3 Relatively Safe Stocks to Buy Right Now

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29-03-2025

Investing in stocks comes with risks. There's no way around that fact. However, some stocks can be less risky than others during certain market conditions.
Three Motley Fool contributors think they've found relatively safe stocks to buy right now with major market indexes remaining near correction territory. Here's why they like Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ).
David Jagielski (Abbott Laboratories): If you're looking for safety within the healthcare sector, a top name to consider right now is Abbott Laboratories. It's a good stock to put in your portfolio that you won't have to worry about.
For starters, it offers an above-average dividend yield of 1.9% (the S&P 500 average is 1.4%). Abbott has increased its dividend for 53 consecutive years. Not only can you collect a dependable dividend with this stock, but it's also likely to grow over the years as Abbott's sales and profits rise.
The big reason it makes for a stable and safe investment is because its operations are highly diverse. Last year, Abbott generated $19 billion in sales from medical devices, $9 billion from diagnostics, $8 billion from nutritional sales, and $5 billion from its established pharmaceuticals segment. Collectively, these segments make Abbott a fairly safe investment to hold on to. While its diagnostic sales were down 7% last year, largely due to higher COVID testing demand in the previous year, all of the company's other business units generated positive year-over-year growth, with the end result being an overall company growth rate of just under 5% for the full year.
Shares of Abbott have risen by more than 80% over the past five years and with a modest price-to-earnings multiple of 17, it's still a good value buy. Its modest beta value of 0.69 also tells investors this isn't a highly volatile stock in relation to the markets.
If you want a good, safe healthcare stock to hold, with a great dividend, Abbott can make for a no-brainer buy right now.
Keith Speights (AbbVie): Big pharmaceutical companies don't have exclusivity forever for the drugs they invest heavily in developing. Eventually, those drugs lose patent protection and can experience significant sales declines as new rivals enter the market. But few have faced as scary a patent cliff as AbbVie and handled it so effectively.
When AbbVie spun off from Abbott in 2013, the writing was already on the wall for its autoimmune disease drug Humira losing exclusivity. Not only did Humira rank as AbbVie's top-selling product, generating 65% of the company's total revenue by 2017, but it also ranked as the top-selling drug in the world for several years.
AbbVie felt the pain when Humira began to face biosimilar competition in the U.S. in 2023. However, the company already had two successor products on the market with Skyrizi and Rinvoq. AbbVie now projects these two autoimmune disease drugs will rake in combined sales of $24 billion this year and more than $31 billion by 2027. At its peak, Humira's sales totaled $21.2 billion.
I think investors can sleep peacefully at night owning shares of AbbVie. The company has proven its ability to navigate challenges. Patients will need its medications regardless of what happens with the economy. AbbVie is also a Dividend King with 53 consecutive years of dividend increases and an attractive forward dividend yield of 3.25%.
Prosper Junior Bakiny (Johnson & Johnson): It might seem odd to describe Johnson & Johnson as a "safe" stock right now. The pharmaceutical giant is still dealing with thousands of lawsuits related to its talc-based products, while regulatory changes in the U.S. threaten to eat into its sales growth for some products. However, Johnson & Johnson still boasts a AAA rating -- the highest available -- from Standard & Poor's, which is robust evidence of the strength of its balance sheet.
Meanwhile, the company still generates consistent revenue and earnings. The drugmaker's top line in 2024 increased by 4.3% year over year to $88.8 billion, while its earnings per share grew by 11.3% year over year to $5.79. Johnson & Johnson continues to develop newer medicines that will help it drive strong top-line growth for years and move beyond recent (and future) patent cliffs. One of the company's most exciting recent approvals is Carvykti, a cancer medicine closing in on blockbuster status.
In 2024, Carvykti's sales grew by 92.7% year over year to $963 million. Several older products, such as immunosuppressant Tremfya, continue to contribute, too. Further, Johnson & Johnson has a medtech business whose sales grew slightly faster than those of its pharmaceutical medicine segment last year. Johnson & Johnson could be close to a settlement that would put the overwhelming majority of its talc lawsuits to rest.
The company's deep pipeline within its medtech and pharmaceutical businesses should help it maintain strong results despite recent regulatory changes. Lastly, Johnson & Johnson is a Dividend King with 62 consecutive years of payout increases. Those worried about a recession -- or income-seekers with a long-term mindset -- can safely opt for this reliable blue chip dividend payer.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie. Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool has positions in and recommends AbbVie and Abbott Laboratories. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
3 Relatively Safe Stocks to Buy Right Now was originally published by The Motley Fool