With the war in Iran mixed with troubling inflation metrics and recent news of large-scale layoffs, many investors are looking at “risk-off” investments as they rotate out of growth-oriented strategies and favor safe stocks.
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Defensive strategies have become a priority for many investors who are skeptical about an uncertain stock market that has drifted lower since Jan. 1. However, the solid stocks on this list have powered higher even against these headwinds. They also are all entrenched names with more than $40 billion in market value and dividend yields that top 2%.
When markets get volatile, stability is the name of the game. The following seven safe stocks feature these characteristics and can give investors peace of mind:
| Stock | Sector | Market capitalization | Dividend yield |
| AT&T Inc. (ticker: T) | Communication services | $190.7 billion | 4.1% |
| Consolidated Edison Inc. (ED) | Utilities | $41.3 billion | 3.0% |
| Digital Realty Trust Inc. (DLR) | Real estate | $65 billion | 2.6% |
| Gilead Sciences Inc. (GILD) | Health care | $175.7 billion | 2.3% |
| Johnson & Johnson (JNJ) | Health care | $586.2 billion | 2.2% |
| Lockheed Martin Corp. (LMT) | Industrials | $146.1 billion | 2.2% |
| Target Corp. (TGT) | Consumer staples | $55.5 billion | 3.7% |
AT&T Inc. (T)
A quintessential risk-off stock, AT&T enjoys durable revenue and earnings thanks to a massive and consistent customer base. After divesting its non-core assets in recent years, the company streamlined operations and reduced debt, positioning itself for more stable, long-term performance. With roughly 120 million wireless subscribers, AT&T remains deeply embedded in the daily lives of consumers and businesses alike. It also boasts a dividend that is more than three times that of the S&P 500 at present, providing consistent income to shareholders.
Consolidated Edison Inc. (ED)
Consolidated Edison is a regulated utility serving millions of electric and natural gas customers in the New York metropolitan area. Its business model is a near-monopoly without significant competition, built on delivering essential energy and power services that remain in demand regardless of economic conditions. That makes it a safe pick for those worried about big-picture shifts in consumer or business spending. ConEd also boasts 52 consecutive years of dividend increases, showing a long-term commitment to sharing the wealth with its investors.
Digital Realty Trust Inc. (DLR)
Digital Realty Trust is a real estate company, not a tech stock. However, it could be a good long-term play on AI because it doesn’t have a proprietary system in the fight. The company specializes in data centers and colocation services, making it a critical player in the modern digital economy. With over 300 sites across more than 30 countries and major clients that include Microsoft Corp. (MSFT), Nvidia Corp. (NVDA) and Amazon.com Inc. (AMZN), DLR has a value proposition that should be obvious to those who are following the AI megatrend. What’s more, the firm is structured as a real estate investment trust and is required to distribute at least 90% of its taxable income to shareholders as a result. That means a consistent and attractive dividend powered by steady revenue from big-name clients.
Gilead Sciences Inc. (GILD)
While the stock market in general is struggling in 2026, Gilead Sciences stands out with double-digit year-to-date gains. That’s in part because the drugmaker specializes in treatments for complex and often underserved medical conditions, including HIV/AIDS and certain cancers. This focus allows the company to maintain high margins and consistent demand for its therapies. Additionally, health care spending tends to be less sensitive to economic cycles, providing a stable foundation for Gilead’s business. Its strong pipeline and ongoing research efforts also support future growth as well as a reliable and growing dividend that was bumped to 82 cents in February — nearly double the 43 cents paid a decade ago.
[Read: 7 Dividend Stocks to Buy and Hold Forever]
Johnson & Johnson (JNJ)
Another leader in the health care sector, Johnson & Johnson is one of the most established companies on the planet, with a founding date of 1886 and a long history of strength. The company’s AAA credit rating makes it one of just two U.S. corporations that get this highest mark, the other being Microsoft. Steady demand for medical treatments, along with unrivaled scale, makes it very likely the company will remain a leader in the future. Johnson & Johnson is also a “Dividend King” with a stunning 63 consecutive years of dividend growth.
Lockheed Martin Corp. (LMT)
While war is never a good thing, Lockheed Martin is a company that has benefited from recent geopolitical unrest thanks to its leading role in the defense sector. And beyond the short-term impacts of military spending, long-term government contracts provide predictable revenue for this industrial icon. LMT has trusted relationships and technological capabilities that make it hard for other firms to compete, and a 30% gain year to date proves that this low-risk leader is doing quite well even as stocks in other sectors face headwinds.
Target Corp. (TGT)
While Target certainly sells some discretionary items, it remains a major provider of household essentials, toiletries and groceries for American households. That provides a measure of recession-proof sales, as shoppers always need soap and bread regardless of broader spending pressures. Over the last year or so, TGT took steps to boost efficiency, including new floor plans and displays as well as inventory changes, and the timing couldn’t have been better. On top of all this, Target has boosted its dividend for more than 50 consecutive years to show consistent income potential over various economic environments.
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7 Best Safe Stocks to Buy Now originally appeared on usnews.com
Update 04/09/26: This story was previously published at an earlier date and has been updated with new information.
