10 Safe Stocks to Buy for the Long Term in 2026

Key Takeaways

• Low‑vol stocks fell ~6% as yields rose 55 bps.
• JPMorgan expects yields to fall, boosting low‑vol performance.
• Hedge‑fund‑favored picks include Cincinnati Financial and FactSet.
• Analysts raised CINF price target to $175, BofA to $183.
• FactSet’s subscription model drives growth despite slight target cut.

Pulse Analysis

The low‑volatility segment—comprising consumer staples, healthcare, utilities, insurance and industrials—has been penalized by a 55‑basis‑point rise in 10‑year Treasury yields, pulling the group about 6% lower. JPMorgan’s head of global equity strategy, Mislav Matejka, argues that this price weakness creates an entry point, especially if yields retreat toward the 4%‑5% range. In that environment, low‑vol stocks tend to decouple from broader market swings, delivering steadier price appreciation and reliable dividend streams, a combination prized by income‑focused investors.

Beyond macro dynamics, the article’s methodology leans on hedge‑fund ownership data from Insider Monkey, a proxy for institutional conviction. Hedge funds often gravitate toward companies with robust balance sheets, consistent cash flows and dividend histories—attributes that align with the low‑vol trade. The newsletter’s track record—nearly 500% cumulative return since 2014, outpacing its benchmark by over 300 points—underscores the potency of mimicking top hedge‑fund picks, especially in a market where defensive plays can outshine growth bets.

Two of the highlighted names illustrate the thesis. Cincinnati Financial (CINF) received price‑target lifts to $175 from Piper Sandler and $183 from BofA, reflecting confidence in underwriting strength and premium growth despite short‑term margin pressure. FactSet (FDS), a provider of financial data and analytics, continues to expand its subscription‑based model, supporting earnings even as analysts trimmed its target to $240. Both firms combine solid dividend yields with defensive sector exposure, making them compelling candidates for investors seeking long‑term stability in 2026.