7 Low-Beta Dividend Stocks With Sky-High Yields Up To 14%

Core Viewpoint - The article discusses seven low-beta dividend stocks that yield between 5% and 14.1%, emphasizing their stability and lower volatility compared to the overall market [1][2][4]. Group 1: Low-Beta Dividend Stocks Overview - Low-beta stocks are characterized by their lower volatility, with betas below one, indicating they move less than the overall market [2][3]. - The focus is on dividend stocks that provide consistent payouts rather than dramatic price movements [2][4]. Group 2: Consumer Staples - Flowers Foods (FLO) has a yield of 5.0% and a five-year beta of 0.37, indicating it is less volatile than the market, although it faced challenges in 2023 due to legal settlements [5][6]. - ConAgra (CAG) offers a 5.6% yield with a five-year beta of 0.27, but has seen declining profits over the past three years, with 2024's net income significantly lower than in 2021 [8][10]. Group 3: Niche Dividend Stocks - Universal Corp. (UVV) operates in the tobacco supply sector, with one- and five-year betas of 0.14 and 0.78, respectively, indicating low volatility [12][14]. - The company is currently under scrutiny due to an internal investigation, which has delayed its quarterly earnings report [15]. Group 4: Healthcare Sector - Omega Healthcare Investors (OHI) has a yield of 7.1% and a one-year beta of 0.20, reflecting its stability in the healthcare real estate sector [20][21]. - The stock has recently pulled back amid broader real estate declines, but its valuation has improved, trading at 13 times next year's FFO estimates [22]. Group 5: Energy Sector - Chord Energy (CHRD) yields 9.1% with one- and five-year betas of 0.74 and 0.84, respectively, despite experiencing a significant drop in share price over the past year [23][24]. - The company maintains a strong balance sheet and generates substantial free cash flow, with a return of capital set at 75% of FCF [24][25]. Group 6: Shipping Sector - International Seaways (INSW) boasts a high yield of 14.1% with one- and five-year betas of -0.11 and 0.14, respectively, although its dividend is highly variable and dependent on business conditions [26][27]. - The stock's fundamentals are solid, with low capital expenditures and a low cash-flow breakeven, making it attractive if shipping rates rebound [29].