Top 5 Steady Stocks with High Dividend Yields for Portfolio Protection

As U.S. stock markets face early fluctuations in 2024 following a 2023 rally, investors are pivoting their attention towards more stable investments. The much-talked-about technology stock momentum has cooled amidst yield rises in 10-Year U.S. Treasury Notes, currently trading above 4%. This climate, underscored by uncertainty over Federal Reserve's interest rate cuts, has marketers hedging their bets on solid, low-beta stocks.

Navigating Market Volatility

Amid the debate on the timing of rate cuts by the Fed, and considering the month-over-month increase in both consumer price index (CPI) and core CPI (excluding food and energy), investors are facing a volatile trading environment. Anxieties are further heightened by the CME FedWatch tool, which only forecasts a slim chance of an interest rate reduction in the upcoming March FOMC meeting.

The Appeal of Low-Beta High-Dividend Stocks

In such uncertain times, gravitating towards low-beta stocks that offer high dividend yields appears to be a prudent move. These stocks not only provide the promise of steady income through dividends but also have the advantage of being less influenced by wide market swings. A favorable Zacks Rank for these stocks also hints at potential growth if the market recoils.

Five Low-Beta Picks with Strong Dividends

We've identified five promising stocks with a beta greater than 0 but less than 1, each displaying a compelling dividend yield. These companies are expected to carry forward their growth momentum into 2024 and have had positive earnings estimate revisions in the past month. These stocks are Booz Allen Hamilton (BAH), Tyson Foods (TSN), AXIS Capital Holdings (AXS), First Financial Bankshares (FFIN), and Organon & Co. (OGN).

BAH's strategic initiatives in technology areas such as AI and modern digital platforms, TSN's international market expansions and productivity measures, AXS's focus on specialty insurance and prudent resource deployment, FFIN's broad banking services in Texas, and OGN's commitment to addressing women's health globally, all combine to make these stocks viable havens in a time of market unrest.

With the promise of revenue and earnings growth in the fiscal year 2024, these five stocks not only offer low volatility but also provide investors with attractive dividend income, helping to safeguard their portfolios during uncertain market phases.

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