Where To Invest $1,000 Right Now (Safe, Low-Risk Stock)

No, that’s not a sky-high yield. But again, this is a low-risk play. If you want a 10% yield, you have to assume a ton of risk. Besides, 2.5% smokes the broader market’s yield. And you’re getting inflation-beating growth on top of it. Want more evidence of quality? How about this?

Johnson & Johnson has a AAA credit rating.

They’re one of only two companies in the world that can claim that. Yet even with this blue-chip stock being about as dark blue as it gets, the valuation is reasonable.

The stock trades hands for a forward P/E ratio below 18!

That’s based on the midpoint of guidance for this fiscal year’s adjusted EPS. I do not view that as extreme at all. Not in this market. And not for this level of quality. To be fair, most of the stock’s basic valuation metrics are at or slightly above their recent historical averages. That’s not surprising. The entire market is elevated right now. But I view this as a situation where the stock is simply less of a bargain than it was before instead of a sign of outright expensiveness.

Now, I’m not saying that Johnson & Johnson is a risk-free investment.

No investment is without risk. Every single business has risk. It’s up to an investor to weigh those risks against the long-term opportunities. What I am saying is that, in my view, Johnson & Johnson ranks very low on the risk scale. Risks here include competition, regulation, and litigation. But that’s true of any business.

The bottom line is that it’s a reasonably valued blue-chip dividend growth stock.

This is a fantastic long-term wealth and passive income compounder. Investing $1,000 10 years ago into this stock would have compounded at an annual rate of more than 13% and turned that $1,000 into almost $3,500. That’s more than tripling your money in a very low-risk way.

If you have $1,000 to invest right now, and you want that capital to go to work for you over the long term, Johnson & Johnson is very much worth considering. And stay tuned for the next video where we’ll be covering a higher-risk investment idea for a $1,000 investment.

View single page >> |

Disclaimer: Please consult with a licensed investment professional before investing any of your money. Never invest in a security or idea featured on this channel unless you can afford to lose ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.