Buy 5 Low-Beta Utility Stocks to Dodge Ongoing Market Volatility

Market Overview - Wall Street's major indexes have reached multiple all-time closing highs recently, but the market has experienced volatility due to economic uncertainties [1][5] - The tech sector, particularly driven by AI optimism, has seen fluctuations, with significant pullbacks in stock prices due to concerns over high valuations [2][6] Economic Concerns - Investors are worried about the health of the economy, particularly with a shrinking labor market and fewer jobs being added [7] - Layoffs surged in October, totaling 153,074, which is a 183% increase sequentially and a 175% increase year-over-year [8] - The ongoing government shutdown has limited access to fresh economic data, contributing to investor uncertainty [9] Defensive Investment Recommendations - In light of market volatility, it is advisable to consider defensive stocks, particularly from the utilities sector, which are characterized by low beta values and high dividend yields [3][4][12] - Five recommended low-beta utility stocks include: - Atmos Energy Corporation (ATO): Expected earnings growth of 6%, beta of 0.73, and a dividend yield of 2.02% [10][11] - American States Water Company (AWR): Expected earnings growth of 4.1%, beta of 0.64, and a dividend yield of 2.72% [13][14] - Consolidated Water Co. Ltd. (CWCO): Expected earnings growth of 0.9%, beta of 0.51, and a dividend yield of 1.61% [15][16] - Entergy Corporation (ETR): Expected earnings growth of 6.9%, beta of 0.63, and a dividend yield of 2.49% [17][18] - Duke Energy Corporation (DUK): Expected earnings growth of 7.3%, beta of 0.45, and a dividend yield of 3.44% [18][19]