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5 Low-Volatility Dividend Stocks Yielding Up To 11.1%
May 3, 2025
Dividends over drama, please. Like these five low-volatility dividend stocks that yield 7.2%, on average.
Back in school they taught us that to increase returns, investors had to take on additional risk. This was a financial engineering class at Cornell University, by the way. The prof should have known better, but he didn’t, because he was a researcher and not an actual investor.
It’s a common mistake in academia, and those who try to invest “buy the book.” The book says more beta means more returns. Well, this text is often wrong!
Big dividends and low volatility are a beautiful combination.
Volatility can be measured several ways. I find that “beta” is one of the best ones for regular investors because it’s easy to understand, and because it’s widely available from just about every market data provider.
Beta measures an investment’s volatility against a benchmark. The benchmark (for instance, the S&P 500) will always have a beta of 1. So:
A stock with a beta of 1 moves in line with the market.
If the S&P 500 gained 1%, we’d expect the stock to gain 1%.
A stock with a beta above 1 is more volatile than the market.
If the S&P 500 gained 1%, we’d expect a stock with a beta of 1.5 to gain 1.5%
A stock with a beta below 1 is less volatile than the market.
If the S&P 500 gained 1%, we’d expect a stock with a beta of 0.5 to gain 0.5%
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