Looking for potential "safe haven" investments? For ideas on where to look, we ran a screen you may find interesting.
We began by screening for high dividend yield stocks paying dividend yields above 4% and sustainable payout ratios below 50%. We then screened these stocks for those with strong positive correlation to the volatility (VIX) index. This indicates that these stocks have tended to perform well during times of market volatility and uncertainty.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
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. To access a complete analysis of this list's recent performance, click here.
Do you think these stocks are being treated as safe havens? Use this list as a starting point for your own analysis.
List sorted by dividend yield.
1. RadioShack Corp. (NYSE:RSH): Engages in the retail sale of consumer electronic goods and services through its RadioShack store chain and kiosk operations. Dividend yield at 6.88%, payout ratio at 24.47%. Correlation with the VIX index at 0.739 over the last 60 days.
2. SK Telecom Co. Ltd. (NYSE:SKM): Provides wireless telecommunications services using code division multiple access and wide-band CDMA technologies. Dividend yield at 5.66%, payout ratio at 48.82%. Correlation with the VIX index at 0.638 over the last 60 days.
3. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk. (NYSE:TLK): Provides telecommunication and network services worldwide. Dividend yield at 4.90%, payout ratio at 4.79%. Correlation with the VIX index at 0.814 over the last 60 days.
4. Etablissements Delhaize Freres et Cie Le Lion S.A. (NYSE:DEG): Operates food supermarkets in North America, Europe, and southeast Asia. Dividend yield at 4.42%, payout ratio at 28.45%. Correlation with the VIX index at 0.635 over the last 60 days.
*Price data sourced from Yahoo! Finance, 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.