Latest news with #lowrisk
Globe and Mail
29-06-2025
- Business
- Globe and Mail
Got $1,000 to Invest? Here Are 3 Low-Risk Dividend Stocks to Buy Right Now.
Dividend-paying stocks tend to be lower-risk investments compared to non-payers. They typically produce more than enough cash to fund their growth, leaving them with excess to return to shareholders via dividends. However, some dividend stocks are less risky than others. Black Hills (NYSE: BKH), Kinder Morgan (NYSE: KMI), and American States Water (NYSE: AWR) stand out to three contributing analysts for their lower risk profiles. As a result, they can turn $1,000 into durable streams of dividend income. Black Hills is a boring, high-yield regulated utility Reuben Gregg Brewer (Black Hills): From a business perspective, the ultimate achievement is a monopoly. This is such a powerful industry position that the government attempts to prevent monopolies from a few exceptions. One exception is the utility sector, as building two electric grids in one region would be prohibitively difficult. That's why the government regulates utilities like Black Hills, which has a monopoly on natural gas distribution and electricity in the areas it serves in Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. There are both positive and negative aspects to being a regulated utility. One negative is that the government dictates Black Hill's rates and capital investment plans. Regulators try to strike a balance between reward, reliability, and customer costs, leading to slow and steady growth for utilities like Black Hills. That's a positive, as regulator-approved spending generally occurs regardless of what's going on in the economy or on Wall Street. Investors buying Black Hills are, effectively, buying into a fairly reliable business through the economic cycle. In the case of Black Hills, its customer base is growing around twice as quickly as the broader U.S. population. There's a good reason to believe that more regulator-approved growth lies ahead. Looking backward, meanwhile, investors have benefited from a regularly increasing dividend payment. At this point, Black Hills is one of the few utilities to have achieved Dividend King status, with over five decades of annual hikes. Given the company's expectation of 4% to 6% earnings growth for the foreseeable future, meanwhile, it seems like the dividend streak will continue. Add in an above industry-average yield of 4.8% and you can see why this low-risk dividend stock might be a great buy today. A $1,000 investment will net you around 17 shares. A very bankable income stream Matt DiLallo (Kinder Morgan): Kinder Morgan operates one of the country's largest energy infrastructure platforms. Its pipelines, processing plants, terminals, and other midstream energy assets generate lots of very stable cash flow. Take-or-pay contracts, which entitle the company to payment regardless of volume, back 64% of the company's annual cash flows. On top of that, Kinder Morgan has hedging contracts that lock in an additional 5% of its cash flows. Meanwhile, another 26% of its cash flows are fee-based, which provides it with a fixed fee based on volumes (most of which tend to be very stable). That leaves only about 5% of its annual earnings exposed to the ups and downs of commodity prices. The company's highly contracted and predictable cash flows provide a rock-solid foundation for its more than 4% yielding dividend. The company has high visibility in its cash flow, which it expects will grow by 5% to $5.9 billion this year. That's more than enough to cover its expected $2.6 billion dividend outlay. It's also plenty to fund its entire capital spending level for this year, with room to spare ($150 million in excess free cash flow). That surplus cash will enhance the company's already strong financial flexibility. Kinder Morgan has an investment-grade balance sheet backed by a conservative leverage ratio. The midstream giant currently has $8.8 billion of growth capital projects underway. Those projects, predominantly natural gas pipelines ($8 billion), will enter commercial service through 2030. As they do, they'll add to the company's stable sources of cash flow. That should give Kinder Morgan more fuel to increase its dividend. The pipeline giant has raised its payout for eight straight years. With a 4% dividend yield, a $1,000 investment would generate about $40 (and growing) of dividend income each year. 70 years of dividend increases Neha Chamaria (American States Water): Given the uncertain times we are in right now, adding stocks that can earn you some reliable extra income is a smart move. Even better, a defensive, low-risk dividend stock like American States Water should send bigger dividend checks your way every year. American States Water is one of the largest water utilities in the U.S., serving 1 million consumers across nine states. The company also owns an electric utility and provides water and wastewater services to 12 military bases under 50-year contracts. As a regulated utility, American States Water generates stable cash flows, which is why it has been able to pay a dividend every year since 1931 and has raised it for 70 consecutive years. That incredible dividend streak makes American States Water the top Dividend King, with the longest streak of dividend increases. After growing its dividend by a compound annual growth rate (CAGR) of 8.8% over the past five years, American States expects the trend to continue and is aiming to increase its dividend by a CAGR of over 7% in the long term. Management believes there's ample room for dividends to grow, given the company's earnings growth prospects backed by planned capital expenditures. All that makes American States Water one of the safest and most reliable dividend stocks out there. The dividend growth potential is the cherry on top, making this 2.4%-yielding stock an incredible buy now. Should you invest $1,000 in Kinder Morgan right now? Before you buy stock in Kinder Morgan, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kinder Morgan wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor 's total average return is1,062% — a market-crushing outperformance compared to177%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025
Yahoo
27-06-2025
- Business
- Yahoo
Omega Flex Declares Dividend Amid Changes in Insider Trading Activity
Omega Flex, Inc. (NASDAQ:OFLX) is one of the 10 low risk dividend paying stocks for June 2025. The company has announced a quarterly dividend for its shareholders amidst the ups and downs in its insider trading activities. A technician in a lab coat troubleshooting a complex corrugated medical tubing system. Omega Flex, Inc. (NASDAQ:OFLX) is a leading innovator and manufacturer of flexible metal hose and piping products. Running its operations from Pennsylvania, the company has a client base comprised of commercial construction, automotive, medical, healthcare facilities, and pharmaceuticals. Incorporated in 1975, Omega Flex, Inc. (NASDAQ:OFLX) currently has over 100 patents registered across the globe. In the previous month of May, the company's insider transaction saw a positive change with Edwin B. Moran, the President of Omega Flex, Inc. (NASDAQ:OFLX), acquiring 500 shares, at a transaction value of $14,860. This month, on June 12, 2025, EC Kevin Hoben sold 972 shares of the company for a total price of $30,666. The stocks' performance in the last week, following the sales, went up by 0.68%. On June 18, 2025, Omega Flex, Inc. (NASDAQ:OFLX) announced its quarterly dividend payment of $0.34 per share payable on July 10, 2025, amidst these insider trading activities. The company has a low beta of 0.37, signaling high restraint and low risk during market changes. Omega Flex, Inc. (NASDAQ:OFLX)'s dividend yield of 4.20% stands attractive and available to shareholders of record on June 30, 2025. While we acknowledge the potential of OFLX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure. None. Sign in to access your portfolio
Yahoo
10-05-2025
- Business
- Yahoo
Is aTyr Pharma, Inc. (ATYR) the Low Risk High Reward Stock Set to Triple by 2030?
