Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

If you are looking to increase your portfolio’s income while managing your risk, then this may be an interesting starting point for your analysis:

To compile this list we looked for stocks with a dividend yield greater than 2%, beta below 1, and with low Governance Risk Indicators, according to the ratings developed by the RiskMetrics group.

RiskMetrics introduced the Governance Risk Indicator in 2010 and it evaluates the following governance areas:

  • Audit
  • Board Structure
  • Shareholder Rights
  • Compensation

All the companies in this list have low risk levels in each of these areas when comparing with the standard market practices.

click for expanded image



We also created a price weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. The chart (click to enlarge) shows the list to be slightly higher yet steady correlated to the market average. To access a complete analysis of this list's recent performance, click here.



Considering this information, which of these stocks are you most bullish about? (Note: All of these stocks have low corporate governance risk ratings.)

1. Main Street Capital Corporation (NYSE:MAIN): Diversified Investments Industry. Market cap of $356.05M. Dividend yield at 8.2%. Beta at 0.8. The stock has had a couple of great days, gaining 5.78% over the last week.

2. W. P. Carey & Co. LLC (NYSE:WPC):
Property Management Industry. Market cap of $1.42B. Dividend yield at 5.7%. Beta at 0.95. The stock has gained 32.57% over the last year.

3. Verizon Communications Inc. (NYSE:VZ):
Telecom Services Industry. Market cap of $105.89B. Dividend yield at 5.21%. Beta at 0.67. The stock has gained 38.32% over the last year.

4. UniSource Energy Corporation (NYSE:UNS): Electric Utilities Industry. Market cap of $1.42B. Dividend yield at 4.35%. Beta at 0.74. The stock has gained 21.32% over the last year.

5. Portland General Electric Company (NYSE:POR): Electric Utilities Industry. Market cap of $1.94B. Dividend yield at 4.04%. Beta at 0.68. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 4.04%, current ratio at 1.54, and quick ratio at 1.42. The stock has gained 38.46% over the last year.

6. Pfizer Inc. (NYSE:PFE):
Drug Manufacturers Industry. Market cap of $166.94B. Dividend yield at 3.83%. Beta at 0.72. The stock has gained 31.47% over the last year.

7. Paychex Inc. (NASDAQ:PAYX): Staffing & Outsourcing Services Industry. Market cap of $11.86B. Dividend yield at 3.78%. Beta at 0.85. The stock has gained 13.54% over the last year.

8. Johnson & Johnson (NYSE:JNJ):
Drug Manufacturers Industry. Market cap of $184.12B. Dividend yield at 3.39%. Beta at 0.61. The stock has had a good month, gaining 12.1%.

9. Kraft Foods Inc. (KFT): Food Industry. Market cap of $60.95B. Dividend yield at 3.34%. Beta at 0.58. The stock has gained 19.05% over the last year.

10. Public Storage (NYSE:PSA): REIT. Market cap of $20.04B. Dividend yield at 3.23%. Beta at 0.92. The stock has gained 30.81% over the last year.

11. Procter & Gamble Co. (NYSE:PG): Personal Products Industry. Market cap of $186.57B. Dividend yield at 3.14%. Beta at 0.51.

12. Chevron Corp. (NYSE:CVX):
Major Integrated Oil & Gas Industry. Market cap of $206.57B. Dividend yield at 3.04%. Beta at 0.76. After a solid performance over the last year, CVX has pulled back during recent sessions. The stock is -4.05% below its SMA20 and -3.52% below its SMA50, but remains 12.96% above its SMA200. The stock has gained 34.8% over the last year.

13. PS Business Parks Inc. (NYSE:PSB): REIT. Market cap of $1.44B. Dividend yield at 3.02%. Beta at 0.94. The stock has gained 1.25% over the last year.

14. Pepsico, Inc. (NYSE:PEP): Beverages Industry. Market cap of $112.16B. Dividend yield at 2.9%. Beta at 0.54. The stock has gained 10.02% over the last year.

15. United Parcel Service, Inc. (NYSE:UPS):
Air Delivery & Freight Services Industry. Market cap of $73.31B. Dividend yield at 2.8%. Beta at 0.82. The stock has gained 14.47% over the last year.

16. The Coca-Cola Company (NYSE:KO): Beverages Industry. Market cap of $156.38B. Dividend yield at 2.75%. Beta at 0.6. The stock has gained 31.62% over the last year.

*Corporate governance ranking sourced from RiskMetrics, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 16 High Dividend Yield, Low Beta Stocks With Minimal Corporate Governance Risk