“Are there any safe stocks?” This is a popular question, particularly from new investors. Cruel reality answers, “No.” By definition, if there ever was such an entity, it is now extinct.

ALSO READ: Alibaba’s IPOpen Sesame: Throwback Thursday

However, some stocks are certainly safer than others. All stock market investing basics will advise you that equity investments (common and preferred stocks) offer no guarantees of anything. Even dividend stock investing data sources will advise that the past history of dividends paid to shareholders offers no assurances that dividends will be paid in the future.

A stock trading course might note that there are perceived “safe stocks,” so named because they have long histories of continued growth, profits, and dividend payments. Throughout the twentieth century, stocks like IBM, CocaCola, Procter & Gamble, and Microsoft, to name a few, have consistently grown in value, enjoyed two-for one (or more) “splits,” and have earned the term safe stocks.

Use this rule of thumb when looking for safe stocks. Examine those stocks with a consistent history of growth and profits, paying closest attention to their return on equity (ROE), to find the safe stocks, be they large or small cap. Analyze how they are reacting to current
economic conditions to become comfortable that they should continue their performance.

To find out more, head over to Wall Street Survivor.

Important Reminder!

The Motley Fool Stock Advisor ranks as our #1 Best Investment Newsletter for the third year in a row.

Their stock recommendations continue to beat all of the other newsletters and they maintain a very high accuracy of their picks. Their 24 stock picks from 2018 have outperformed the market by an average of 44% as of July 7, 2019. Read that again. I didn’t say their stock picks are up an average of 44%, I said they have BEAT THE MARKET by 44%.

No other newsletter comes close to that. You may have seen the Motley Fool’ advertisements that their picks are up 367% compared to the market’s 80%. Is The Motley Fool’s Stock Advisor really as good as they claim?

Our results, at least since January 2016, suggest YES. You can now get their latest stock picks for ONLY $19/month or $99/year. But this is a special limited time offer. It expires tonight at midnight.

Get the Motley Fool's Latest picks

P.s. this offer is still backed by their 30-day guarantee