The stock market is unpredictable, and it is impossible to time it. Inflation, recession, low consumer spending and geopolitical issues can impact your investment portfolio. If you react to these market fluctuations, you could either buy too high or sell too low. This is when smart investors hold tight to the stocks that can deliver, no matter how the market moves. These are reliable stocks that do not fluctuate with every market movement.
When you have a portfolio of stalwarts that keep delivering rain or shine, you never have to worry about your portfolio underperforming. Here are seven reliable stocks that can deliver in all market situations, and you will never regret owning them. With that in mind, let’s take a look at these stocks.
Colgate Palmolive (CL)
One solid reason to add Colgate-Palmolive (NYSE:CL) to your portfolio is the massive range of products it owns. Many families tend to use the same consumer brands for years. This could be a preference or a habit, but Colgate Palmolive also benefits from this. It owns well-known brands, including Colgate toothpaste and other personal hygiene products.
With a dividend yield of 2.13%, Colgate-Palmolive is one of the most reliable stocks that will continue to perform regardless of market moves. Trading at $93, the stock is up 16% year-to-date and is moving towards the 52-week high of $95.
The stock has soared 24% in the past 12 months, and believe buying CL stock below $100 is a smart move. The company has increased dividends annually for over six decades and has enough liquidity to keep doing so.
After beating analyst expectations in the first quarter, management raised the outlook for FY2024 and expects sales growth of 2% to 5%. It reported revenue of $5.07 billion and an EPS of 86 cents.
Pepsi (PEP)
Beverage giant PepsiCo (NASDAQ:PEP) has existed for over 50 years and has seen several market ups and downs. As one of the most popular companies, PepsiCo has a global presence and is a dividend aristocrat.
Besides being acclaimed as an ideal stock for passive income investors, PepsiCo has a diversified business with multiple brands, including Frito-Lay snacks and Aquafina under its umbrella. This ensures steady revenue growth over the years.
Trading at $173, the stock has been up 29% in the past five years. It has a dividend yield of 3.13% and increased the dividend by 7% in the recent quarter, which is its 52nd consecutive increase.
While this may not be a huge surge compared to the tech stocks, PepsiCo offers stability and reliability. The company enjoys pricing power and has a robust cash flow that can reward patient investors. The stock has recently pulled back; this is your time to pounce. PepsiCo will provide a cushion in uncertain times.
Post-earnings, Morgan Stanley called the valuation compressed and had an overweight rating for the stock with a price target of $190. The investment bank expects a rebound later in the year.
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) is a strong business and a global brand. It is hard to imagine life without Alphabet’s products and services. The tech giant is known for its Google search engine and YouTube, which generates most business revenue.
It generated $8.1 billion in revenue from YouTube advertising and $9.6 billion in sales from Google Cloud. Alphabet has a wide umbrella of products that generate consistent revenue, and can generate free cash flow that has only increased over the years.
Trading at $178, the stock is up 27% YTD and 45% in the past 12 months. Buying GOOG stock below $200 is smart and will reap significant gains. The company has solid free cash flow, which enables it to pay dividends.
While it recently announced its first-ever dividend, Alphabet can sustain it. It ended the first quarter with a free cash flow of $16.8 billion and announced a dividend of $0.20 per share. Alphabet stock is the one to buy and hold for years, no matter the market situation.
Microsoft (MSFT)
Tech dinosaur Microsoft (NASDAQ:MSFT) has delivered in all market conditions and is leading with AI investments. Its timely investment in OpenAI has already started to pay off, and it has already integrated AI into its products and services. Trading at $424, the stock is up 14% YTD and over 200% in the past five years.
Microsoft is aggressively investing in AI and has recently committed to investing $3.2 billion in AI in Sweden. It recently launched the new Surface laptops, which the company claims to be the ultimate combination of Copilot+ and AI. Microsoft is a powerhouse that does not stop delivering, and with a strong presence across multiple industries and segments, Microsoft is here to stay.
It is expanding its cloud platform, which is also the biggest revenue driver. In the recent quarter, the segment generated $35.1 billion in revenue, up 23% year over year. The total revenue stood at $61.9 billion, up 17% year over year.
Its advertising business is a gem that quietly continues to generate revenue, which increased 19% year over year. Microsoft does have competitors, but no company has been able to achieve the market domination that it has today. It also offers a dividend yield of 0.70%.
Amazon (AMZN)
Up 23% YTD, Amazon (NASDAQ:AMZN) stock is trading at $185 today and is close to the 52-week high. The e-commerce giant is making significant improvements in the business, which has helped reduce operating costs and improve the fundamentals.
One of the largest cloud computing service providers, Amazon Web Services (AWS), remains the largest contributor to revenue growth. The company reported a blow-out fourth quarter after the holiday season and followed it with another impressive first quarter.
In the first quarter, cloud computing revenue jumped 17% to $25 million, and operating income soared 200% to $15.3 billion, showing that its cost-cutting measures are working. Even the advertising segment saw a 24% revenue jump, and this segment could continue growing as Amazon emerges as one of the biggest players in the online advertising space.
Amazon is only getting started and could soar to incredible highs in the coming years. Many investors believe that buying stocks when trading high isn’t a good idea, but with Amazon, if you choose to wait, you could end up waiting forever. Buy the stock below $200 while you can.
Visa (V)
With over 4 billion cards in circulation, Visa (NYSE:V) holds the largest market share in the industry and works with more than 14,000 financial institutions worldwide. The company has nailed a business structure where it makes money as a processor. Whenever we use a card to make a payment, Visa earns a fee, which accounts for the majority of its revenue. Visa managed to thrive even in times of high inflation.
The stock is up 7% YTD and is exchanging hands for $277. It has soared 22% over the past 12 months and is one of the best fintech stocks. For the second quarter, it reported a 16% jump in the cross-border volume and an 8% jump in payments volume.
The company recently announced that it generated $40 billion in e-commerce revenue globally through its tokenization technology. This feat is impressive, and it has issued more than 10 billion tokens. This has led to an improvement in global payment approval rates and a reduction in fraud.
Visa is a reliable industry player with little risk. It has survived several market uncertainties and continues to move forward. It also has a modest dividend yield of 0.75%.
Costco (COST)
Up 29% YTD, Costco (NASDAQ:COST) is trading for $842 and has gained 64% in the last five years. The stock is steadily rallying upwards, with a dividend yield of 0.55%. While the yield is not very impressive, the stock’s upward rally is worth enjoying. I’d recommended the stock when it was trading at $743.
In the recent quarter, it reported a 9.1% YOY jump in revenue and a 20.7% YOY rise in its e-commerce sales. With growing revenue and profit, Costco has set a strong momentum for the second half of 2024.
One of the most reliable stocks, Costco is a high-quality business that benefits from consumer loyalty. It reported a 6.6% rise in same-store sales even in an inflationary period. Its membership model, with 74.5 million member households, ensures steady annual fee income. The company has not increased membership prices since 2017, which has worked in its favor.
Costco enjoys a competitive advantage in the industry, and its stock has outperformed the market for years. The company has ample scope for expansion and could benefit as consumer spending improves. With a strong presence across the United States, Costco is ready to expand across Asia and Europe and aims to open 31 new locations by the end of the year.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
