{"id":1642,"date":"2025-02-11T04:41:59","date_gmt":"2025-02-11T09:41:59","guid":{"rendered":"https:\/\/sharewatch.com\/wp\/2025\/02\/11\/7-wonderfully-sleepy-dividend-stocks-yielding-up-to-14-1\/"},"modified":"2025-02-11T04:41:59","modified_gmt":"2025-02-11T09:41:59","slug":"7-wonderfully-sleepy-dividend-stocks-yielding-up-to-14-1","status":"publish","type":"post","link":"https:\/\/sharewatch.com\/wp\/2025\/02\/11\/7-wonderfully-sleepy-dividend-stocks-yielding-up-to-14-1\/","title":{"rendered":"7 Wonderfully-Sleepy Dividend Stocks Yielding Up to 14.1%"},"content":{"rendered":"
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Worried about the next round of tariffs? Tech disruption from DeepSeek? The geopolitical landscape?<\/p>\n

All of the above?<\/p>\n

Fret not my contrarian friend\u2014here are seven wonderfully-sleepy dividend stocks. They yield between 5% and 14.1% and we are discussing them today because all seven boast low betas.<\/p>\n

This means these shares move less than the overall market. An admirable quality when it comes to a dividend stock because we\u2019re not here for the price drama, we\u2019re here for the payout.<\/p>\n

Beta represents an investment\u2019s volatility against a benchmark. Stock beta is typically benchmarked against the S&P 500, aka \u201cthe market.\u201d Beta is based around the number 1, so a stock with a beta equal to 1 moves with the market. If the S&P 500 is down 1%, we would expect this stock to be down one percent.<\/p>\n

A beta above 1 is more volatile than the market. Think Bitcoin.<\/p>\n

Our focus today is stocks with betas below one. If the S&P is down 1%, we expect these positions to be down 0.5% or 0.25% or so.<\/p>\n

Betas are based on historical price movements and are not future guarantees. But directionally they can be helpful to know. We can reasonably expect low-beta stocks to deliver smaller swings in price action. We can easily see this dynamic at work when comparing a traditional emerging-market fund (very volatile) versus a minimum-volatility EM fund:<\/p>\n

Lower Volatility Means a Much Smoother Ride<\/strong><\/p>\n

That said, beta is not the end of our research. We also consider the fundamentals driving the profits (and payouts) of tomorrow. Let\u2019s get into these seven low betas, starting with our \u201clowest\u201d yield of 5% and working our way all the way up to 14.1%. Let\u2019s start with aisle five.<\/p>\n

Consumer Staples<\/strong><\/p>\n

Baking specialist Flowers Foods (FLO, 5.0% yield)<\/strong>, the company behind bread brands such as Nature\u2019s Own, Dave\u2019s Killer Bread, Wonder and Sunbeam, as well as snack brands including Tastykake and Mrs. Freshley\u2019s.<\/p>\n

FLO\u2019s business is predictable. Revenues have been in a larger uptrend for years; same goes for profits, though legal settlements tied to employee classifications took a big chunk out of the bottom line in 2023. And that consistency has led to a longer-term (five-year) beta of just 0.37, or roughly only a third as volatile as the market, while its one-year beta of negative 0.11 reflects a truly slow-moving stock that hasn\u2019t been aligned with the market. Given the year the broader market has had, that\u2019s not great.<\/p>\n

Flowers Marches to the Beat of Its Own Drum. But It\u2019s a Lousy Beat.<\/strong><\/p>\n

We could excuse some of underperformance as investors keeping their assets away from stodgy defensive plays and chasing the market\u2019s growth\u2014FLO and the S&P 500 have been running almost inverse to each other for a couple of years now. But Flowers also has a problem with mismanaging expectations, and has produced mostly in-line or disappointing earnings reports during its current downtrend.<\/p>\n

ConAgra (CAG, 5.6% yield)<\/strong> has a similar volatility profile, with a low five-year beta of 0.27 and a slightly negative one-year beta. It\u2019s befitting a staples stock\u2014one with a wider business than Flowers, dealing with four different divisions: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice. As a result, it offers a more diverse product lineup that includes Birds Eye frozen vegetables, Marie Callender\u2019s and Healthy Choice frozen meals, Duncan Hines baking mixes, Slim Jim meat sticks, Reddi-wip whipped cream and Angie\u2019s Boomchickapop popcorn, among others.<\/p>\n

The financial picture is much less promising here. Profits have dropped in each of the past three years, and 2024\u2019s net income was only a bit more than a quarter of what it was in 2021. Worse, the top and bottom lines are pacing for another retreat in the current fiscal year. While the majority of its brands continue to hold or gain market share, expectations for increased inflation are holding back ConAgra, which guided down in December.<\/p>\n

