Amid the rise of retail investors, cryptocurrency and online trading forums, value stocks with little charm or fame often get no spotlight. Retail investors purchased a total of $1.93 billion in assets during the market selloff on September 20, according to data from tactical research specialist Vanda Research, as reported by Bloomberg. Day traders mostly bought exchange-traded funds (ETFs) that track closely followed U.S. benchmark indexes, such as the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) and the Invesco QQQ Trust Series 1 (NASDAQ:QQQ), which recorded total inflows of $337 million.

According to separate data from Fidelity Brokerage Services LLC, tech giant Apple Inc. (NASDAQ:AAPL) was one of the most purchased assets on September 20 and remains in the top 10 buys as of September 30, 2021. Apple Inc. (NASDAQ:AAPL) holds the biggest market capitalization of nearly $2.4 trillion followed by other big tech stocks like Microsoft Corporation (NASDAQ:MSFT) and Alphabet Inc. (NASDAQ:GOOG) with $2.1 trillion and $1.7 trillion, respectively as of September 30.

Boring Stocks That Make Money

10. American States Water Company (NYSE:AWR)
Number of Hedge Fund Holders: 14

Dividend Yield: 1.69%

Trailing P/E: 34.79

Forward P/E: 33.42

We start our list of the 10 boring stocks that make money with American States Water Company (NYSE:AWR). The company distributes electricity and water services to residential, industrial, and commercial clients in the US. In the last 66 years, American States Water Company (NYSE:AWR) has grown its yearly cash payout, making it one of the dividend kings, or companies that have regularly increased dividends for at least 50 years.

American States Water Company (NYSE:AWR) currently pays its shareholders an annual dividend of $1.46 per share and has a payout ratio of 53.60%.

On August 4, Wells Fargo analyst Jonathan Reeder kept an Overweight rating on American States Water Company (NYSE:AWR) and raised his price target for the stock to $98 from $87.

In the second quarter of 2021, American States Water Company (NYSE:AWR) reported an EPS of $0.72, beating estimates by $0.01. The company’s second-quarter revenue came in at $128.41 million and beat revenue estimates by $6.87 million.

At the end of the second quarter of 2021, 14 hedge funds in the database of Insider Monkey held stakes worth $47.9 million in American States Water Company (NYSE:AWR), same with 14 in the previous quarter worth $38.9 million.

9. 3M Company (NYSE:MMM)
Number of Hedge Fund Holders: 42

Dividend Yield: 3.29%

Trailing P/E: 17.89

Forward P/E: 16.92

American industrial firm 3M Company (NYSE:MMM) ranks ninth on the list of 10 boring stocks that make money. Since its inception in 1902, the company has grown to become one of the world's largest manufacturers of industrial products such as personal safety products, adhesives, consumer health care products, and electronics.

3M Company (NYSE:MMM) has increased dividends for the past 63 years and currently pays an annual dividend of $5.92 per share. The company has a payout ratio of 58.36%.

In the second quarter of 2021, 3M Company (NYSE:MMM) reported an EPS of $2.59, beating estimates by $0.30. The company’s second-quarter revenue was $8.95 billion, an increase of 24.7% year over year, and beat revenue estimates by $371.24 million. The stock has gained 11.38% in the past twelve months.

At the end of the second quarter of 2021, 42 hedge funds in the database of Insider Monkey held stakes worth $1.58 billion in 3M Company (NYSE:MMM), up from 61 in the previous quarter worth $1.51 billion.

8. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 50

Dividend Yield: 5.19%

Trailing P/E: 54.85

Forward P/E: 13.11

Oil and gas giant Chevron Corporation (NYSE:CVX) ranks eighth on the list of 10 boring stocks that make money. Chevron Corporation (NYSE:CVX) has increased dividend payments for the past 34 years and currently pays its shareholders an annual dividend of $5.36 per share.

On September 15, Citi analyst Alastair Syme kept a Neutral rating on Chevron Corporation (NYSE:CVX) with a price target of $105 per share.

In the second quarter of 2021, Chevron Corporation (NYSE:CVX) reported an EPS of $1.71, beating estimates by $0.11. The company’s revenue in the second quarter grew 179% year over year to $37.6 billion and beat revenue estimates by $1.15 billion.

At the end of the second quarter of 2021, 50 hedge funds in the database of Insider Monkey held stakes worth $4.27 billion in Chevron Corporation (NYSE:CVX), up from 41 in the previous quarter worth $4.86 billion.

7. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 62

Dividend Yield: 3.19%

Trailing P/E: 28.31

Forward P/E: 21.79

Beverage company The Coca-Cola Company (NYSE:KO) ranks seventh on the list of 10 boring stocks that make money. The Atlanta-based beverage company is one of the most popular blue-chip dividend kings, having increased its dividend payment for 59 consecutive years. The Coca-Cola Company (NYSE:KO) currently pays an annualized dividend of $1.68 per share.

On July 22, Truist analyst Bill Chappell kept a Buy rating on The Coca-Cola Company (NYSE:KO) and increased his price target to $65 from $60.

In the second quarter of 2021, The Coca-Cola Company (NYSE:KO) reported an EPS of $0.68, beating estimates by $0.12. The company’s revenue in the second quarter grew 42% year over year to $10.13 billion and beat revenue estimates by $823.1 million. The stock has gained 6.82% in the past twelve months.

At the end of the second quarter of 2021, 62 hedge funds in the database of Insider Monkey held stakes worth $24.96 billion in The Coca-Cola Company (NYSE:KO), up from 61 in the previous quarter worth $24.90 billion.

6. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders: 62

Dividend Yield: 2.21%

Trailing P/E: 24.84

Forward P/E: 18.32

Caterpillar Inc. (NYSE:CAT) is a construction and mining equipment manufacturer and it ranks sixth on the list of 10 boring stocks that make money. Caterpillar Inc. (NYSE:CAT) is currently paying an annual dividend of $4.44 per share and offers a decent yield of 2.21%. The company has increased its dividend payments consecutively in the last 27 years. Caterpillar Inc.'s (NYSE:CAT) current payout ratio is 51.76%.

On August 2, Credit Suisse analyst Jamie Cook kept an Outperform rating on Caterpillar Inc. (NYSE:CAT) with a price target of $256 per share.

Caterpillar Inc. (NYSE:CAT) announced on September 10 its acquisition of CarbonPoint Solutions, a private Rhode Island-based carbon capture technology supplier, to reduce carbon emission in CAT's oil and gas segment.

In the second quarter of 2021, Caterpillar Inc. (NYSE:CAT) reported an EPS of $2.60, beating estimates by $0.19. The company’s revenue in the second quarter grew 29% year over year to $12.9 billion and beat revenue estimates by $360.55 million. The stock has gained 10.18%, year to date.

At the end of the second quarter of 2021, 62 hedge funds in the database of Insider Monkey held stakes worth $5.26 billion in Caterpillar Inc. (NYSE:CAT), up from 53 in the previous quarter worth $4.95 billion.

In the Q2 2021 investor letter of Oakmark Funds, the fund mentioned Caterpillar Inc. (NYSE: CAT) and discussed its stance on the firm. Here is what the fund said:

“Having followed the company closely for north of a decade, Caterpillar is a name we know well. For much of its history, the operating efficiency of the company left much to be desired, but its underlying competitive position was rarely in doubt. A series of actions over the past decade (e.g., LEAN implementation, improved service mix, optimized manufacturing footprint) helped to narrow the gap between Caterpillar’s potential and its realized results, driving material margin expansion and strong share price performance. In our view, the company remains among the highest quality industrials in the market, but its underlying business is cyclical, which can translate to large swings in both performance and investor sentiment over short time periods. Our ability to focus on the long-term, sustainable earnings power of a business (rather than getting distracted by near-term fluctuations) is our most significant edge when investing in cyclical businesses. Due to the inherent volatility in Caterpillar’s end markets and operating performance, we suspect we’ll have a future opportunity to own this high-quality business at a more attractive price once the cycle turns and today’s enthusiasm wears off.”

5. Lowe’s Companies, Inc. (NYSE:LOW)
Number of Hedge Fund Holders: 63

Dividend Yield: 1.56%

Trailing P/E: 21.63

Forward P/E: 16.95

Lowe’s Companies, Inc. (NYSE:LOW) is a home improvement retailer based in North Carolina that ranks fifth on the list of 10 boring stocks that make money. Although the company offers a dividend yield of only nearly 2%, Lowe’s Companies, Inc. (NYSE:LOW) is one of the cyclical stocks that returned to investors consistently through earnings and dividends. The company currently has a payout ratio of 26.78% and an average dividend per share growth rate of 13.68% in the last five years.

