Is Johnson & Johnson (JNJ) the Best Safe Stock to Buy According to Hedge Funds?

From Yahoo Finance: 2025-04-26 08:59:00

In an article highlighting the 11 Best Safe Stocks to Buy According to Hedge Funds, Johnson & Johnson (NYSE:JNJ) is compared against other top safe stocks. Hedge funds are increasingly favoring low-risk stocks with strong balance sheets and solid market positioning. As global recession risks loom, hedge funds are moving away from consumer discretionary stocks in anticipation of economic trouble. The top 50 stocks preferred by hedge funds have collectively returned 10% in 2025 compared to the market’s 3% gain.

A study comparing low-volatility and high-volatility stocks worldwide found that low-risk stocks outperformed high-risk stocks across developed and emerging markets. This challenges the traditional notion that higher returns are linked to higher risks. Insider Monkey compiled a list of the 11 best safe stocks based on hedge fund data, emphasizing stocks with positive returns, revenue growth, and dividend payments for safety and reliability.

Johnson & Johnson (NYSE:JNJ) stands out as a top safe stock according to hedge funds, with 98 funds holding shares and a forward dividend of $5.20. The global healthcare company is investing over $55 billion in the US over the next four years, focusing on manufacturing, R&D, and technology. With a diversified portfolio covering pharmaceuticals, medical devices, and consumer health products, JNJ continues to innovate and grow.

JNJ’s strategic moves include acquisitions in central nervous system disorders and consistent dividend increases for shareholders. The company expects sales growth between 3.3% to 4.3% in 2025, driven by key products like TREMFYA. While JNJ ranks 11th on the list of best safe stocks, its commitment to innovation and shareholder value makes it a compelling investment. For those seeking higher returns in AI stocks, there are opportunities beyond JNJ in the market.



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