subject: The Most Stable Sectors In The Stock Market [print this page] Stocks describe the ownership position that one acquires after buying shares in a company. This ownership entitles one to a claim of the assets and profits of the company. A certificate is usually given as proof of ownership of shares. A shareholder earns dividends when the company makes profits or when share prices go up. A shareholder, however, does not get involved in the active running of the company but, instead only gets to use his vote during the annual meetings. Some sectors are more stable than others in the stock market. Reasons for this include; existing cash and cash flow, debt levels, records of paying dividends and long term growth potential.
Utility stocks are one of the most stable and low risk of the various alternatives. An example of this is companies with nuclear assets. They are the companies that are involved in producing renewable energy solutions and in developing environmental friendly ways of producing energy. However, they require an investor with a lot of patience because, they take long before reaping profits. Other examples of utility stocks are those involved in the generation of electricity and production of gas.This is because things like nuclear plants take years to construct before work can even begin in them. The resulting benefits are however worth the wait.
The Unites States is a major exporter of agricultural products. Due to the high demand of food at home and worldwide, it makes it a very stable stock sector to invest in. This is because of the repeat business nature of these companies. They specialize in producing things that people will always buy despite the economic environment. The industries in this sector include; fruits, grains, vegetables, pork, beef, poultry, dairy products and fish. Another stable sector in the stock market is manufacturing. Due to innovations that seem to come up every day, companies in this sector continuously experience growth. Industries in this sector include motor vehicles, mining, electronics, steel, petroleum among others.
The finance stock sector is also included in this list. This is due to the nature of companies that are listed in the stock exchange market. They are usually well established and economically stable companies. The United States is also the world leading importer. Companies involved in international trade are therefore considered very stable sectors. This is because, they keep other economies moving. Examples of other stable sectors include; recreational vehicles, farm machinery, equipment and supplies used during photography and farm chemicals.
