Storm Shelter: 7 Safe Haven Stocks to Batten Down the Hatches


  • Costco (COST): Costco may offer investors some insulation thanks to a higher-income consumer.
  • Home Depot (HD): Home Depot may rise on the expanded total addressable market.
  • Dominion Energy (D): Dominion Energy should benefit from its natural monopoly.
  • Read more about these top safe haven stocks to buy!
Safe Haven Stocks to Buy - Storm Shelter: 7 Safe Haven Stocks to Batten Down the Hatches

Source: Andy Dean Photography / Shutterstock

With the market potentially entering a period of consolidation, investors may want to consider safe haven stocks to buy. No, it’s not the most exciting idea. Yet surviving to live another day is a valuable skill on Wall Street.

First and foremost, safe havens provide stability and predictability. Generally, we’re talking about enterprises that feature stable earnings and cash flows. Further, because of their established businesses, they’re much more predictable. While this predictability comes at the expense of outright market potential, you also have the benefit of greater reliability.

Second, investors who choose safe haven stocks to buy may benefit from capital preservation. During periods of turbulence or heightened uncertainty, these ideas tend to maintain their value better than speculative fare. That makes them contextually more attractive than enterprises that are binary in nature.

Again, it’s not about getting rich with these plays. Rather, it’s just setting yourself up for later success. On that note, check out these safe haven stocks to buy.

Costco (COST)

A Costco Wholesale (COST) warehouse in Auburn Hills, Michigan.
Source: ilzesgimene /

A membership-only open-warehouse-style retailer, Costco (NASDAQ:COST) is essentially an icon of middle-class America. What makes the company so enticing as one of the safe haven stocks to buy is the underlying economic resilience. When stacked against other big-box retailers, Costco members tend to generate a greater average income. That’s not surprising given the annual membership fee.

Further, with a higher-income consumer base, Costco may be better suited to handle turbulence. In the retail spectrum, it’s in the rear with the gear, so to speak. That’s good if you’re more focused on capital preservation. Aside from a miss in the quarter ended May 31, 2023, Costco has been consistently beating its bottom-line quarterly targets.

Looking out to the end of the current fiscal year, covering experts believe the retailer will post earnings per share of $16.20 on revenue of $254.22 billion. That’s a decent improvement over last year’s results of earnings of $14.16 per share on sales of $242.29 billion. If you’re looking for predictability, COST is one of the top safe haven stocks to buy.

Home Depot (HD)

Home Depot (HD) storefront on a sunny day
Source: Jonathan Weiss /

A home-improvement retailing giant, Home Depot (NYSE:HD) is a necessity. It’s one of the reasons why its stores were open longer than other retailers during the worst of the Covid-19 disaster. Further, the company is a beacon of hope during times of inclement conditions. During non-disasters, Home Depot is there when Murphy’s law strikes hapless homeowners.

Fundamentally, with the real estate boom transforming the economy, it’s quite possible that HD will robust demand for years. Therefore, it makes logical sense as one of the safe haven stocks to buy. To be sure, it’s not the most exciting idea out there. However, throughout fiscal 2023, the company posted an average earnings surprise of 2.1%. Further, it recently beat its Q1 target.

For the current fiscal year, experts project EPS to land at $15.33 on revenue of $154.37 billion. That’s a modest improvement over last year’s results of $15.11 EPS on sales of $152.67 billion. In the following year, earnings could rise to $16.36 per share on sales of $158.64 billion.

It also carries a forward dividend yield of 2.64%.

Dominion Energy (D)

a truck bearing the Dominion Energy logo
Source: ying /

Falling under the broad utilities space, Dominion Energy (NYSE:D) focuses on the regulated electric market. Per its public profile, Dominion produces and distributes energy, particularly in the Carolinas and Virginia. On a fundamental note, the company may benefit from millennial migration trends. Young people are moving from costly coastal metropolitan areas to more rural regions for cost-of-living reasons.

Additionally, if the remote work dynamic expands or if the gig economy takes off, Dominion may become even more relevant. As it stands, the utility firm benefits from a natural monopoly. Because of its entrenched business profile, would-be competitors don’t even bother.

For fiscal 2024, analysts anticipate EPS to reach $2.79 on revenue of $15.85 billion. Further, the blue-sky target calls for earnings of $3.07 per share with a top line of $16.16 billion. Last year, Dominion posted EPS of $1.99 on sales of $14.39 billion.

With a robust forward yield of 5.05%, Dominion deserves to be on your radar for safe haven stocks to buy.

