If you've been investing for a significant period of time, you've probably heard a stock described as a “high beta" or “low beta" stock. This term is essential for investors who want to determine a stock's volatility.
The role of beta is to explain the volatility of a particular stock versus an index, such as the S&P 500. A high beta stock means a stock tends to be more volatile than its correlating index. A low beta stock, therefore, is less volatile than its correlating index. Neither a high beta nor low beta stock predicts higher gains or smaller losses, only how a stock's performance may deviate from a market average.
Nevertheless, low-beta stocks are generally considered to be “safe" stocks because they are unlikely to experience the stomach-churning price movement of a high-beta stock.
In this special presentation, we highlight seven low-beta stocks that investors can buy with expectations of safe and sound performance, including, in most cases, a high-yield dividend that helps to boost your total return.
Click the "Continue to Slide #1" button to view the first company.
