With the market getting more rocky, it makes sense for income
investors to check out high-yielding stocks with low
volatility.Flower Foods (
) andCampbell Soup (
) are two such issues.
Flower Foods rallied to an all-time high Wednesday after
Reuters reported the firm is set to buy a number of bread labels
from the bankrupt Hostess Brands for $360 million. The deal
includes the iconic Wonder Bread, as well as Home Pride and
Thomasville, Ga.-based Flower Floods makes breads, rolls and
snack cakes labels such as Cobblestone Mill, Nature's Own and
Flower Foods has a beta of 0.34, signaling that it has lower
volatility than a market proxy such as the S&P 500. The
S&P 500's beta is 1.
The stock pays 64 cents a share on an annual basis, which
works out to a yield of about 2.3%.
Campbell Soup isn't normally a fast mover, but it has been hot
this year. The stock is at a six-year high and on pace for a
seventh straight weekly gain. But Campbell Soup is extended after
clearing a shallow cup base in early February.
With a beta of 0.46, Campbell Soup has a little less than half
of the volatility of the S&P 500. The stock has outperformed
the S&P 500 by more than 2 to 1 this year.
Campbell Soup pays a quarterly dividend of 29 cents a share,
or $1.16 a share on an annual basis. It has a yield of 2.9%.
The company's earnings slipped 4% to $2.45 a share in its
fiscal 2012 ending in July, but analysts polled by Thomson
Reuters see profit rising 4% in fiscal 2013.
Campbell recently outlined growth strategies, such as
expanding its overseas presence and growing its healthy beverages
and snacks business.