Volatility Is Back: 3 Stocks To Cushion the S&P 500's Swings

Market Overview - The market is experiencing regime changes, leading to increased volatility, prompting investors to shift towards more defensive stocks [1][2] - Consumer staples are highlighted as attractive options due to their stable business models and low volatility, making them appealing during market sell-offs [2] Realty Income Co. (NYSE: O) - Realty Income is noted for its low volatility profile and income potential, offering a dividend payout of up to $3.21 per share, translating to a yield of 5.68% [4][5] - The stock is currently trading at 86% of its 52-week high, with analysts projecting a price target of $66 per share, indicating an upside of 18% [6] - The company is characterized as a stable investment, appealing to those seeking consistent income [4][5] Altria Group Inc. (NYSE: MO) - Altria Group has seen a 17.4% increase in holdings by the Royal Bank of Canada, reflecting investor confidence amid market volatility [7] - The company offers a dividend payout of $4.08 per share, resulting in an annualized yield of up to 7.44%, which is attractive for income-focused investors [8][9] - Altria's stock is trading at 95% of its 52-week high, indicating strong performance in a defensive investment strategy [9] PepsiCo Inc. (NASDAQ: PEP) - PepsiCo is currently trading at 83% of its 52-week high, with a forward P/E ratio of 18.3, which is at the lower end of its historical valuation range [11][12] - Analysts from Citigroup have reiterated a buy rating with a price target of $170 per share, suggesting a potential upside of 12.2% [13][14] - The stock has experienced a significant reduction in short interest, indicating a shift in market sentiment towards a more bullish outlook [13]