Stock MarketDespite the tough challenges that grocery chains have been experiencing over the past year, stock analysts are never discouraged to invest in these types of companies. Added to the constant stiff competition in the grocery business is the constantly increasing gas prices and the current considerable unemployment rate.

Despite all of these factors, stock analysts can still assure the public that it is safe to engage in grocery stocks as a strategy for conservative investment. This is because grocery companies’ earnings, as well as their stock prices, are most often than not predictable. Even though there have been lower growth rates, grocery chains and supermarkets are still considered safe investments that offer dividends.

Below are three grocery chain stocks you might want to consider investing in:

Safeway – Although the chain has recently gotten bad news from Jefferies & Co. lately, the company’s identical-store sales for every quarter still increased, although very slightly. Also, the company’s stock hit $25.37 just last week, making it a new high in 52 weeks. Safeway’s ‘secret weapon’ is its lifestyle stores, which offer a wider range of nutritional information.

Kroger – Currently, Kroger is considered the biggest grocery chain in the market. The company’s stock hit $24.93, also a new high in 52 weeks. This achievement is mainly due to its excellent management team.

Whole Foods – Although the company’s stocks took a hit last week and has gotten a lower yield of 0.6%, Whole Foods is still considered a safe and stable investment. It is still considered a strong competitor in the market, with FreshMarket its closest contender in the field of environmentally friendly and organic products niche.