In this article, we look at the 12 best low-risk investments for April 2024. To skip analysis of recent market trends and market activities, go directly to Best 5 Low Risk Investments for April 2024.
The stock market in 2024 presents a stark contrast to the situation investors faced at the beginning of the coronavirus pandemic and its immediate aftermath. Global stocks performed strongly before the pandemic, fueling speculation that the United States’ hold as a global economic power was weakening as emerging economies such as China sought to challenge U.S. dominance. More notably, inflation continued to rise in February, maintaining the Fed’s policy of delaying interest rate cuts until at least the summer.
Additionally, a series of worrying developments began on March 11th, with a New York Fed survey in February revealing an acceleration in consumer long-term expectations, and an additional report showing that consumer prices had increased year on year. This showed an increase of 3.2% compared to the previous year. Finally, on March 14, data was released showing increasing pipeline pressure at the wholesale level, further heightening concerns. A report from the U.S. Bureau of Labor Statistics showed the producer price index rose 0.6% in February, double the Dow Jones forecast, adding to inflation concerns.
However, the Federal Reserve has the flexibility to maintain higher interest rates, given that the U.S. economy continues to outperform relative to its global peers. The strategy aims to ease Wall Street’s reliance on easy money, a trend that emerged after the Great Recession of 2008 and the recent coronavirus pandemic. In February 2024, the main Wall Street stock index, which constitutes the top of the U.S. stock market, reached a milestone by exceeding 5,000 points for the first time. This marks a sharp departure from the second half of 2022, when speculation of an impending recession was widespread and investors urged cautious preparations.
That said, serious long-term investors tend to pay less attention to sudden changes like this. Rather than be subject to rapid change and uncertainty, they choose to invest in stocks of reliable companies that are valued and known for consistent performance over long periods of time, often spanning years or even decades. To do. While the lure of investing in completely risk-free stocks may be appealing, the reality is that no stock can guarantee 100% safety. However, certain stocks are significantly safer than others, including stocks like Costco Wholesale Corporation (NASDAQ:COST), Walmart (NYSE:WMT), and Berkshire Hathaway (NYSE:BRK-B). That’s worth noting. Therefore, they become some of the best low-risk investments among these investments.
Close-up view of a computer monitor displaying real-time financial data on the stock market.
our methodology
The process for shortlisting the April 2024 stocks included several criteria. In other words, we looked for stocks with beta values less than 1.0, strong fundamentals, positive analyst ratings, and positive analyst price targets as of March 27th. I then narrowed down my selection by excluding: Companies and stocks below mid-caps lack stable and resilient dividends. The remaining stocks were valued using the Insider Monkey database of elite hedge funds tracked as of Q4 2023. The list contains the top 12 stocks based on hedge fund sentiment, ranked in ascending order by hedge fund shareholders.
The top 10 consensus stocks selected by hedge funds have outperformed the S&P 500 index by more than 140 percentage points over the past 10 years (Please see here for the detail). That’s why we pay close attention to this often ignored metric.
12. General Mills Company (NYSE:GIS)
Number of hedge fund holders: 40 people
Beta value: 0.14
General Mills, Inc. (NYSE:GIS) is a prominent American multinational corporation known for manufacturing and marketing branded consumer packaged foods that are widely distributed through retail channels. The company’s origins date back to Minneapolis, where it was founded on the Mississippi River near St. Anthony Falls. It first became known as an important flour milling operation.
As of the end of the fourth quarter of 2023, Insider Monkey’s database revealed that 40 hedge fund investors had allocated investments to General Mills, Inc. (NYSE:GIS). General Mills, Inc. (NYSE:GIS)’s largest shareholder was John Overdeck and David Siegel’s Two Sigma Advisors, with approximately 3.48 million shares worth approximately $226.99 million.
General Mills Inc. (NYSE:GIS), like Costco Wholesale Corporation (NASDAQ:COST), Walmart Inc. (NYSE:WMT), and Berkshire Hathaway Inc. (NYSE:BRK-B), is one of the lowest priced companies. We will start risk investing in April 2024.
11. Colgate-Palmolive Company (NYSE:CL)
Number of hedge fund holders: 54 people
Beta value: 0.41
Colgate-Palmolive Company (NYSE:CL) is a multinational corporation headquartered on Park Avenue in midtown Manhattan, New York City. The company specializes in manufacturing, distributing, and providing a variety of household, health care, personal care, and veterinary products.
CL has 61 years of continuous dividend growth and stands out as one of the best low-risk investments on the market. The company currently offers him a quarterly dividend of $0.50 per share, giving him a dividend yield of 2.22% as of March 27th.
54 hedge funds tracked by Insider Monkey reported holdings in Colgate-Palmolive Company (NYSE:CL) as of the end of the fourth quarter of 2023, compared to 52 in the previous quarter. It increased from These stakes are worth a total of nearly $3 billion. First Eagle Investment Management owns approximately 11 million shares of CL stock and became the company’s major shareholder in the fourth quarter.
10. Costco Wholesale Corporation (NASDAQ:COST)
Number of hedge fund holders: 57 people
Beta value: 0.77
Costco Wholesale Corporation (NASDAQ:COST) operates a worldwide network of membership-based warehouses primarily under the Costco Wholesale brand, offering quality branded products compared to traditional wholesale and retail stores. We offer them at significantly lower prices.
As of March 27, Costco Wholesale Corporation (NASDAQ:COST) paid a quarterly dividend of $1.02 per share, giving it a dividend yield of 0.56%. Over the past 19 years, the company has demonstrated a consistent commitment to rewarding shareholders by increasing dividends.
