7 Low-Beta Dividend Stocks With Sky-High Yields Up To 14%

Navigating Market Uncertainty with High-Yield, Low-Volatility Dividend Stocks

Introduction: Embracing Stability in Turbulent Times

In an era marked by geopolitical tensions, technological disruptions, and economic unpredictability, investors are seeking safer havens for their capital. Enter high-yield, low-beta dividend stocks—offering both stability and income potential. These stocks, with yields ranging from 5% to 14.1%, provide a cushion against market volatility, thanks to their low beta, which measures a stock’s movement relative to the broader market. A low beta indicates reduced volatility, making these stocks ideal for those prioritizing steady returns over market excitement.

Consumer Staples: The Pillar of Stability

The consumer staples sector stands as a beacon of reliability, with companies like Flowers Foods (FLO), ConAgra (CAG), Universal Corp (UVV), and Amcor (AMCR) exemplifying low-beta stability. Flowers Foods, known for brands like Nature’s Own and Wonder Bread, offers a 5% yield with a beta of 0.37, reflecting its steady operations despite recent earnings disappointments. ConAgra, with a 5.6% yield and a beta of 0.27, boasts a diverse portfolio, though its profits have waned. Universal Corp, yielding 6.2%, operates in the tobacco supply chain with a beta of 0.78, though regulatory issues have caused a pause. Amcor, with a 5.0% yield and beta of 0.85, offers packaging solutions, highlighting its status as a Dividend Aristocrat, though growth has stagnated.

Healthcare: A Haven for Income Seekers

Omega Healthcare Investors (OHI) shines in the healthcare sector with a 7.1% yield and a one-year beta of 0.20, illustrating its resilience. Specializing in long-term care facilities, OHI benefits from favorable demographics and a stable lease structure, despite recent stock price adjustments. This sector underscores the appeal of investing in essential services with predictable income streams.

Flexible Payers: Balancing Yield and Volatility

The energy and shipping sectors contribute high-yield, low-beta options with Chord Energy (CHRD) and International Seaways (INSW). Chord Energy, yielding 9.1%, maintains a strong balance sheet and variable dividends, though oil price fluctuations pose risks. International Seaways, with a 14.1% yield, operates a tanker fleet, offering variable dividends dependent on shipping rates. These stocks cater to investors willing to accept some volatility for high returns.

Conclusion: Crafting a Resilient Investment Strategy

Incorporating these high-yield, low-beta stocks into a portfolio offers a strategic approach to managing market risk. While they may not fully shield against broader downturns, their stability provides a solid foundation. As always, a diversified approach, considering each stock’s unique characteristics and challenges, is key to building resilience in uncertain times.

About the Author: Brett Owens

Brett Owens, Chief Investment Strategist at Contrarian Outlook, specializes in income-driven investment strategies. His insights are invaluable for those seeking to navigate the complexities of the financial landscape with confidence.

Disclosure

No positions held in the discussed securities.