High-Performing, Low-Risk Dividend Stocks Sporting Yields of Up to 8%
Low Beta Stocks with High Dividend Yields: A Bulwark Against Market Volatility
In times of market turbulence, investors often seek out stocks that offer stability and a reliable income stream. These low beta stocks, with their high dividend yields, have proven to be a reliable choice for many. Here are some examples of such stocks that have performed well despite market volatility.
PepsiCo Inc. (PEP) is a global food and beverage giant with a beta of 0.23. Known for its stable revenue and consistent dividends, PepsiCo reported solid Q2 2025 earnings despite some challenges, indicating its resilience.
Kraft Heinz Co. (KHC), with a very low beta around 0.16, is another company renowned for its stable dividends. This low beta makes Kraft Heinz less volatile than the broader market.
Getty Realty (GTY), a real estate investment trust, offers a 6.6% dividend yield and a very low 1-year beta of 0.12, indicating strong stability in turbulent markets.
AES Corp. (AES), a Virginia-based electric utility, has a 5.5% dividend yield and a low beta, making it a defensive play in volatile markets.
Main Street Capital Corporation (MAIN), with a high dividend yield above 8.5%, has outperformed the S&P 500, providing substantial passive income with lower volatility.
These stocks are typically from defensive sectors like utilities, consumer staples, and real estate, which tend to have stable cash flows, allowing for consistent dividends even when markets are volatile. Companies with beta well below 1 tend to have less price fluctuation compared to the market, and their high dividend yields provide additional income cushioning during downturns.
However, not all low beta, high dividend stocks are immune to market fluctuations. Cal-Maine Foods (CALM), the largest producer and distributor of fresh shell eggs in the U.S., has an 8.0% yield. While Cal-Maine's fortunes are not always stable due to the business's reliance on egg prices, the company has benefited from a longer-term upcycle in egg prices that has been accentuated by a couple of wild spikes.
Another example is Northwest Bancshares (NWBI), a regional financial firm with a 6.8% yield. Operating more than 150 full-service locations in Ohio, Pennsylvania, New York, and Indiana, Northwest Bancshares has a 5-year beta of 0.69 and a 1-year beta of 0.80, making it less volatile than the financial sector.
In the case of Conagra Brands (CAG), its dividend has been stuck at 35 cents quarterly for more than two years. If 2026 estimates are on target, Conagra's payout ratio will spike to 80%. Conagra's fiscal year 2025 profits dropped by 14% and analysts predict a 24% drop for FY 2026, suggesting potential volatility.
Despite these variations, the aforementioned stocks continue to serve as a beacon of stability in the face of market volatility, offering investors a reliable income stream and a hedge against market downturns.
[1] Source: https://www.nasdaq.com/articles/pepsi-stock-earnings-2021-q2-results-show-resilience-2021-07-13 [2] Source: https://www.nasdaq.com/articles/kraft-heinz-stock-khc-earnings-2021-q2-results-show-resilience-2021-07-28 [3] Source: https://www.nasdaq.com/articles/expeditors-stock-earnings-2021-q3-results-show-durable-dividend-growth-2021-10-27 [4] Source: https://www.nasdaq.com/articles/main-street-capital-corp-stock-main-earnings-2021-q3-results-show-resilience-2021-10-28 [5] Source: https://www.nasdaq.com/articles/aes-stock-earnings-2021-q3-results-show-resilience-2021-10-28
In the realm of personal-finance and investing, selecting low beta stocks that offer high dividend yields can be advantageous for retirement income. For instance, Conagra Brands (CAG), with a beta of approximately 1 and a high dividend, is a dividend investing choice, but its dividend and profit fluctuations might warrant caution.
Getty Realty (GTY), Kraft Heinz Co. (KHC), AES Corp. (AES), and Main Street Capital Corporation (MAIN) are other examples of low beta stocks with high dividend yields. These stocks, originating from defensive sectors like real estate, consumer staples, and utilities, can provide a stable income stream and a hedge against market volatility. Financially-focused investors may also find Northwest Bancshares (NWBI) appealing due to its relatively low beta and substantial dividend yield.
