Seeking Alpha
Profile| Send Message|
( followers)  

We are in the middle of the European debt crisis. Euro officials have started talking about Greece's possible exit from the euro. Moody's recently cut 26 Italian banks' ratings. The Spanish government is forcing banks to set aside an additional $38 billion to cover massive losses in real estate loans. This is the fourth attempt in three years to clean up the country's banking system.

We believe one of the best alternatives for conservative income investors is selecting stocks with low beta ratios during the negative fluctuations in the market. A stock has a low beta ratio if its returns change independently of changes in the market's returns.

Among 117 stocks that were recommended on Jim Cramer's Mad Money during the last 30 days, we have selected our 5 favorite dividend stocks with low beta ratios. All stocks in our list have beta ratios lower than 0.6, forward P/E ratios lower than 15 and dividend yields higher than 4%. We obtained market data from Finviz and hedge fund holdings from Insider Monkey.

Stock

Market Cap
(Billion $)

Sector

Dividend Yield

Forward P/E

Beta

AT&T, Inc. (NYSE:T)

196.9

Technology

5.2%

13.2

0.58

Verizon Communications Inc. (NYSE:VZ)

116.9

Technology

4.9%

14.7

0.52

Duke Energy Corporation (NYSE:DUK)

29.1

Utilities

4.6%

14.6

0.36

Waste Management (NYSE:WM)

15.5

Industrial Goods

4.2%

13.5

0.54

El Paso Pipeline Partners (NYSE:EPB)

6.9

Basic Materials

6.2%

14.8

0.21

AT&T provides wireless and wireline telecommunications services and sales of wireless equipment. AT&T recently traded at $33.34 and has a 5.2% dividend yield. AT&T gained 12.5% during the past 12 months. The stock has a market cap of $196.9 billion, forward P/E ratio of 13.2 and total debt/equity ratio of 0.63. AT&T also had an EPS growth rate of -18.8% during the last five years.

Verizon Communications is another mega-cap dividend technology stock. VZ recently traded at $40.76 and has a 4.9% dividend yield. VZ gained 15.9% during the past 12 months. The stock has a market cap of $116.9 billion, forward P/E ratio of 14.7 and total debt/equity ratio of 1.41. VZ also had an EPS growth rate of -14.7% during the last five years.

Duke Energy is an energy company operating in the United States and Latin America. DUK recently traded at $21.7 and has a 4.6% dividend yield. DUK gained 18.8% during the past 12 months. The stock has a market cap of $29.1 billion, forward P/E ratio of 14.6 and total debt/equity ratio of 0.9. DUK also had an EPS growth rate of 7.1% during the last five years. Louis Navellier's Navellier & Associates initiated a $41 million brand new position in Duke Energy during the last quarter of 2011.

Waste Management provides waste management in North America. WM recently traded at $32.68 and has a 4.2% dividend yield. WM lost 10.7% during the past 12 months. The stock has a market cap of $15.5 billion, Forward P/E ratio of 13.5 and Total debt/equity ratio of 1.6. WM also had an EPS growth rate of -0.6% during the last five years. Ray Dalio's Bridgewater Associates and Andrew Sandler's Sandler Capital Management both initiated more than $8 million brand new positions in WM during the last quarter of 2011.

El Paso Pipeline Partners provides storage and transportation services of natural gas in the United States. EPB recently traded at $33 and has a 6.2% dividend yield. EPB lost 2.9% during the past 12 months. The stock has a market cap of $6.9 billion, Forward P/E ratio of 14.8 and Total debt/equity ratio of 2.02. EPB also had an EPS growth rate of 12.3% during the last five years. Jim Simons' Renaissance Technologies initiated a $5 million brand new position in EPB during the last quarter of 2011.

Source: 5 Stable Dividend Stocks Favored By Jim Cramer