Buy 5 Low-Beta High-Yielding Stocks Amid Global Economic Uncertainty
ZACKS·2026-03-03 14:46

Market Overview - Wall Street experienced a strong bull run over the past three years, but 2026 has shown mixed results for U.S. stock markets, with increased volatility observed in February due to several factors [1][4][5][6]. Investment Strategy - Investment in low-beta stocks (beta >0<1) with high dividend yields (>2%) and a favorable Zacks Rank is recommended. These stocks can capture upside potential if markets recover and minimize losses if the downtrend continues [2]. Stock Picks - Five recommended stocks include The Hershey Co. (HSY), BHP Group Ltd. (BHP), Rio Tinto Group (RIO), Atmos Energy Corp. (ATO), and Entergy Corp. (ETR). Each stock carries a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [3]. The Hershey Co. (HSY) - HSY is focused on innovation, supply-chain agility, and commercial execution, particularly in the snacking category. The company has a beta of 0.14 and a current dividend yield of 2.46% [9][12]. - Expected revenue and earnings growth rates for HSY are 4.8% and 29.3%, respectively, with a 16.7% improvement in the earnings estimate over the last 30 days [12]. BHP Group Ltd. (BHP) - BHP reported a 1% dip in iron ore output but a 4% increase in copper production in Q1 of fiscal 2026. The company projects iron ore production of 258-269 million tons for fiscal 2026 [13][14]. - BHP's expected revenue and earnings growth rates are -1.5% and 32.7%, respectively, with a 0.8% improvement in the earnings estimate over the last seven days. The company has a beta of 0.64 and a current dividend yield of 2.91% [15]. Rio Tinto Group (RIO) - RIO is involved in various mining operations globally and has an expected revenue growth rate of 10.7% and an earnings growth rate of 21.8% for the current year. The earnings estimate has improved by 1.4% over the last seven days [16][17]. - RIO has a beta of 0.53 and a current dividend yield of 2.97% [17]. Atmos Energy Corp. (ATO) - ATO benefits from rising natural gas demand and strategic acquisitions, with an expected revenue growth rate of 18.8% and an earnings growth rate of 9% for the current year. The earnings estimate has improved by 0.6% over the last 30 days [18][20]. - ATO has a beta of 0.74 and a current dividend yield of 2.14% [20]. Entergy Corp. (ETR) - ETR plans to invest $41 billion from 2026 to 2029 to upgrade infrastructure and support renewable energy expansion. The company has an expected revenue growth rate of 6.5% and an earnings growth rate of 12.5% for the current year [21][22]. - ETR has a beta of 0.64 and a current dividend yield of 2.39% [22].