5 Low-Beta Defensive Stocks to Buy as Fed Adopts Cautious Approach

Group 1: Federal Reserve and Economic Outlook - The Federal Reserve raised its annual inflation outlook to nearly 3% while keeping interest rates unchanged in the range of 4.25-4.5% for the second consecutive time this year [1][4] - The Fed lowered its GDP forecast for the year from 2.1% to 1.7% and increased its inflation gauge expectation to 2.7% from 2.5% [8] Group 2: Investment Recommendations - Given the current market volatility, investing in defensive sectors such as utilities and consumer staples is recommended, with specific stocks like CMS Energy Corporation, NiSource Inc., CenterPoint Energy, Molson Coors Beverage Company, and Carriage Services highlighted as good picks [2] - These recommended stocks are characterized as low-beta stocks with high dividend yields and favorable Zacks Ranks [3] Group 3: Company Profiles - CMS Energy Corporation: Expected earnings growth rate of 7.8% for the current year, Zacks Rank 2, beta of 0.35, and a dividend yield of 2.95% [10] - NiSource Inc.: Expected earnings growth rate of 9.1%, Zacks Rank 2, beta of 0.50, and a dividend yield of 2.88% [12] - CenterPoint Energy, Inc.: Expected earnings growth rate of 8%, Zacks Rank 2, beta of 0.91, and a dividend yield of 2.47% [14] - Molson Coors Beverage Company: Expected earnings growth rate of 6.5%, Zacks Rank 1, beta of 0.81, and a dividend yield of 3.19% [16] - Carriage Services: Expected earnings growth rate of 21.1%, Zacks Rank 1, beta of 0.91, and a dividend yield of 1.17% [18]