The underlying businesses of these low-risk stocks can thrive in a harsh environment
If you’re looking for some low-risk stocks for inflation-proofing, investing in historically stable companies with robust cash flows and dividends is the best bet right now. A recession is on the cards later this year, and if you are only worried about protecting what you have while having returns that can beat inflation, I would not recommend investing in many of the hotter growth stocks this year.
Now don’t get me wrong — growth names are an essential part of your portfolio and they can substantially amplify your returns over a long period of time. But for retirees and people looking to preserve their existing capital, the volatility that comes with growth stocks may not be worth it.
With that in mind, let’s look at stocks that have returned at least 6% or more annually. The core consumer price index currently sits at 5.6% in the U.S., and it has been sticky for the past few months.
The following seven can comfortably beat that and some more with little downside risk:
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