• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Exclusive

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

FinanceEnd Investor

Doing Well By Doing Good: 5 Stocks to Buy for 2019

Matthew Heimer
By
Matthew Heimer
Matthew Heimer
Executive Editor, Features
Down Arrow Button Icon
Matthew Heimer
By
Matthew Heimer
Matthew Heimer
Executive Editor, Features
Down Arrow Button Icon
December 5, 2018, 8:59 AM ET

For a long time, the conventional wisdom among investors was that “nice guy” businesses finished last in the stock market. Companies that tried to be socially and environmentally responsible, the critics said, would have to sacrifice some of their profits, revenues, and shareholder returns in the process.

But today there’s a growing body of evidence to suggest that stocks of companies that meet high standards for environmental, social and governance factors (ESG) are actually likely to outperform the market. In other words: Investors can do well by backing companies that do good.

Data from asset management startup Arabesque, for example, found that S&P 500 companies that ranked in the top quintile for ESG factors outperformed those in the bottom quintile by more than 25 percentage points between the beginning of 2014 and the end of June 2018, while their stock prices were less volatile. Other research, from organizations including consulting giant McKinsey & Co. and advocacy group JUST Capital, has reached similar conclusions.

The catch, for investors, is that such results are both aggregated and backward-looking: They don’t help you predict how any individual company will fare next year, or for the next five years. And no amount of socially responsible behavior can compensate for a flawed business strategy or an industry in free-fall.

With that in mind, Fortune looked at a range of companies to find examples that combine praiseworthy business goals with promising financial outlooks. Here are five stocks that could help investors do well while doing good over the next year.

(For more investing advice, read “The 30 Best Stocks to Buy for 2019.“)

Abbott Laboratories

As a diversified health care company, Abbott Laboratories (ABT) is insulated to a certain extent from the boom-and-bust cycles associated with pure-play pharmaceutical companies. Analysts expect particularly good things in the near future from the Chicago-based company’s medical-device division. Products like heart valve replacement and repair devices and wearable glucose sensors for diabetes should keep the company’s overall revenues growing steadily for the next several years. But the company is also making a valuable social impact through its $7 billion nutrition business. Working with the nonprofit TechnoServe and Indian dairy firm Prabhat, for example, Abbott has been training Indian farmers in better milk production techniques. Abbott reaps the rewards in the form of higher-nutrient milk for its own products; the farmers benefit as their practices improve and their incomes grow and stabilize.

Merck

This Kenilworth, N.J., pharmaceutical giant has been buoyed over the past year in particular by the performance of Keytruda, its blockbuster immunotherapy treatment. That treatment’s effectiveness in fighting a growing number of different cancers has boosted investors’ confidence that it will remain a high earner for Merck (MRK) for a long time to come. But Merck has also shown a continued commitment to vaccines—a far less profitable business with an incalculably important impact on global health. V920, a vaccine that Merck created in collaboration with Canada’s public health agency and NewLink Genetics, has been credited with foiling two Ebola outbreaks this year alone in the Democratic Republic of the Congo. (Read “Deploying the Profit Motive to Beat Ebola.”)

Texas Instruments

Texas Instruments (TXN) receives one of the highest rankings from Arabesque’s S-Ray scoring tool, a sign of its high performance on a number of ESG metrics ranging from environmentally friendliness in its manufacturing to good corporate governance. Like many other chipmakers, Texas Instruments has seen its stock tumble recently as investors worry about the impact of trade tensions and a slowdown in Chinese demand. But the company’s dominance in analog semiconductors—widely used in such devices as temperature, speed, and sound sensors—and its expansive customer base outside China have kept its fans bullish. Texas Instruments has one of the industry’s strongest balance sheets, and returns virtually all of its free cash flow to shareholders; its dividend yield currently stands at 3.1%.

Walmart

As the world’s largest company by revenue, mega-retailer Walmart has an outsize role in reducing solid wastes and greenhouse gas emissions. The Bentonville, Ark., company has recently made major strides on both fronts. In 2017, it reported, Walmart (WMT) successfully diverted about 78% of its waste away from landfills thanks to recycling and other measures. It’s now working to slash carbon emissions through Project Gigaton, an effort to convert its suppliers to using more recycled content in packaging and substituting renewable energy for fossil fuels. At the same time, Walmart’s efforts to broaden its e-commerce offerings, most notably through its 2016 acquisition of Jet.com, are paying off and earning plaudits from investors.

Xylem

Water scarcity has become a major threat to the global economy—not to mention one of the most alarming consequences of climate change. Xylem (XYL), headquartered in Rye Brook, N.Y., specializes in water infrastructure, with an emphasis on treating wastewater and eliminating leaks that can siphon off as much as 60% of water supplies in developing markets. As Lori Keith of Parnassus Investments recently told Fortune, even advanced nations like the U.S. have significant infrastructure-improvement needs. Given Xylem’s dominant share of the market, Keith says, “I continue to see a long runway for profitable growth.”

About the Author
Matthew Heimer
By Matthew HeimerExecutive Editor, Features
Instagram iconTwitter icon

Matt Heimer oversees Fortune's longform storytelling in digital and print and is the editorial coordinator of Fortune magazine. He is also a co-chair of the Fortune Global Forum and the lead editor of Fortune's annual Change the World list.

See full bioRight Arrow Button Icon

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

charlie
CommentarySoftware
Anaplan CEO: AI isn’t eating software. It’s sorting it
By Charlie GottdienerMay 18, 2026
48 minutes ago
Wallet makers are the quiet backbone of the crypto industry. Now they want to be banks
NewslettersFortune Crypto
Wallet makers are the quiet backbone of the crypto industry. Now they want to be banks
By Jeff John RobertsMay 18, 2026
1 hour ago
President Donald Trump speaks in front of the American flag to the press as he departs the White House on May 12, 2026 in Washington, DC.
EconomyPolitics
President Trump says the White House’s dealmaking era ends with him: ‘It’s not going to happen again’
By Eleanor PringleMay 18, 2026
2 hours ago
The top high-yield savings rates: Up to 5.00% on May 18, 2026
Personal FinanceSavings accounts
The top high-yield savings rates: Up to 5.00% on May 18, 2026
By Glen Luke FlanaganMay 18, 2026
2 hours ago
After AI stole his clients, one Big Tech ghostwriter is using AI to get them back
AIAutomation
After AI stole his clients, one Big Tech ghostwriter is using AI to get them back
By Sage LazzaroMay 18, 2026
4 hours ago
Mortgage rates today, May 18, 2026
Personal Financemortgages
Mortgage rates today, May 18, 2026
By Glen Luke FlanaganMay 18, 2026
5 hours ago

Most Popular

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
AI
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
By Jake AngeloMay 16, 2026
2 days ago
The top foreign holders of U.S. debt may soon dump Treasury bonds and bring their money back home, potentially spiking borrowing costs
Economy
The top foreign holders of U.S. debt may soon dump Treasury bonds and bring their money back home, potentially spiking borrowing costs
By Jason MaMay 17, 2026
19 hours ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
6 days ago
'No one was coming to save me': How Reese Witherspoon built a $900 million company from a problem Hollywood wouldn't fix
Success
'No one was coming to save me': How Reese Witherspoon built a $900 million company from a problem Hollywood wouldn't fix
By Sydney LakeMay 17, 2026
1 day ago
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
Innovation
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
By Jason MaMay 16, 2026
2 days ago
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
Politics
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
By Jason MaMay 16, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.