On August 18, Lowe’s Companies, Inc. (NYSE:LOW) has gained 10.2% solid earnings report. In the second quarter of 2021, Lowe’s Companies, Inc. (NYSE:LOW) reported an EPS of $4.25, beating estimates by $0.24. The company’s revenue in the second quarter climbed 2% year over year to $27.6 billion and beat revenue estimates by $811.43 million.

On September 17, UBS analyst Michael Lasser maintained a Buy rating on Lowe’s Companies, Inc. (NYSE:LOW) with a price target of $250 per share. According to the analyst, Lowe’s Companies, Inc. (NYSE:LOW) should be able to deliver balanced EPS growth in 2022, as the retailer manages labor expenses and repurchases over $9 billion in stock.

At the end of the second quarter of 2021, 63 hedge funds in the database of Insider Monkey held stakes worth $4.96 billion in Lowe’s Companies, Inc. (NYSE:LOW), up from 61 in the previous quarter worth $5.17 billion.

In the Q2 2021 investor letter of Pershing Square Holdings, Ltd., the fund mentioned Lowe’s Companies, Inc. (NYSE: LOW) and discussed its stance on the firm. Here is what the fund said:

“Since the onset of the COVID-19 pandemic, Lowe’s has experienced a significant acceleration in demand driven by consumers nesting at home, higher home asset utilization, and the reallocation of discretionary spend. In the three years since Marvin Ellison became CEO, the company has executed a multi-year transformation plan to bolster Lowe’s retail fundamentals, reduce structural costs, expand distribution capabilities, and modernize systems and the company’s online capabilities. This transformation has allowed Lowe’s to meet consumers’ needs during this highly elevated period of demand, and positioned the company for continued success and accelerated earnings growth.

In the second quarter, Lowe’s reported U.S. same-store-sales growth of 2.2%. Growth was bolstered by strength from the critical Pro-consumer, where Lowe’s reported growth of 21%, offsetting moderating do-it-yourself (“DIY”) demand. While DIY demand has receded from peak-COVID-19 periods, Pro customer demand has accelerated as consumers engage Pro’s for larger renovation projects.

Notwithstanding the headline growth figure, which is impacted by comparisons to COVID-19-affected months from spring of 2020, demand remains extremely elevated relative to baseline 2019 levels. July same-store sales, the most recent full month for which the company has provided disclosure, were up 31.5% on a two-year basis and management indicated August month-to-date results are substantially similar. More significantly, Lowe’s reported Pro growth of +49% on a two-year basis in Q2, evidence that Lowe’s focus on the Pro is bearing fruit. Share gains with the critical Pro customer will provide a tailwind to growth that should allow Lowe’s to outperform market-level growth going forward.

Even as the robust demand experienced during the height of COVID-19 stabilizes at a new base, the medium and longer-term macro environment remain very attractive for the home improvement sector and Lowe’s in particular. This favorable context for the sector is evidenced by consumers’ enhanced focus and appreciation of the importance of the home, higher home asset utilization, rising home prices, historically low mortgage rates, an aging housing stock, strong consumer balance sheets, and the general lack of new housing inventory.

Against this backdrop, Lowe’s is focused on taking market share and expanding margins. Pro penetration today is still only 25% of revenue as compared to Lowe’s medium-term target of 30% to 35%, providing a runway for continued above-market growth. Management continues to execute against various operational initiatives (Lowe’s “Perpetual Productivity Improvement” program) designed to improve the customer experience while enhancing the company’s margins and long-term earnings power. The company’s long-term outlook implies a significant opportunity for continued margin expansion and earnings appreciation as it executes its business transformation.

Lowe’s currently trades at approximately 17 times forward earnings. Home Depot, its closest competitor, trades at approximately 22 times forward earnings despite Lowe’s superior prospective earnings growth. We find this valuation disparity to be anomalous in light of Lowe’s strong execution and potential for further operational optimization.”

4. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 66

Dividend Yield: 2.26%

Trailing P/E: 26.58

Forward P/E: 24.67

Fast-food giant McDonald’s Corporation (NYSE:MCD) is fourth on the list of 10 boring stocks that make money. McDonald’s Corporation (NYSE:MCD) was founded in Chicago in 1940 and has now expanded to 40,000 locations in 119 countries across the world. In the last 44 years, the iconic restaurant stock has grown its dividends and now pays $5.52 per share to its owners. McDonald’s Corporation (NYSE:MCD) has a payout ratio of 55.71%.