We recently published a list of . In this article, we are going to take a look at where aTyr Pharma, Inc. (NASDAQ:ATYR) stands against other low risk high reward stocks set to triple by 2030. The market is getting tough these days with increasing interest rates, tense world politics, and inconsistent economic conditions, and investors are constantly looking for opportunities. As we hit the middle of the decade, people are focusing more on diversifying investments and managing risks. Morgan Stanley's Investment Committee believes investors should avoid passive strategies and big tech stocks. The Committee suggests looking at undervalued opportunities that might give better returns with less risk. The broader market is trading way too high now—over 22 times forward earnings, putting it in the 95th percentile of historical values. In addition to this, the top 10 stocks make up almost 40% of the index, creating a problem where investors just focus on a few companies called the 'Magnificent 7'. Wall Street's predictions for earnings growth in 2025-2026 seem unrealistic, especially with signs of the economy slowing down and profit margins getting squeezed. These dangers, plus the fact that stocks and bonds are both volatile and moving together, show why investors need alternatives other than passive U.S. stocks. President Trump's renewed tariff regime—some as high as 145%—has hurt economic forecasts worldwide and messed up supply chains, as reported by Reuters. Companies like Electrolux, Diageo, and Logitech have already lowered sales forecasts or stopped giving guidance altogether because of tariff impacts. Although countries including India might benefit from changing trade patterns, most global businesses are facing new economic uncertainty. With all these headwinds, many investors are moving to safer assets like high-dividend stocks, preferred securities, and undervalued healthcare and consumer defensive companies. These lower-risk stocks help reduce portfolio swings and can benefit when money flows to safer investments during market downturns. Furthermore, investors are also reflecting this shift, as seen in a recent Barclays survey of 325 hedge fund managers. The survey shows managers handling nearly $9 trillion and growing demand for strategies with minimal exposure to equity markets, some seeking as low as 5% exposure or even zero. Multi-manager hedge funds, algorithmic strategies, and defensive plays are now more popular than traditional approaches. In this complicated environment, finding overlooked, low-risk stocks with strong fundamentals and long-term potential is crucial. These companies operate in resilient sectors and offer both protection against losses and the chance for substantial returns by 2030. To identify the 10 Low Risk High Reward Stocks Set to Triple by 2030, we began by screening publicly traded companies using Finviz, focusing on those with an equity beta below 1.0 to ensure relatively low market risk. We then filtered this subset to include only those stocks with a projected upside potential of over 300%, indicating high return prospects. To further validate investor confidence, we analyzed hedge fund sentiment using Insider Monkey's database, which tracks the holdings of over 1,000 elite hedge funds as of the end of the fourth quarter of 2024. The final list is ranked in ascending order based on the number of hedge funds holding each stock. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Copyright: dolgachov / 123RF Stock Photo Number of Hedge Fund Holders: 25 Potential upside: 415.95% aTyr Pharma, Inc. (NASDAQ:ATYR) is a clinical-stage biotech company working on breakthrough medicines using its special tRNA synthetase platform. Its main drug, efzofitimod, is being tested for pulmonary sarcoidosis – a rare, long-lasting disease without many treatment options. The company is also developing other drugs for systemic sclerosis, lung disease, and similar fibrosis conditions. The company ended 2024 with $75.1 million in cash and raised $18.8 million in early 2025 through ATM offerings, which should keep it funded until Q1 2026. This money supports aTyr's ongoing clinical trials, including the major Phase 3 EFZO-FIT study and Phase 2 EFZO-CONNECT study. In 2024, aTyr Pharma, Inc. (NASDAQ:ATYR) spent $54.4 million on R&D, consisting mostly of these trials and manufacturing efzofitimod. Moreover, the company just finished enrolling patients in its Phase 3 EFZO-FIT study – the biggest intervention trial ever done for pulmonary sarcoidosis. aTyr Pharma, Inc. (NASDAQ:ATYR) is also running a Phase 2 trial for systemic sclerosis lung disease and has published lab research showing how efzofitimod affects lung inflammation and scarring. With solid funding, promising data, and several drug candidates, aTyr Pharma, Inc. (NASDAQ:ATYR) looks like one of the best low risk stocks out there. Overall, ATYR ranks 3rd on our list of low risk high reward stocks set to triple by 2030. While we acknowledge the potential of ATYR as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ATYR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
