Seeking Alpha
Newsletter provider, fund holdings, insider ownership
Profile| Send Message|
( followers)  

Low volatility is a must for the “do-it-yourself” investor. When you don’t have time to monitor a stock everyday, let alone several times throughout the day, a volatile stock could tank your portfolio if it goes unchecked.

Of course, volatility is only one measure of an investment – you also have to make sure that the company is priced well. Overpaying is always bad, be it for an investment or your morning coffee. Lastly, dividends are desirable. There are tons of great stocks out there that don’t pay dividends, but, all things being equal, why not choose the stock that gives you “cash back”? Historically high dividend stocks outperformed the market despite being considered as “less risky”.

The stocks on this list have all these features. They offer forward P/E ratios under 15, dividends over 3%, and betas under 1.5.

Alliance Resource Partners LP (NASDAQ:ARLP) is an industrial metals and minerals company with a $3.02 billion market cap. It has a 9.92 forward P/E ratio and pays a 4.65% dividend yield on a 43.71% payout ratio. In the last year, ARLP has returned 25.50%. The company has a beta of 0.87 and carries a recommendation of 2.3 on a scale in which 1.0 means “Strong Buy” and 5.0 indicates “Sell.” It recently traded at $80.32 a share. Chuck Royce’s Royce & Associates had $18.23 million in ARLP at the end of the third quarter.

Cleco Corp. (NYSE:CNL) is an electric utilities company with a $2.21 billion market cap. It has a 14.79 forward P/E ratio and pays a 3.45% dividend yield on a 34.55% payout ratio. In the last year, CNL has returned 21.53%. The company has a beta of 0.51 and carries a recommendation of 2.4 on a scale in which 1.0 means “Strong Buy” and 5.0 indicates “Sell.” It recently traded at $36.22 a share. Ken Fisher’s Fisher Asset Management had $17.28 million invested in CNL at the end of the third quarter.

General Mills, Inc. (NYSE:GIS) is a processed and packaged goods company with a $25.83 billion market cap. It has a 14.21 forward P/E ratio and pays a 3.04% dividend yield on a 48.80% payout ratio. In the last year, GIS has returned 14.98%. The company has a beta of 0.20 and carries a recommendation of 2.3 on a scale in which 1.0 means “Strong Buy” and 5.0 indicates “Sell.” It recently traded at $39.85 a share. Ric Dillon’s Diamond Hill Capital had $137.16 million in the company at the end of the third quarter.

H&R Block, Inc. (NYSE:HRB) is a personal tax services company with a $4.76 billion market cap. It has a 9.56 forward P/E ratio and pays a 4.92% dividend yield on a 44.62% payout ratio. In the last year, HRB has returned 35.05%. The company has a beta of 0.65 and carries a recommendation of 2.2 on a scale in which 1.0 means “Strong Buy” and 5.0 indicates “Sell.” It recently traded at $16.11 a share. Andreas Halvorsen’s Viking Global had $317.72 million in HRB at the end of September after increasing its stake in the company by +18% during the third quarter.

Intel Corp. (NASDAQ:INTC) is a diversified electronics company with a $128.57 billion market cap. It has a 10.61 forward P/E ratio and pays a 3.33% dividend yield on a 30.30% payout ratio. In the last year, INTC has returned 25.87%. The company has a beta of 1.09 and carries a recommendation of 2.3 on a scale in which 1.0 means “Strong Buy” and 5.0 indicates “Sell.” It recently traded at $25.36 a share. Lansdowne Partners had $491.52 million in INTC at the end of the third quarter, roughly 6.58% of its portfolio.

Maxim Integrated Products, Inc. (NASDAQ:MXIM) is a diversified electronics company with a $7.61 billion market cap. It has a 14.82 forward P/E ratio and pays a 3.37% dividend yield on a 49.63% payout ratio. In the last year, MXIM has returned 11.97%. The company has a beta of 1.09 and carries a recommendation of 2.5 on a scale in which 1.0 means “Strong Buy” and 5.0 indicates “Sell.” It recently traded at $26.29 a share. Jim Simons’ Renaissance Technologies had $36.48 million in MXIM at the end of September after upping its stake in the company by +35% during the third quarter.

Northeast Utilities (NYSE:NU) is a diversified utilities company with a $6.20 billion market cap. It has a 14.23 forward P/E ratio and pays a 3.14% dividend yield on a 45.95% payout ratio. In the last year, NU has returned 14.90%. The company has a beta of 0.47 and carries a recommendation of 2.2 on a scale in which 1.0 means “Strong Buy” and 5.0 indicates “Sell.” It recently traded at $34.55 a share. D.E. Shaw’s D E Shaw had $42.84 million in NU after raising its holding in the company by +9852% during the third quarter.

Sempra Energy (NYSE:SRE) is a gas utilities company with a $13.39 billion market cap. It has a 12.55 forward P/E ratio and pays a 3.44% dividend yield on a 32.71% payout ratio. In the last year, SRE has returned 11.97%. The company has a beta of 0.53 and carries a recommendation of 2.5 on a scale in which 1.0 means “Strong Buy” and 5.0 indicates “Sell.” It recently traded at $55.76 a share. Phill Gross and Robert Atchinson’s Adage Capital Management had $47.86 million in SRE at the end of September after increasing its position in the company by +43% during the third quarter.

Source: 8 Stocks with Low Volatility and High Dividends