8 Safe Stocks to Buy Now

8 Safe Stocks to Buy Now

General Dynamics (symbol GD)

The economic slowdown has yet to be reflected in the performance of General Dynamics, which gets about two-thirds of its revenues from the U.S. government. The world's sixth-largest defense contractor, which makes everything from tanks and submarines to electronics for the military and intelligence services, continues to see its backlog of business grow. For the quarter that ended September 30, the backlog was $60.5 billion, up from $55 billion the previous quarter. Better yet, profit margins rose in each of GD's four business segments.

Google (GOOG)

Once everybody's favorite glamour stock, Google is now available at half-price. That looks like a pretty good deal. Down from $742 in late 2007, you can buy shares of the leading Internet-search and advertising firm for just 14 times expected 2009 earnings of $22.64 per share.

Johnson & Johnson (JNJ)

Consumer-products firms are a natural refuge in turbulent times. That's why Johnson & Johnson is the right pick now. No matter how bad things get, people will still buy household essentials, such as Band-Aids, Listerine and Rolaids, and that means a steady stream of profits for the company, based in New Brunswick, N.J.

American Tower (AMT)

Fierce competition means that wireless-phone carriers will continue building their communications networks in any economic environment, and that's good news for American Tower. The Boston company owns or operates more than 23,000 wireless-phone and broadcast-communications towers. Major carriers, such as AT&T and Verizon, are willing to sign long-term contracts with built-in annual price increases to lease space on these towers so that they can provide voice and data services for their customers. Morningstar analyst Imari Love estimates that American Tower has more than six years' worth of revenue already locked into these noncancellable contracts.

Oracle (ORCL)

The company is the leading provider of database software, an essential underpinning for virtually every type of corporate software application. Oracle's 43% market share is more than double that of IBM, its nearest competitor. Working from that stronghold, the Silicon Valley-based firm has spent $28 billion over the past four years successfully extending its reach into enterprise software, programs that support or streamline business operations.

Accenture (ACN)

Although Accenture is not immune to a global economic downturn, it should survive relatively unscathed. The company, which is headquartered in Bermuda, provides management- and technology-consulting services to businesses and governments around the world. Plus, it provides services, such as computer-network management, customer help desks and back-office services, that businesses prefer to farm out.

Thermo Fisher Scientific (TMO)

This is a one-stop shop that equips research laboratories with everything from high-end analytical instruments to everyday supplies, such as chemicals and microscope slides. Based in Waltham, Mass., the company derives about half of its annual revenues from lab supplies that need to be restocked -- a steady business that's not particularly economically sensitive. That should cushion any drop-off from sales of costlier scientific instruments (31% of revenues). Customers range from pharmaceutical firms and hospitals to research labs and government agencies. (Other revenues come from sales of software and services.)

Automatic Date Processing (ADP)

Even though the near-term U.S. employment picture looks shaky, the business of processing corporate payrolls remains a good one. ADP boasts long-term contracts and high repeat business, and it gets to keep the interest it earns on billions of dollars in taxes deducted from workers' paychecks that are later turned over to the government. This profitable business model means that the Roseland, N.J., company generates a lot of cash. During the fiscal year that ended last June, ADP rewarded shareholders with dividends and buybacks worth $2 billion.