On July 29, Truist analyst Jake Bartlett kept a Buy rating on McDonald’s Corporation (NYSE:MCD) and increased his price target for the stock to $266 from $255 following its solid Q2 earnings.

Shares of McDonald’s Corporation (NYSE:MCD) jumped 0.9% on September 16 as the fast-food chain announced the launch of the temporary selling of its plant-based McPlant sandwich across the Netherlands. Starting September 29, the plant-based McPlant burger will be available at ten restaurants across the United Kingdom and Ireland, followed by 250 additional locations on October 13. Beyond Meat, Inc. (NASDAQ:BYND) is McPlant’s vegan burger patty supplier.

In the second quarter of 2021, McDonald’s Corporation (NYSE:MCD) reported an EPS of $2.37, beating estimates by $0.25. The company’s revenue in the second quarter grew 57% year over year to $5.89 billion and beat revenue estimates by $319.3 million. The stock has gained 15.63%, year to date.

At the end of the second quarter of 2021, 66 hedge funds in the database of Insider Monkey held stakes worth $2.71 billion in McDonald’s Corporation (NYSE:MCD), down from 67 in the previous quarter worth $3.78 billion.

3. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 68

Dividend Yield: 2.37%

Trailing P/E: 25.82

Forward P/E: 22.23

Consumer staple behemoth The Procter & Gamble Company (NYSE:PG) ranks third on the list of 10 boring stocks that make money. The Ohio-based company manufactures and sells branded consumer products under Tide, Downy, Pampers, Olay, Oral-B, Neurobion, and Mr. Clean.

The Procter & Gamble Company (NYSE:PG) has a long history of dividend growth, having to increase its dividends in the last 65 years. The company currently pays an annual dividend of $3.48 per share and has a payout ratio of 58.94%.

On September 7, Morgan Stanley analyst Dara Mohsenian reiterated an Overweight rating on The Procter & Gamble Company (NYSE:PG) and increased his price target for the stock to $161 from $160.

In the second quarter of 2021, The Procter & Gamble Company (NYSE: PG) reported an EPS of $1.13, beating estimates by $0.04. The company’s fourth-quarter revenue grew 7% year over year to $18.95 billion and beat revenue estimates by $569.63 million.

At the end of the second quarter of 2021, 68 hedge funds in the database of Insider Monkey held stakes worth $6.93 billion in The Procter & Gamble Company (NYSE: PG), down from 70 in the previous quarter worth $8.53 billion.

2. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 71

Dividend Yield: 1.57%

Trailing P/E: 39.53

Forward P/E: 21.34

Walmart Inc. (NYSE:WMT) ranks second on the list of 10 boring stocks that make money. The Arkansas-based retailer has increased its dividends over the last 48 years and now pays a $2.20 annual dividend with a payout ratio of 61.24%.

On August 27, Tigress Financial analyst Ivan Feinseth maintained a Neutral rating on Walmart Inc. (NYSE:WMT) and set a price target of $170 per share.

In the second quarter of 2021, Walmart Inc. (NYSE: WMT) reported an EPS of $1.78, beating estimates by $0.21. The company’s second-quarter revenue grew 2.4% year over year to $139.87 billion and beat revenue estimates by $3.87 billion. The stock has gained 2.37% in the past twelve months.

At the end of the second quarter of 2021, 71 hedge funds in the database of Insider Monkey held stakes worth $8.04 billion in Walmart Inc. (NYSE:WMT), up from 58 in the previous quarter worth $5.88 billion.

1. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 88

Dividend Yield: 2.60%

Trailing P/E: 24.66

Forward P/E: 15.73

Topping the list of 10 boring stocks that make money is Johnson & Johnson (NYSE:JNJ). The 135-year-old healthcare company manufactures and sells a wide range of products, including medical devices, pharmaceutical therapeutics, and consumer health products.

Johnson & Johnson (NYSE:JNJ) has increased its dividends in the last 59 years and currently pays its shareholders an annual dividend of $4.24 per share and offers a payout ratio of 61.50%.

In the second quarter of 2021, Johnson & Johnson (NYSE:JNJ) reported an EPS of $2.48, beating estimates by $0.20. The company’s revenue in the second quarter came in at $23.31 billion, up 27.1% year over year, and beat estimates by $802.29 million.

At the end of the second quarter of 2021, 88 hedge funds in the database of Insider Monkey held stakes worth $7.05 billion in Walmart Inc. (NYSE:WMT), up from 81 in the previous quarter worth $6.91 billion.



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