Top 3 Stocks for Safe Returns Now and Into Next Year
As 2024 comes to an end, some topics and issues might cause some volatility to start in 2025, making these safe stocks a must-have.
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As the year comes to an end, many issues remain to be solved in 2025, such as , conflicts in the geopolitical arena, and a new United States presidential inauguration. Each of these topics breeds volatility in the stock market, so investors really need to tread carefully in the coming months to avoid falling into potential traps and volatility pockets.
This is where today’s list of becomes useful, as it offers both safety and low volatility. As every portfolio needs a potential growth source on top of this safety, there is also a worthy addition in the that might benefit from the current trends in the . Safety, growth, and the ability to start 2025 on the right foot so that the rest of the year is an open field ahead for individual plays and isolated gains.
Making this list are stocks like for stable and predictable demand, making it easier for analysts to value and project the company’s financials. Then there is the most sought-after real estate investment trust (), , and its monthly dividend payment, which currently outpaces inflation rates and GDP growth projections. Finally, the potential mortgage rebound could boost shares of .
Why McDonald’s Stock Offers Great Value at Its Current Price
Value propositions from McDonald’s don’t just come from their affordable prices for customers; they also apply to investors today. As the stock lowered to only while the broader S&P 500 stood right at its all-time highs, investors understanding the nature of will call for closing down this gap.
With a beta of 0.7, McDonald’s stock isn’t one to give investors a wild ride in the coming months, but that is the entire point of keeping this name for portfolio protection and stability in the future. This is why Wall Street analysts still highly regard this company, no matter what the business cycle is.
Particularly, analysts at Truist Financial now have a Buy rating on McDonald’s stock, with a . They call for a net upside of as much as 16% from where it trades today, which is not an easy feat for a company that trades at a $214 billion market capitalization today.
Other benefits of owning McDonald’s come from the company’s dividend, a $7.08 a share payout today that offers up to . These yields are not quite up to par with inflation rates of 2.7%, but they still give investors a near breakeven rate to inflation on top of the double-digit upside potential through price appreciation.
Ultimately, institutional investors are another gauge to give retail investors an idea of the sentiment for McDonald’s stock. Geode Capital Management boosted its holdings by 1.4% as of November 2024, bringing its net position up to , or 2.2% ownership in the company.
How Realty Income Stock’s Dividend Can Boost Your Buying Power for 2025
A monthly dividend can benefit investors who allocate to Real estate Income in two ways. First, it allows them to keep buying more shares every month and let the effect of monthly income compound. Second, it builds up liquidity and buying power for investors to take advantage of opportunities that might come up later in 2025.
As of today, the company offers shareholders a net payout of $3.16 a share, which translates into an . This one doubles inflation rates, so investors have a nice premium on their cash and buying power moving into 2025. However, the benefits of owning Realty Income stock don’t end there.
Analysts at the UBS Group have reiterated their Buy rating on realty Income stock as of November 2024. This time, they placed a on the company, which calls for a net upside of as much as 29.3% from where the stock trades today.
Why Rocket Companies Stock Could Soar as the Mortgage Industry Rebounds
Now that the Federal Reserve (the Fed) is set to cut interest rates again in December 2024, where the CME Group’s FedWatch tool is now of a rate cut, the mortgage industry might see some tailwinds coming up. As rates come down, so do mortgage rates, allowing some would-be homebuyers to step off the sidelines.
This is especially the case as the , meaning the risk-to-reward setups in mortgage stocks are incredibly attractive today. That’s where Rocket Companies stock comes into play today and where Wall Street analysts see an upside, as those from Morgan Stanley see a .
To prove these views right, the stock would have to stage a rally of up to 47.5% from where it trades today. This attractive upside potential is backed by the earnings per share , where analysts are looking for $0.14 in earnings compared to today’s $0.08, a net growth rate of 75%, to act as a tailwind for the stock.
As the year comes to an end, many issues remain to be solved in 2025, such as , conflicts in the geopolitical arena, and a new United States presidential inauguration. Each of these topics breeds volatility in the stock market, so investors really need to tread carefully in the coming months to avoid falling into potential traps and volatility pockets.
This is where today’s list of becomes useful, as it offers both safety and low volatility. As every portfolio needs a potential growth source on top of this safety, there is also a worthy addition in the that might benefit from the current trends in the . Safety, growth, and the ability to start 2025 on the right foot so that the rest of the year is an open field ahead for individual plays and isolated gains.
