In this article, we discuss the 5 best low-risk investment options to add to your retirement portfolio. You can go through our detailed analysis of the retirement phenomenon within the U.S. at Retirement Stock Portfolio: 10 Low Risk Investments.
5. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 74
Dividend Yield as of 12/10: 2.63%
Beta Value: 0.46
The Procter & Gamble Company (NYSE:PG) is a global consumer goods corporation headquartered in Cincinnati, Ohio. Established in 1837 by William Procter and James Gamble, the company is renowned for its diverse range of branded consumer packaged goods. These goods are distributed globally and cover various segments, including Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care.
Presently, the company offers a quarterly dividend of $0.9407 per share, equating to a dividend yield of 2.63% as of October 12. Notably, The Procter & Gamble Company (NYSE:PG) has consistently increased dividends for an impressive 67 consecutive years, solidifying its standing not only as a leading dividend aristocrat stock, but also as a reputable retirement option.
As per Insider Monkey’s second-quarter database, 74 hedge funds demonstrated a bullish position on The Procter & Gamble Company (NYSE:PG), a slight decrease from the 75 funds in the preceding quarter. Terry Smith’s Fundsmith LLP holds the largest stake in the company, possessing 4.84 million shares valued at $735.8 million.
4. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 78
Dividend Yield as of 12/10: 2.82%
Beta Value: 0.38
Merck & Co., Inc. (NYSE:MRK) is a renowned American multinational pharmaceutical company with its headquarters situated in Rahway, New Jersey. Originally the American arm of the Merck Group, founded in Germany in 1668, it carries the name of its former parent company. Operating as Merck Sharp & Dohme or MSD outside the United States and Canada, the company holds a prominent position in the pharmaceutical industry, specializing in the development of medicines, vaccines, biologic therapies, and animal health products.
Merck & Co., Inc. (NYSE:MRK) announced promising outcomes from a Phase 3 clinical trial of its anti-PD-1 therapy, Keytruda, in collaboration with Seagen Inc. (NASDAQ:SGEN)’s antibody-drug conjugate Padcev, on September 22. The combined therapy exhibited favorable results for patients undergoing treatment for bladder cancer.
Insider Monkey dug through 910 hedge funds for their second quarter of 2023 investments to discover that 78 had invested in Merck & Co., Inc. (NYSE:MRK), up from 75 in the previous quarter. Cliff Asness’ AQR Capital Management is the biggest shareholder, owning a $331.8 million stake.
Carillon Eagle Growth & Income Fund made the following comment about Merck & Co., Inc. (NYSE:MRK) in its Q2 2023 investor letter:
“Merck & Co., Inc. (NYSE:MRK) presented positive clinical data for a new drug in its oncology pipeline, announced an acquisition that was viewed favorably by investors, and reported strong first-quarter financial results while also increasing its earnings guidance for 2023.”
3. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 81
Dividend Yield as of 12/10: 1.44%
Beta Value: 0.54
Walmart Inc. (NYSE:WMT) stands as a prominent American retail giant, boasting an extensive network of hypermarkets, discount department stores, and grocery outlets strategically located throughout the United States. The company is headquartered in Bentonville, Arkansas. With an exceptional track record, this multinational retail corporation has consistently increased its dividends over an impressive 50-year period, presently offering a quarterly dividend of $0.57 per share.
On August 17, Walmart Inc. (NYSE:WMT) released its Q2 non-GAAP EPS, revealing a figure of $1.84, surpassing Wall Street estimates by $0.13. Additionally, the company’s Q2 revenue amounted to $161.63 billion, reflecting a notable 5.9% year-on-year increase and exceeding market expectations by $2.35 billion.
In Q2 2023, Walmart Inc. (NYSE:WMT) garnered significant interest from hedge funds, with 81 hedge funds holding positions in the company, as indicated by Insider Monkey’s database. The collective stakes held by these hedge funds were valued at over $5.46 billion. Notably, investment firm D. E. Shaw emerged as the largest shareholder, boasting stakes worth approximately $861.9 million.
2. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 88
Dividend Yield as of 12/10: 3.05%
Beta Value: 0.57
Johnson & Johnson (NYSE:JNJ), established in 1886, is a well-known American multinational corporation recognized for its pioneering work in medical devices, pharmaceuticals, and consumer packaged goods. Notably, the pharmaceutical arm of the company has an impressive streak of continuous dividend growth, spanning 62 years. Presently, Johnson & Johnson (NYSE:JNJ) distributes a quarterly dividend of $1.19 per share, equating to a dividend yield of 3.05% as of October 12.
During Q2 2023, the number of hedge funds monitored by Insider Monkey that held positions in Johnson & Johnson (NYSE:JNJ) rose to 88, up from 86 in the previous quarter. The combined stakes held by these hedge funds exceed a total value of $4.1 billion. The primary hedge fund investor in Johnson & Johnson (NYSE:JNJ) is Ray Dalio’s Bridgewater Associates, possessing a significant stake valued at approximately $526.58 million.
1. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 111
Dividend Yield as of 12/10: 1.43%
Beta Value: 0.65
UnitedHealth Group Incorporated (NYSE:UNH), headquartered in Minnetonka, Minnesota, is a leading American multinational company specializing in managed healthcare and insurance services, operating as a for-profit entity. The company is organized into four main segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. Recognized as a preferred stock for retirees, UnitedHealth Group Incorporated (NYSE:UNH) announced a quarterly dividend of $1.88 per share on August 23, consistent with the previous payout. Shareholders of record as of September 11 received the dividend, which was distributed on September 19.
Insider Monkey’s database of 910 hedge funds shows that 111 hedge funds reported owning stakes in UnitedHealth Group Incorporated (NYSE:UNH). The most significant stakeholder of the firm during this period was Rajiv Jain’s GQG Partners which owns a $2.4 billion stake in the company.
Mairs & Power Growth Fund made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2023 investor letter:
“Notable detractors to performance in the first half were US Bank (USB), Charles Schwab (SCHW), and UnitedHealth Group Incorporated (NYSE:UNH), which were down 22.09%, 31.65%, and 8.65%, respectively. Another detractor from relative performance was UnitedHealth Group, which was down 8.65%. However, we have a positive long-term view of the company, headquartered in Minnesota, and especially its potential when it comes to harnessing its vast amounts of patient data via AI. Additionally, its Optum unit, which provides technology and data-driven care delivery, has AI-enabled tools that can help healthcare providers drive more efficient and accurate care to patients.
You can also take a look at 12 Best European ETFs to Buy and 12 Best Streaming and TV Stocks To Buy Now.
