Saturday, June 4, 2022

7 Low-Risk Dividend Stocks to Buy for a Choppy Market

For these turbulent times, this recent issue of U.S. News Invested delivers some useful suggestions for investing in a volatile market.  What's more, they're all solid picks that would work quite well even in a steady market.  Enjoy the weekend.  


MAY 24, 2022
U.S. News & World Report

Invested

Advice, rankings and stock market news for investors.
Good morning, investors. What's this? Stocks can rise? It's time to see whether there is a genuine rally brewing after seven losing weeks.

Highlights of today's newsletter include our market insights plus these new articles:

7 Low-Risk Dividend Stocks to Buy for a Choppy Market
7 Best Mid-Cap Stocks to Buy Now
The Complete Berkshire Hathaway Portfolio
Aerial view of mobiel phone cell tower over forested rural area of West Virginia to illustrate lack of broadband internet service (Aerial view of mobiel phone cell tower over forested rural area of West Virginia to illustrate lack of broadband interne
The S&P 500 index is down 18.1% through May 20. And with futures contracts on the federal funds rate pricing in an 88% chance of a 50-basis-point hike in June and inflation figures hitting 8.3% year over year in April, the markets are expected to remain highly volatile.

Investors looking to pivot their equity holdings to a more defensive allocation during these turbulent conditions can consider an allocation to low-beta dividend stocks. Beta is a measure of the volatility of a stock compared to the market. Stocks with a beta of less than 1 are considered less risky and have shown a lower correlation with the market. Here's are seven low-volatility dividend stocks stocks to buy with yields above 3%:

Verizon Communications Inc. (ticker: VZ). The U.S. telecommunications space is a highly regulated industry dominated by a few select mega-cap companies. These companies have strong economic moats and widespread customer bases, with highly diversified product and service lines. This translates into strong cash flows and earnings, which are generally distributed back to shareholders in the form of dividends. As one of the largest players, Verizon exemplifies these traits well.
Dividend yield: 5.2%
Beta: 0.41

AT&T Inc. (T). Verizon's main competitor, AT&T has a long and storied history. The company was founded in 1876 by none other than the inventor of the telephone, Alexander Graham Bell. AT&T has grown to become a multinational telecommunications juggernaut. Recently, AT&T divested WarnerMedia, its entertainment division, via a merger with cable TV company Discovery, forming Warner Bros. Discovery Inc. (WBD). In the first quarter, AT&T reported strong year-over-year customer growth, adding more than 691,000 postpaid phone customers.
Dividend yield: 5.4%
Beta: 0.74


7 low-risk dividend stocks to buy for a choppy market:

  • Verizon Communications Inc. (VZ)
  • AT&T Inc. (T)
  • BCE Inc. (BCE)
  • Pfizer Inc. (PFE)
  • Gilead Sciences Inc. (GILD)
  • General Mills Inc. (GIS)
  • Kellogg Co. (K)


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