CAG shares have long exemplified the \u201cDividend Magnet,\u201d for better or worse.<\/p>\n

Unfortunately, after a few years of annual dividend raises, ConAgra has once again gone more than a year without hiking the payout\u2014and it shows.<\/p>\n

The Dividend Magnet Is on Low-Power Mode<\/strong><\/p>\n

Universal Corp. (UVV)<\/strong> has always stood out to me because it\u2019s a useful oddball in a niche dividend space. Specifically, it\u2019s a \u201cpicks and shovels\u201d play in tobacco. Traditional tobacco stocks are names like Philip Morris (PM) <\/strong>and Altria (MO)<\/strong> that produce cigarettes and other tobacco products. However, Universal Corp. doesn\u2019t produce finished products\u2014it merely supplies the tobacco.<\/p>\n

Actually, it does much more\u2014in addition to procuring and processing flue-cured, burley, dark air-cured, and oriental leaf tobacco, it also has an ingredients division (Universal Ingredients) and a \u201cvalue-added agricultural business\u201d (Universal Enterprises) that includes nicotine production, a lifecycle data solution and even a compost facility.<\/p>\n

There\u2019s a decided lack of volatility in corporate financials and the dividend, which are growing, albeit slowly. But one- and five-year betas of 0.14 and 0.78 actually reflect shares that refuse to mirror the S&P 500 more than they reflect serene stock movement.<\/p>\n

Peaks and Valleys Are More Common Than You\u2019d Expect<\/strong><\/p>\n

Unfortunately, for the moment, UVV is hands-off. The company hasn\u2019t released a quarterly earnings report since August\u2014in November, it received a notice from the New York Stock Exchange that it was not in compliance for failing to report its quarter numbers and has six months to file its 10-Q. This largely stems from an internal investigation over allegations of embezzlement at a Mozambique subsidiary. Universal doesn\u2019t believe it will have a material negative impact for the fiscal year, but even if we were considering getting our feet wet, the most prudent move would be to wait until the company is back in compliance.<\/p>\n

A Staples-Esque Consumer Play<\/strong><\/p>\n

Amcor (AMCR)<\/strong> is a cyclical play that often feels like it\u2019s defensive. This Switzerland-headquartered firm makes a variety of packaging\u2014everything from shrink bags for food to blister packaging for pharmaceutical pills to sachets for cosmetic samples\u2014for consumer and healthcare companies. So, yes, consumer demand still plays a big role in Amcor\u2019s fortunes, but not as acutely as consumer cyclical companies that specialize in, say, just making snacks, or just making drinks.<\/p>\n

Indeed, Amcor\u2019s business line has enough financial stability that it boasts more than 40 years of consecutive dividend increases, putting it among the ranks of the Dividend Aristocrats\u2014a title it picked up from the 2019 acquisition of Bemis.<\/p>\n

The problem? Amcor has been largely treading water for years. So yes, volatility has been low\u2014its one- and five-year betas sit at 0.27 and 0.85, respectively\u2014but so have its prospects. Indeed, it was largely looking toward aggressive cost cuts to improve its bottom line.<\/p>\n

<\/div>\n

Little Dividend Growth, Little Growth Growth<\/strong><\/p>\n

But Amcor might very well have found a potential catalyst through another acquisition. It\u2019s currently in the process of trying to merge with U.S. packaging manufacturer Berry Global (BERY)<\/strong>, which Amcor hopes will drive volume growth through greater scale in existing categories, as well as entering new categories and geographies\u2014not to mention the potential for synergies.<\/p>\n

Healthcare<\/strong><\/p>\n

One of the highest-yielding low-beta stocks out there is Omega Healthcare Investors (OHI, 7.1% yield)<\/strong>, which sits at the intersection of healthcare and real estate. Specifically, it provides financing and capital solutions to skilled nursing facility and assisted living facility partners, with a portfolio of 962 properties in 42 states and the U.K. that are leased out to 81 different operators.<\/p>\n

Omega has turned around its fortunes over the past couple of years\u2014a combination of an improved operational story and a much friendlier interest-rate environment.<\/p>\n

OHI Stands Out in a Struggling Real Estate Sector<\/strong><\/p>\n

Its longer-term five-year beta isn\u2019t all that low, at 0.97\u2014roughly in line with the market. Its one-year beta is extremely low, at 0.20. Because while OHI has been jumpier than the real estate sector over the past year (as shown in the chart above), shares have been smooth compared to the rest of the market.<\/p>\n

In theory, its positioning in long-term care at a time when demographics are increasingly in its favor, as well as OHI\u2019s triple-net lease structures, should put the wind at Omega\u2019s back. However, I mentioned a few months ago that OHI looked frothy, and since then, the stock has pulled back sharply amid a broader pullback in real estate. The valuation has improved, with shares now trading hands at 13-times next year\u2019s FFO estimates. Reasonable though not quite a bargain.<\/p>\n