Merck (MRK)

Merck (MRK) logo outside of corporate building
Source: Atmosphere1 /

Based in Rahway, New Jersey, Merck (NYSE:MRK) operates in the broader healthcare arena. Specifically, it falls under the drug manufacturing category. Per its public profile, Merck operates through two segments: Pharmaceutical and Animal Health. Both areas are incredibly relevant, especially in the U.S. market, with pet owners increasing their spending on their furry friends.

Further, the healthcare arena is a natural place for targeting safe haven stocks to buy. While we talk much about attaining wealth for retirement and what not, that doesn’t mean much without health. So, people have a tendency of doing whatever it takes to be well. Cynically, that’s a positive for MRK stock.

Financially, the company is a strong performer. In the past four quarters since Q1 2024, its average positive surprise clocked in at 38.13%. For fiscal 2024, experts forecast EPS to reach $8.66 on revenue of $64.26 billion. Last year, EPS landed at $1.51 on sales of $60.12 billion.

Merck offers a forward yield of 2.39%, adding to its case for safe haven stocks to buy.

T-Mobile (TMUS)

tmobile (TMUS) logo on an office building facade
Source: Shutterstock

Arguably one of the riskier ideas among safe haven stocks to buy, T-Mobile (NASDAQ:TMUS) operates in the telecom services space. With its subsidiaries, T-Mobile provides mobile communication services in the U.S., Puerto Rico and the Virgin Islands. The company offers a multitude of products, including voice, messaging and data to customers across postpaid, prepaid and wholesale categories.

Analysts are enthused with the opportunity, rating shares a unanimous strong buy. That’s not cheap unanimity either, with 14 expert voices chiming in. Further, the average price target lands at $188.42, with the high side rising to $202. Aside from an unsightly miss in Q4 2023, T-Mobile has been consistent in beating its bottom-line quarterly targets.

For fiscal 2024, covering experts project EPS to reach $9 on revenue of $80.02 billion. While only a modest improvement in the top line (with last year’s print coming in at $78.56 billion), it’s a huge projected rise from 2023’s EPS of $6.93. For fiscal 2025, EPS could swing up again to $11.13 on revenue of $82.96 billion.


Photo of IBM (IBM) building as seen through the canopy of a tree. IBM logo is in large letters on side of building.

As a legacy tech giant, IBM (NYSE:IBM) is recognized the world over. However, for the longest time, it represented a boring enterprise. Over the past one-year period, though, the company known as “Big Blue” has been flexing its muscle. Personally, I believe it deserves more respect thanks to its myriad relevancies in artificial intelligence, particularly deep learning models.

What makes IBM an intriguing idea for safe haven stocks to buy is that most investors are piling into the usual suspects. There’s nothing wrong with that. However, such strategies may be prone to volatility risk. On the other hand, IBM tends to fly under the radar, which makes it more appealing from a value perspective.

Financially, the company has been consistent, with an average positive earnings surprise of 4.88% in the last four quarters. For fiscal 2024, analysts project EPS to reach $9.92 on sales of $63.04 billion. Last year, the tech firm posted $9.62 EPS on revenue of $61.86 billion.

Notably, IBM offers a forward dividend yield of 3.99%. It’s an assuming but solid idea for safe haven stocks to buy.

Yum! Brands (YUM)

YUM stock: the yum logo on the side of a building
Source: JHVEPhoto /

Perhaps the most adventurous idea among safe haven stocks to buy on this list, Yum! Brands (NYSE:YUM) may deserve a closer look. Based in Louisville, Kentucky, Yum along with its subsidiaries develops, operates and franchises quick-service restaurants worldwide. It operates some of the most popular fast-food brands, including KFC and Pizza Hut.

Of course, the challenges in the consumer economy – particularly with inflation – pose challenges for YUM and its ilk. At the same time, American consumers in particular have shown little desire to curb their spending. And aside from the most recent jobs print, the overall situation in the labor market has been robust. So, it’s possible that Yum Brands could surprise Wall Street.

Financially, the company is hit or miss. However, in the past four quarters, the average positive earnings surprise came out to 3.23%. For fiscal 2024, analysts are hoping for EPS of $5.68 on sales of $7.7 billion. That’s a decent improvement over last year’s results of $5.17 EPS on revenue of $7.08 billion.

In closing, Yum also offers a forward yield just under 2%.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

Article printed from InvestorPlace Media,

©2024 InvestorPlace Media, LLC