5 Stocks You Don’t Have to Worry About

Stock #1: Abbott Laboratories (ABT)

It is common wisdom that the health care sector offers investors a safe haven, but this downturn has proven to be difficult even there. Many stocks, including Merck (MRK), Pfizer (PFE) and Medtronic (MDT), have been crippled since the market collapsed in October.

One of the few bright spots in the group has been Abbott Laboratories (ABT). At $54, shares trade for slightly less than the peak of just above $60 reached last January. The company makes a ton of money and has consistently delivered double-digit growth.

Based on current estimates, you can buy that growth for a mere 15 times earnings. That may sound expensive in this environment, but is cheap historically. Unlike its competition, ABT has a diversified product line with a stable of promising new products that should drive earnings for years to come.

Own this stock and sleep well. ABT pays nearly 3% in dividends, which means investors get paid to wait for the stock to appreciate. Recession or not, ABT is a winner.

Next: Stock #2 – Johnson & Johnson