\u201cFlexible\u201d Dividend Payers<\/strong><\/p>\n

It\u2019s not often that we see traditional energy operators throwing off very high yield and low beta. But independent oil-and-gas producer Chord Energy (CHRD, 9.1% yield)<\/strong>, which operates in the Big Sky\u2019s Williston Basin, is an exception, with a 9%-plus yield, as well as one- and five-year average betas of 0.74 and 0.84, respectively\u2014though the former is a little misleading.<\/p>\n

Chord\u2019s Past Year: A Case of Low Beta, But Not Exactly Low Volatility<\/strong><\/p>\n

The bad news first: Chord has been downright rotten over the past year, with weak oil prices hacking share prices down by a little less than 40% since they peaked in June 2024. But CHRD had some froth to work off following a 615% total return since the start of 2021 that more than tripled the energy sector in that time. Even including the past few months\u2019 losses, it\u2019s still up by roughly double.<\/p>\n

Still, Chord boasts a pristine balance sheet and generates strong free cash flow even amid lean oil prices. Moreover, it has one of the industry\u2019s best free-cash-flow (FCF) payout programs, bolstered by its merger with Canadian E&P Enerplus. For at least the past few quarters, it has set return of capital (RoC) at 75% of FCF. That goes toward paying a base dividend of $1.25 per share (~4.5% yield); any additional free cash flow past that funds a variable dividend and\/or share buybacks.<\/p>\n

CHRD is tactical about these expenditures. For instance, in the second quarter, RoC was set at $197 million, and Chord bought back roughly $62 million in shares while paying out a $1.27\/share variable dividend. But in Q3, during which shares really started to tumble, RoC was set at $234 million, which included $146 million in buybacks (and the authorization of a new $750 million repurchase program) but a smaller 19-cent variable distribution.<\/p>\n

The downside? Yields can really fluctuate from year to year. But it\u2019s hard to argue Chord doesn\u2019t have shareholders\u2019 best interests at heart.<\/p>\n

Low-beta dividends don\u2019t get much bigger than International Seaways (INSW, 14.1% yield),<\/strong> which owns and operates a fleet of 83 ocean vessels that transport crude oil and petroleum products. Currently, its fleet includes 38 Medium Range (MR) tankers, 14 Long Range 1s (LR1s), 13 Suezmaxes, 13 Very Large Crude Carriers (VLCCs), and five Long Range 2s (LR2s).<\/p>\n

International Seaways, like CHRD and OHI, is another example of how low beta can sometimes be deceiving. In INSW\u2019s case, its five- and one-year betas are exceedingly low, at -0.11 and 0.14, respectively, but like many of its tanker brethren, this stock can really move.<\/p>\n

More importantly, this stock is about as tethered to its dividend as it gets.<\/p>\n

The Dividend Magnet\u2019s Force Is Strong in This One<\/strong><\/p>\n

Of course, that\u2019s because International Seaways\u2019 dividend is even more variable than Chord. INSW features a 12-cent quarterly distribution representing just 1.2% worth of yield\u2014thus, the vast majority of this double-digit dividend is heavily reliant on business conditions, which naturally also dictate the ups and downs of the stock itself.<\/p>\n

It\u2019s not ideal for retirement planners, but low beta and all, swing traders might be attracted to this mix of high potential upside and yield. Specifically, INSW boasts solid fundamentals, low capex and a low cash-flow breakeven, and if shipping rates rebound in 2025 as expected, that could be a potent combo.<\/p>\n

\u2014 Brett Owens<\/p>\n

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  • $11,000 in dividends on every $100K invested.<\/strong><\/li>\n
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  • $500K? A sweet $55,000 in yearly dividends.<\/strong><\/li>\n<\/ul>\n

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    Click here to learn more about this bargain-priced high yielder and download a free Special Report revealing its name, ticker and my complete research on it.<\/strong><\/p>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

    Worried about the next round of tariffs? Tech disruption from DeepSeek? The geopolitical landscape? All of the above? Fret not my contrarian friend\u2014here are seven wonderfully-sleepy dividend stocks. They yield between 5% and 14.1% and we are discussing them today because all seven boast low betas. This means these shares move less than the overall […]<\/p>\n","protected":false},"author":1,"featured_media":1643,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"","ocean_second_sidebar":"","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"","ocean_custom_header_template":"","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"","ocean_menu_typo_font_family":"","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"on","ocean_gallery_id":[],"footnotes":""},"categories":[29],"tags":[],"class_list":["post-1642","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-dividends","entry","has-media"],"_links":{"self":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/1642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/comments?post=1642"}],"version-history":[{"count":0,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/1642\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media\/1643"}],"wp:attachment":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media?parent=1642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/categories?post=1642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/tags?post=1642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}