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

Trendingnow

1

Current price of oil as of June 15, 2026

2

Current price of silver as of Monday, June 15, 2026

3

Meet Gwynne Shotwell, the engineer-turned-COO who runs SpaceX in platform heels and is now worth over $2 billion

1

Current price of oil as of June 15, 2026

2

Current price of silver as of Monday, June 15, 2026

3

Meet Gwynne Shotwell, the engineer-turned-COO who runs SpaceX in platform heels and is now worth over $2 billion
FinanceEnd Investor

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

By
Matthew Heimer
Matthew Heimer
Former Executive Editor, Features
Down Arrow Button Icon
By
Matthew Heimer
Matthew Heimer
Former Executive Editor, Features
Down Arrow Button Icon
December 5, 2018, 8:59 AM ET
Add Fortune on Google for similar content.

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
By Matthew HeimerFormer Executive Editor, Features
Instagram iconTwitter icon

Matt Heimer previously oversaw Fortune's longform storytelling in digital and print and was the editorial coordinator of Fortune magazine.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

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

china
AIBook Excerpt
China isn’t trying to beat the U.S. at AI — it’s playing a completely different game
By Joe Ngai and Nick LeungJune 16, 2026
3 minutes ago
U.S. President Donald Trump speaks with reporters while aboard Air Force One en route to Chippewa Falls, Wisconsin on June 5, 2026.
Economynational debt
Tariffs are only generating 25% of the revenue needed to pay interest on national debt—despite pitch that it would be a silver bullet
By Eleanor PringleJune 16, 2026
44 minutes ago
sa
Big TechMarkets
OpenAI’s financials have leaked, showing $21 billion in losses against $13 billion in revenue
By Jim EdwardsJune 16, 2026
1 hour ago
Top CD rates today, June 16, 2026: Lock in up to up to 4.30%
Personal FinanceBanks
Top CD rates today, June 16, 2026: Lock in up to up to 4.30%
By Glen Luke FlanaganJune 16, 2026
2 hours ago
Today’s top high-yield savings rates: Up to 5.00% on June 16, 2026
Personal FinanceSavings accounts
Today’s top high-yield savings rates: Up to 5.00% on June 16, 2026
By Glen Luke FlanaganJune 16, 2026
2 hours ago
REE Corp. chair Nguyen Thi Mai Thanh spent 40 years navigating Vietnam’s economy. Here’s what she thinks comes next
MagazineVietnam
REE Corp. chair Nguyen Thi Mai Thanh spent 40 years navigating Vietnam’s economy. Here’s what she thinks comes next
By Nicholas GordonJune 16, 2026
2 hours ago

Most Popular

Current price of oil as of June 15, 2026
Personal Finance
Current price of oil as of June 15, 2026
By Joseph HostetlerJune 15, 2026
23 hours ago
Current price of silver as of Monday, June 15, 2026
Personal Finance
Current price of silver as of Monday, June 15, 2026
By Joseph HostetlerJune 15, 2026
23 hours ago
Meet Gwynne Shotwell, the engineer-turned-COO who runs SpaceX in platform heels and is now worth over $2 billion
Startups & Venture
Meet Gwynne Shotwell, the engineer-turned-COO who runs SpaceX in platform heels and is now worth over $2 billion
By Eva RoytburgJune 15, 2026
1 day ago
Boomers actually do hold most of the wealth and power. So why do they call it 'whiny' to point that out?
Economy
Boomers actually do hold most of the wealth and power. So why do they call it 'whiny' to point that out?
By Nick LichtenbergJune 14, 2026
2 days ago
Hundreds of Stanford students walked out of their grad ceremony to protest Google CEO’s commencement speech. It wasn’t all about AI
Big Tech
Hundreds of Stanford students walked out of their grad ceremony to protest Google CEO’s commencement speech. It wasn’t all about AI
By Tristan BoveJune 15, 2026
19 hours ago
Trump gets the peace deal he wants and rages against Israel’s Netanyahu: ‘He has no f—ing judgement. I let him know that'
Economy
Trump gets the peace deal he wants and rages against Israel’s Netanyahu: ‘He has no f—ing judgement. I let him know that'
By Jim EdwardsJune 15, 2026
1 day 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.