7 ‘Stability Stocks’ With Low Volatility, High Yields

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7 ‘Stability Stocks’ With Low Volatility, High Yields

Worried about a market pullback?

Let’s discuss seven sturdy dividends with yields up to 8%. These are “low beta” stocks which means they stand tall when the market sinks. Low beta stocks may still go down, but they tend to regress less than average.

And generally speaking, the lower the beta, the more cushion to the downside. The lower a stock’s beta, the less volatile (the less it moves) compared to a benchmark (like the S&P 500). It’s really easy:

Beta more than 1 = more volatile than the market.

Beta less than 1 = less volatile than the market.

Then we want to pair low beta with high dividend yields.… Read more

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Dividend Payers Up To 9% That Don’t Crumble Under Pressure

Election. Recession. No landing. Social unrest. Election contest.

Low beta, anyone?

Today we’ll talk calm in a sea of manic. A six-pack of tranquil dividend payers yielding up to 8.9%.

How do we know they’re tranquil? Beta, baby.

A stock with a beta above 1 is considered more volatile than “the market.”

A stock with a beta below 1 is considered less volatile.

Let’s say a stock had a beta of 0.5. This means it’s half as volatile as the market. If a 30% bear market swipes, this safety stock only loses 15%.

It’s an inexact science—I wouldn’t build projections per se around current beta.… Read more

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The Pros Say “No” to These Dividends Up To 13%. I Say …

The haters are out in full force.

Wall Street “pros” are downright disgusted with high-yield stocks. Here at Contrarian Outlook, this pessimism warms our heart. With no analysts left to slap a Sell rating on these names, the future is filled with upgrades.

By the way: Consensus Buy calls are a dime a dozen. Analysts notoriously lean, ahem, optimistic, so there’s nothing special about a stock that’s dripping in positive ratings. But if a stock is stuffed with Sells, that’s rare, and I take notice.

How unusual are Sell calls? Just one S&P 500 stock is rated a consensus Sell right now.… Read more

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This 5-Stock Portfolio Pays Up to 7.3%, is Built for Disaster

Worried about a serious pullback in the S&P 500?

That something is going to go a bit haywire here in America, or overseas, and send stocks swooning?

If so, this 5-stock portfolio is for you. It yields up to 7.3% and it is built to withstand Armageddon.

No, really. These “low beta” payers can really lower our blood pressure. (Hold my beetroot juice!)

We blunt the bears with big dividends and small betas. Beta is a measure of an investment’s volatility against a benchmark.

If a stock has a beta of 1, it means it’s every bit as volatile as “the market.”… Read more

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Your Safety Plan Should Start With These ‘Low Vol’ Yields up to 6.3%

With a recession likely at some point, we’re going to focus our attention today on recession-resistant dividend stocks.

With all the talk of a “soft landing” or even “no landing”—the nightmare inflation scenario in which the economy keeps humming—we contrarians are going to take a step back. And respect the yield curve.

In a normal economy, longer-dated bonds would pay more than shorter-dated issues. After all, more time, more things that can go wrong. Which is why you and I are smartly prepping for a recession, regardless of what the latest financial narrative is.

The 10-year Treasury bond has paid less than its 2-year cousin for many months and counting.… Read more

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A Downturn in 2023? Maybe Not for These Low-Vol Plays

We are heading into the most telegraphed recession in American history. Federal Reserve Chair Jay Powell said it himself last month:

“As rates go higher, it’s hard to see a soft landing.”

Gee Jay, no kidding. Your Fed is squeezing us directly into a slowdown with these short-term rate hikes and balance sheet drawdowns.

Now I’m not saying it’s the wrong move, Jay. You printed a lot of money in 2020—so much that we fell way behind the inflation curve in 2021. Economic indicators and price numbers are still running hot.

So I’m not surprised to see your feet on the breaks for most of the year.… Read more

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Taper Tantrum Dividend Stocks Yielding Up to 12.9%

When the taper tantrum finally hits, these five dividends—up to 12.9%—are likely to directly benefit.

Right now, their profits are being artificially suppressed by the Fed. Once this constraint is lifted, their bottom lines are going to boom.

The Fed is currently buying $80 billion in government bonds every month. Yes, Chairman Jay Powell wants to kick this addiction, but thus far he can only bring himself to “think about it.” Eventually, he will try to cut back on this bad habit. This opens the door for us laypeople to profit and bank some big payouts.

Treasury yields are based on supply and demand.… Read more

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