE:ATR)’s business remains steady, with demand largely driven by trends in consumer goods and healthcare. The company’s strong commitment to sustainability, such as recyclable and reusable packaging, is expected to support its long-term growth. Although its dividend yield is modest at around 1%, the company generated a solid $374 million in net income and $317 million in free cash flows over the past 12 months.
The company’s long-term prospects were recently affirmed by a Wells Fargo analyst. On February 10, the analyst lowered the price target for AptarGroup Inc. (NYSE:ATR) from $180 to $170 but maintained an Overweight rating. The analyst explained that the company’s shares dropped significantly on February 7 (down 8.5%) due to concerns over tax issues, foreign exchange (FX) impacts on 2025 EPS, and slower growth in the Pharma segment for the quarter. Despite these concerns, the analyst expressed confidence in AptarGroup’s strong overall performance and unchanged long-term outlook.
5. Graphic Packaging Holding Company (NYSE:GPK)
Beta: 0.81
5 Year Returns: 63.1%
Number of Hedge Fund Holders: 31
Graphic Packaging Holding Company (NYSE:GPK) is a provider of sustainable, paper-based packaging solutions for food, beverage, and consumer products. The company specializes in renewable or recyclable carton packaging, paperboard containers, and innovative packaging options, catering to some of the world’s leading brands.
Graphic Packaging Holding Company (NYSE:GPK), as its name suggests, operates in the packaging industry, similar to AptarGroup, but focuses on paperboard and carton-based solutions primarily for major food and beverage companies. The company boasts of an impressive RoE of approximately 23% and a dividend yield of around 1.5%. It estimates a total addressable market opportunity of $15 billion across its packaging segments.
According to its Investor Presentation from February-March 2025, the company anticipates its capital expenditure (capex) cycle to peak in 2024, with capex expected to decline starting in 2025. This reduction should support stronger cash flow generation, with the company projecting approximately $1 billion in annual operating cash flow by 2029, up from the current figure of $850 million. Although a slight decline in sales is expected in 2025, the company forecasts around 3% growth in 2026. Its scale, operational efficiency, and extensive network are likely to support its strong market position.
It is worthwhile to mention here that over the last five years, the company’s shares have appreciated by about 63%, with positive returns recorded in each of those years, an impressive performance.
4. Ingredion Inc. (NYSE:INGR)
Beta: 0.75
5 Year Returns: 48.0%
Number of Hedge Fund Holders: 36
Ingredion Inc. (NYSE:INGR) is a global provider of ingredient solutions, specializing in starches, sweeteners, and plant-based proteins for various applications across the food, beverage, and industrial sectors. The company supports industries such as food processing, pharmaceuticals, and personal care by offering ingredients that enhance texture, taste, and nutritional value.
Ingredion Inc. (NYSE:INGR)’s business involves transforming grains, fruits, vegetables, and other plant-based materials into value-added ingredient solutions for markets including food, beverage, animal nutrition, brewing, and industrial applications. While the company operates in a sizable market, growth in this space is relatively modest and largely influenced by shifting consumer preferences, tastes and dietary trends. Between 2021 and 2024, the company achieved a compounded annual growth rate (CAGR) of over 3% in sales, with now a similar growth rate anticipated for 2025. Notably, the company generated an impressive $1.44 billion in operating cash flows in 2024.
In early February, an Oppenheimer analyst reduced his price target for the stock from $178 to $167 while reiterating an Outperform rating. After reporting a strong Q4 result, the stock has seen some pressure because of a slightly lower-than-expected 2025 outlook. However, the analyst remained positive as he noted that expectations were high before the Q4 report. As per him, while the results met those expectations, the broad range of possible outcomes for 2025 dampened investor enthusiasm.
3. Republic Services Inc. (NYSE:RSG)
Beta: 0.73
5 Year Returns: 124.5%
Number of Hedge Fund Holders: 51
Republic Services Inc. (NYSE:RSG) is one of the largest waste management and recycling companies in the United States. It provides collection, transfer, disposal, and recycling services to residential, commercial, and industrial customers.
The company witnesses stable demand for its services and has been investing in sustainability initiatives, including landfill gas-to-energy projects and fleet electrification. Its extensive network of landfills and recycling facilities ensures strong recurring revenue and long-term growth potential. With support from its stable business, the company generates substantial cash flows. It posted net income of $2 billion and operating cash flow of nearly $4 billion in the past 12 months.
On March 4, a CIBC analyst raised its rating for Republic Services Inc. (NYSE:RSG) from Neutral to Outperformer and increased the price target from $237 to $264. This upgrade was part of a quarterly review of the North American solid waste sector by CIBC. The analyst was encouraged by the solid guidance for 2025 given by the companies in the sector. According to the analyst, this outlook is seen as highly defensive.
2. Texas Instruments Inc. (NASDAQ:TXN)
Beta: 0.98
5 Year Returns: 46.2%
Number of Hedge Fund Holders: 66
Texas Instruments Inc. (NASDAQ:TXN) is a semiconductor company focused on analog and embedded processing chips, which are critical components in industrial automation, automotive electronics, and personal electronics.
Unlike other semiconductor companies that are involved in cutting-edge technologies like AI and high-performance computing, Texas Instruments Inc. (NASDAQ:TXN) is one of the few in the space considered “boring” due to its focus on analog and embedded chips. The company’s stock has not experienced a major rally in recent years, with its highest annual return in the past four years being 15%. However, it has managed to deliver positive returns in four of the last five years. Investors appreciate its disciplined capital allocation strategy, which includes steady dividend growth and consistent share repurchases, making it a popular choice for long-term investment.
The market consensus on Texas Instruments Inc. (NASDAQ:TXN) remains cautious, with a 1-year median price target of $200, indicating an 11% upside potential. However, in early February, Benchmark analyst Cody Acree reiterated a Buy rating on the stock with a price target of $230. Around the same time, Evercore ISI analyst Mark Lipacis also maintained a Buy rating and set a price target of $284, which is the highest among analysts.
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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