Passive Investing in 'SWAN' Stocks for Stable Returns

A finance expert at Bloomberg suggests three "passive SWAN" stocks that are not real estate investment trusts (REITs). These stocks are Algonquin Power & Utilities Corp, NextEra Energy Inc, and National Grid plc. They offer stable and predictable returns with relatively low volatility, making them suitable for long-term investments.

As the financial markets continue to evolve, investors are increasingly seeking stable and predictable returns with relatively low volatility. A finance expert at Bloomberg has identified three "passive SWAN" stocks that are not real estate investment trusts (REITs): Algonquin Power & Utilities Corp, NextEra Energy Inc, and National Grid plc. These stocks offer the potential for long-term investments with minimal risk.

Algonquin Power & Utilities Corp
Algonquin Power & Utilities Corp is a Canadian-based company that operates in the renewable energy sector. The company generates revenue through its regulated utility operations in Ontario and Quebec, as well as its renewable energy assets. Algonquin Power & Utilities Corp has a history of providing stable returns and has been identified as a passive SWAN stock due to its low volatility and consistent dividend payments. The company's focus on renewable energy also aligns with the growing demand for clean energy sources, making it a suitable long-term investment.

NextEra Energy Inc
NextEra Energy Inc is one of the largest regulated electric utilities in North America. The company operates through its two primary businesses: Florida Power and Light (FPL) and NextEra Energy Resources. NextEra Energy Inc has a conservative business model, with a diversified portfolio of clean energy assets and long-term power-purchase agreements. The company's strong financial performance, with an average EBITDA margin of 51.8% from 2020 to 2024, makes it an attractive option for investors seeking stable returns. Additionally, NextEra Energy Inc's commitment to rewarding shareholders through consistent dividend increases further enhances its appeal as a long-term investment.

National Grid plc
National Grid plc is a UK-based company that operates in the electricity and gas transmission sectors. The company serves customers in the UK and the Northeast United States. National Grid plc is known for its stable and predictable returns, with a history of providing consistent dividends. The company's regulated business model ensures that it can generate steady revenue, making it a suitable passive SWAN stock. Additionally, National Grid plc's focus on infrastructure and its role in the transition to a low-carbon economy further enhance its appeal as a long-term investment.

Conclusion
Investors seeking stable and predictable returns with relatively low volatility should consider the passive SWAN stocks identified by the Bloomberg finance expert. Algonquin Power & Utilities Corp, NextEra Energy Inc, and National Grid plc offer the potential for long-term investments with minimal risk. These stocks are well-positioned to provide steady returns and align with the growing demand for clean energy and infrastructure investments.

References:
[1] https://ca.finance.yahoo.com/news/alphabet-stock-could-tumble-25-235752840.html
[2] https://www.fool.com/investing/2025/06/07/nextera-energy-built-for-long-term-growth/
[3] https://smartasset.com/investing/what-is-the-safest-investment-with-the-highest-return