A conservative stock should have a business that will grow and isn’t going anywhere, a good dividend and at least a 10 billion market cap. The first stock we are looking at has all of these things and more, the first stock is Waste Management or ticker symbol WM. The company is a Waste disposing company, this is obviously a market that is going nowhere. The stock has a dividend of 2.18 and a yield of 2.39%. The share price has fallen from a 52 week high of 126.79 to a 52 week low of 85.34 and is currently at a price of around 88.50.
The payout ratio is only 52%, this is a very healthy dividend. The growth is also in this stock as it has been growing revenue consistently. The stock has been growing its dividend 16 years in a row. If they continue to grow the dividend then if you were to buy today then a 3% yield on cost will be achievable in a few years. The main reason why I chose this stock is because of their industry but as you can see the stock has a lot to offer.
The second stock is Clorox, ticker symbol CLX. The Clorox Company is very conservative because of their product line. They make Clorox wipes, bleach and many more cleaning products that are similar. This is conservative because the product are basically necessities. The stock has a market cap of 22 billion. The stock has a dividend of 4.24 and a yield of 2.36%. The payout ratio is 63% which is on the higher end, but still safe.
This stock has not been falling like the rest of the market during the sickness. This is because they are a cleaning company and many people are stocking up on cleaning products. The 52 week high is 214.26 and the 52 week low is 144.12, the stock price is currently at 177.54. I haven’t chosen this stock to buy heavy right now, rather to buy when the stock dips in the future. The stock is consumer defensive, which is the most conservative industry. These consumer defensive companies products are needed.
The third stock is Colgate-Palmolive Company. Colgate makes tooth paste and other mouth cleaning products. This stock is another consumer defensive company. The market cap 58 billion, this is the largest market cap out of all three conservative stocks. The dividend is 1.76 and the dividend yield 2.60%. The payout ratio is 62%, this is similar to Clorox’s and is higher but safe.
The stock, similar to clorox, has not fallen much. This is because the company sells needed products. For example, two products that are staples are the companies toothpaste and toothbrush. Obviously we all need to brush our teeth during consistently. The stock has a 52 week high 77.41 and a 52 week low 58.49. Colgate is currently at a price of 67.62, so its not really on discount, but the price isn’t soaring either.
These companies all have defensive sectors and good dividends, which is why they made the list. These stocks will boost your portfolio in rough times, while also paying nice dividends. These defensive/conservative stocks should be held by any investor.