5 High-Yield Low-Beta Stocks to Protect Your Portfolio in a Market Downturn
Are you concerned about potential market volatility and looking for a safe haven for your investments? Look no further. This 5-stock portfolio offers a yield of up to 7.3% and is designed to weather any storm, even Armageddon.
In times of market turmoil, low beta stocks can provide a much-needed cushion. Beta measures an investment’s volatility compared to a benchmark. A stock with a beta of 1 moves in line with the market, while a stock with a beta of 0.5 is only half as volatile. This means if the market drops 10%, you would only be down 5%.
These low-beta dividend stocks not only reduce downside risk but also offer a substantial income and potential for growth when the market rebounds. Let’s take a closer look at five low-beta stocks that are currently outperforming the market.
1. Amcor (AMCR, 4.8% yield): Despite being in a cyclical sector, Amcor has defensive characteristics that make it stand out. With a nearly 5% yield, a history of dividend growth, and low betas, Amcor is a solid choice for stability in your portfolio.
2. Northwest Bancshares (NWBI, 5.7% yield): This regional financial company has a strong balance sheet and lower-risk loan profile, making it a defensive play in the financial sector. With low betas and the potential for upside, NWBI is a reliable choice for uncertain times.
3. Getty Realty (GTY, 6.0% yield): As a real estate investment trust with a diverse tenant mix, Getty Realty offers stability and a growing income stream. Despite potential threats from interest rates and changing consumer habits, Getty has a track record of dividend growth and low volatility.
4. Universal Corporation (UVV, 6.1% yield): Universal Corp. is a high-yielding stock in the tobacco industry that supplies tobacco products rather than producing them. With diversified business segments and low betas, Universal Corp. offers stability and income potential for investors.
While these stocks may not offer explosive growth, they provide a safe haven for your investments in uncertain times. By adding low-beta stocks to your portfolio, you can protect your wealth and generate steady income, even in the most challenging market conditions. Omega Healthcare Investors (NYSE: OHI) Review: Is Safety Worth This Much Underperformance?
Omega Healthcare Investors (OHI) is a triple-net REIT with a 7.3% yield that focuses on elderly Americans. While the pandemic hit senior housing hard, OHI has shown resilience with increasing occupancy and rates. However, the recent surge in shares is largely due to interest rate expectations.
Earning a reliable 8%+ in retirement is possible with dividend-paying investments like OHI. With a million-dollar portfolio, you could collect $6,600 in dividends every month. These “8%+ Monthly Payer Portfolio” picks not only provide income but also stability and growth potential.
In conclusion, investing in dividend-paying stocks like OHI can help secure a stable income in retirement. By focusing on reliable investments with high yields, you can build a portfolio that aligns with your financial goals and provides peace of mind for your golden years.