We recently published a list of 7 Best Boring Stocks to Buy. In this article, we are going to take a look at where Graphic Packaging Holding Company (NYSE:GPK) stands against other best boring stocks to buy.
“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.
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).
Workers in protective gear carrying packages of coated unbleached kraft for shipping.
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.
Overall, GPK ranks 5th on our list of best boring stocks to buy. While we acknowledge the potential of GPK 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 GPK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