Costco Wholesale Corporation (NASDAQ:COST) was in 57 hedge fund portfolios at the end of Q4 2023, compared to 65 in the prior quarter, according to data from Insider Monkey. The combined value of the stocks held by these hedge funds is more than $4 billion.
9. The Coca-Cola Company (NYSE:KO)
Number of hedge fund holders: 62 people
Beta value: 0.59
Widely regarded as one of the best low-risk investments, The Coca-Cola Company (NYSE:KO) is an American multinational company famous for producing the iconic beverage Coca-Cola. Besides its main products, the company actively participates in the production, distribution and promotion of various non-alcoholic beverage concentrates, syrups, especially alcoholic beverages in the beverage industry.
On December 13th, investment advisory firm Citi maintained a “buy” rating on shares of The Coca-Cola Company (NYSE:KO) and raised their price target from $65 to $67.
At the end of the fourth quarter of 2023, 62 hedge funds held shares in Coca-Cola (NYSE:KO).
Hayden Capital commented on The Coca-Cola Company (NYSE:KO) in its third 2023 investor letter:
“Given the scarcity of high-quality listed companies, it is not only emerging markets where a ‘scarcity premium’ may be discussed. Even in America, coca cola company (NYSE:KO) trades at a P/E ratio of around 30x, despite the same earnings as a decade ago.
Both of these companies actually have lower revenues than they did 10 to 15 years ago, indicating that their earnings growth is primarily due to margin expansion. This situation can last for a long time until there is no more extra spending to cut.
I find it ironic that all these companies trade as “bond equivalents” in the minds of investors, giving them even lower yields than the safest securities in the world, US Treasuries. I think so. However, it is clear that their business is not that secure. Coca-Cola faces the risk of disruption as consumers shift to new, healthier beverage brands.
But despite the increased risk, these companies are priced up to 35% higher than U.S. Treasuries. One could argue that on a risk-adjusted basis, the implied premium is even higher. ”
Perhaps the explanation is simply the difference in price movements between these stocks and government bonds over the past two years. For example, 10-year US Treasuries are down about -20% since the beginning of 2022. In comparison, it is notable that KO and PG have only decreased by -4% to 6% over that period. ”
8. PepsiCo (NASDAQ:PEP)
Number of hedge fund holders: 64 people
Beta value: 0.53
PepsiCo, Inc. (NASDAQ:PEP), headquartered in Purchase, Harrison, New York, is a leading American multinational company with operations in the food, snack and beverage industries. Known for its financial resilience, the beverage giant has maintained a consistent dividend growth pattern for over 51 years. The company currently pays a quarterly dividend of $1.27 per share, which equates to a dividend yield of 2.89% as of March 27th.
According to Insider Monkey’s Q4 2023 database, 64 hedge funds reported holding shares in PepsiCo Inc. (NASDAQ:PEP), compared to 65 hedge funds in the previous quarter. The total value of these shares is approximately $4.55 billion.
PepsiCo Inc. (NASDAQ:PEP) is a top low-risk investment, along with Costco Wholesale Corporation (NASDAQ:COST), Walmart Inc. (NYSE:WMT), and Berkshire Hathaway Inc. (NYSE:BRK-B). is. April 2024.
7. CVS Health Corporation (NYSE:CVS)
Number of hedge fund holders: 67 people
Beta value: 0.50
CVS Health Corporation (NYSE:CVS) is a prominent healthcare corporation with an extensive network of retail pharmacies and clinics across the country. Operating under a variety of brands, including CVS Pharmacy (a retail pharmacy chain), CVS Caremark (a pharmacy benefits manager), and Aetna (a health insurance provider), the organization plays an important role in the healthcare industry.
CVS Health Corporation (NYSE:CVS) announced total revenue of $93.8 billion in the fourth quarter alone. This represents a significant increase of 11.9% over the previous year. Net income for the quarter was $2 billion. Furthermore, the company’s operating profit for FY2023 increased by a whopping 72.8%.
As of the end of the fourth quarter of 2023, 67 hedge funds held positions in CVS Health Corporation (NYSE:CVS), according to data from Insider Monkey’s database, which monitors 933 hedge funds. found. Notably, Marshall Weiss LLP led by Paul Marshall and Ian Weiss emerged as a significant investor with a significant stake in the company worth $382.67 million.
6. Procter & Gamble Company (NYSE:PG)
Number of hedge fund holders: 71 people
Beta value: 0.43
Founded in 1837 by William Proctor and James Gamble, Procter & Gamble Company (NYSE:PG) is a global consumer products company headquartered in Cincinnati, Ohio. Known for its wide range of branded consumer packaged goods, the company sells products worldwide across beauty, grooming, health care, fabric & home care, baby, feminine & family care, and other categories. Procter & Gamble Company (NYSE:PG) currently offers a quarterly dividend of $0.94 per share. This equates to a yield of 2.32% as of March 27th.
According to Insider Monkey’s Q4 2023 database, 71 hedge funds in Insider Monkey’s database report holdings in Procter & Gamble Company (NYSE:PG) stock. Last quarter, there were 75 companies. The total value of these stakes is approximately $6 billion. Fisher Asset Management was the company’s largest shareholder in the fourth quarter with an ownership of over 10.5 million shares.
Procter & Gamble Company (NYSE:PG) joins Costco Wholesale Corporation (NASDAQ:COST), Walmart Inc. (NYSE:WMT), and Berkshire Hathaway Inc. (NYSE:BRK-B) has become one of the best low-cost companies. -Risk investment in April 2024.
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Disclosure. none. Best 12 Low Risk Investments for April 2024 Originally published on Insider Monkey.
