Most people nearing retirement can't afford the risk of owning stocks that could decline significantly in the face of an economic downturn and never recover. That's why those nearing retirement should focus on safe stocks that can withstand difficult times. Doing so will enable them to preserve and grow their value over the long term.

Johnson Johnson (NYSE: JNJ) and Coca-Cola (NYSE: KO) are two of the safest stocks in the world. They have elite balance sheets and generate very durable earnings and cash flows, enabling them to pay attractive and growing dividends. That means they should help preserve and increase the wealth of their investors in the future.

Johnson & Johnson is one of the safest companies out there. Its AAA bond rating is tied for best in the world (and higher than the U.S. Government). It implies the healthcare giant has an unparalleled ability to meet its financial obligations. The $450 billion company (by market cap) ended the second quarter with only $17 billion of net debt ($29 billion in cash against $46 billion in debt). 

Continue reading

Source Fool.com