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Hedge Against Market Volatility With These Low Beta Stocks

With a looming Brexit vote, there is a good chance that we will see some more market volatility after the EU referendum, which is to take place on the 23 rd of June. The CBOE Volatility Index VIX has been on a major tear so far this month, and there is a good chance that it will continue to surge, especially if a Brexit is the outcome. The index is often referred to as an index which measures the amount of fear in the market. As the risk for seeing increased levels of volatility remains, you may want to hedge against your exposure to the ups and downs of the market.

A great way to hedge your market exposure is by buying up low beta stocks. These companies tend to see less price fluctuation than the broader market, and these stocks may be what your portfolio needs. Many investors are worried about seeing a massive asset sell-off because of Brexit, and that's why it is important to get defensive. These buy-ranked low beta stocks stand to help you in sheltering your returns and maintaining your portfolio's value.

Avista Corporation- AVA

Avista is a diversified energy company with utility and subsidiary operations located throughout North America. The company generates a large portion of its sales from electricity revenues. It also has a sizable natural gas portfolio. Avista is a Zacks Rank #2 (Buy) and it also gets a score of "A" for growth in our Style Scores. Expect less volatile trading with Avista, as it has a beta of just 0.44. The company doles out a 3.23% dividend. The dividend payouts should help to provide some income to your portfolio.

BCE Inc- BCE

BCE Inc. is a leading communications company in Canada. The corporation provides wireline and wireless communications products and services across several segments, some of which include TV services, e-commerce solutions, and Internet access. The company is a Zacks Rank #1 (Strong Buy) and it has a market cap of $40.2 billion. BCE pays out a nice 4.5% dividend, and it also has a beta of just 0.38.

ConAgra Foods Inc- CAG

ConAgra is a packaged food company. Its four segments include Consumer Foods, Commercial foods, Ralcorp Food Group, and Ralcorp Frozen Bakery Products. The corporation makes meals, condiments, snacks, potato products, milled grain ingredients, and more. CAG is a Zacks Rank #2 (Buy), and it earns a "B" for growth in our Style Scores. The company offers shareholders a 2.12% dividend, and it experiences less volatility than traditional stocks, as its beta is just 0.38.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

AVISTA CORP (AVA): Free Stock Analysis Report

BCE INC (BCE): Free Stock Analysis Report

CONAGRA FOODS (CAG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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