2023-03-18 09:00:00 ET
We've already experienced two of the biggest bank failures on record this month. That has shaken confidence in the country's banking system. It's increasing concerns that we could be heading for a challenging economic period.
Times like this make it difficult to invest with much conviction since more companies could fail if we experience a significant recession. However, many companies have the financial fortitude to endure tough economic times. Because of that, you can invest in them without any concern. Five high-quality companies you can confidently invest $500 in right now are Johnson & Johnson (NYSE: JNJ) , Microsoft (NASDAQ: MSFT) , NextEra Energy (NYSE: NEE) , Realty Income (NYSE: O) , and WM (NYSE: WM) . They're industry behemoths with fortress-like financial foundations.
Johnson & Johnson has one of the strongest financial profiles in the world. The healthcare behemoth has AAA- rated credit (higher than the U.S. government). It has an extraordinarily strong balance sheet with $24 billion of cash and marketable securities against $40 billion of debt. Meanwhile, its business generates $17 billion of cash flow each year. That gives the company the funding to invest in research and development, repurchase shares, and pay a growing dividend to shareholders. Johnson & Johnson offers a 2.9% dividend yield and has increased its payout for 60 straight years. With healthcare spending continuing to rise, Johnson & Johnson should have no problem continuing to grow value for its investors in the future.
For further details see:
5 Stocks You Can Confidently Invest $500 in Right Now