Every so often, the high-beta, growth-oriented momentum portfolio needs a little peace and quiet via a prudent diversification into lower-beta equities. A mix of varying beta stocks can provide diversification within a 100% stock allocation, whether it consists of consumer staples, healthcare, energy, telecom, etc.
Baseline Analytics ran a stock screener selecting equities with the following characteristics:
- Below market beta of 0.8 or lower
- Return on equity of 10% or higher
- Price Earnings Ratio under 15
- Dividend yield of 1.5% or higher
The attached stock screen has not been combed for timely trades or other fundamental or technical indicators that might suggest a high reward-to-risk ratio. We leave that work up to our StockStash service. Click on the link below and it will open an Excel file with our low beta selections.