Increase Your Income by 3 to 5 Times with These 5 Reliable Dividend Stocks

In the world of investing, there is always a level of uncertainty and risk involved. The fear of a significant pullback in the S&P 500 or a market crash can keep investors up at night. However, there are strategies and portfolios that can help mitigate these risks and provide a sense of stability even in turbulent times. One such strategy is investing in low-beta dividend stocks, which offer a combination of steady income and lower volatility compared to the broader market.

Beta is a measure of an investment’s volatility in relation to a benchmark, such as the S&P 500. A stock with a beta of 1 moves in line with the market, while a stock with a beta of less than 1 is less volatile. In times of market downturns, low-beta stocks tend to hold up better and provide a level of protection for investors’ portfolios.

One example of a low-beta dividend stock is Amcor (AMCR), a company in the materials sector that specializes in packaging for consumer and healthcare products. Despite being in a cyclical industry, Amcor has shown resilience and stability, with a dividend yield near 5% and a low beta of 0.87 over five years. This combination of income and low volatility makes it an attractive option for investors looking for defensive stocks.

Another example is Northwest Bancshares (NWBI), a regional financial company that operates in Ohio, Pennsylvania, Indiana, and New York. NWBI has a diversified loan portfolio and strong capitalization, making it a defensive play in the financial sector. With a dividend yield approaching 6% and a one-year beta of 0.38, NWBI offers a balance of income and stability for investors.

Getty Realty (GTY) is a real estate investment trust (REIT) that owns retail properties across the United States. Despite being in a sector sensitive to interest rates, Getty has a track record of consistent dividend growth and a one-year beta of 0.40, indicating lower volatility compared to the market. This stability, combined with a dividend yield of 6%, makes Getty a reliable income generator for investors.

Universal Corp. (UVV) is a high-yield dividend stock in the tobacco industry that supplies tobacco products to manufacturers. With a beta of 0.47 over the past year, Universal Corp. offers low volatility but lacks significant growth potential. However, for investors seeking steady income and stability, UVV may still be a suitable option.

Lastly, Omega Healthcare Investors (OHI) is a REIT that focuses on providing financing to skilled nursing and assisted living facilities. Despite facing challenges during the COVID-19 pandemic, OHI has rebounded and offers a dividend yield of 7.3%. With a one-year beta of 0.58, OHI provides a level of stability for income-focused investors.

In conclusion, investing in low-beta dividend stocks can provide a sense of security and stability in uncertain market conditions. By focusing on companies with strong fundamentals, consistent dividend payouts, and low volatility, investors can build a resilient portfolio that can weather market downturns and provide a reliable income stream.