These 3 Low-Volatility Names for a Mixed Market
Investors’ ability to deal with volatility in the markets will ultimately determine their long-term success. We’ve recently been treated to some of the best years in the history of the stock market, which is why many are having a tough time adjusting to the difficult market conditions occurring thus far in 2022. It’s difficult to predict how volatility will continue. However, it is important to have a solid playbook to handle big moves to the upside and take advantage of stocks that perform well in a “risk off” tape.
If you are looking for a place to start when dealing with volatility, it is worth focusing on low beta stocks that have a tendency to be resilient to market downturns. These stocks are great for conservative investors. They provide steady gains over the long-term, so adding shares even if they are pulling back could be a long-term profitable investment.
Below is a list with 3 stock picks that conservative investors should consider to help them understand the type of names they might be interested in adding to this challenging market.
PepsiCo (NASDAQ: PEP)
PepsiCo, a blue-chip company that makes consumer staples like PepsiCo, tends to be resilient in times of volatility. It’s also one of the few bright spots in a market where there is little. PepsiCo is a global leader in food and beverages thanks to its diverse product portfolio. PepsiCo is expected to see organic sales growth as the economy recovers. However, a renewed focus on growing its healthy product lines could provide another growth driver.
Consumer preferences are changing to favor these types of health-conscious snack foods, and PepsiCo’s products like Sabra Hummus, Baked Lays, and Bubly sparkling water tell investors that the company’s management understands the growth potential there. PepsiCo’s defense properties are also great. The company will have demand in any economy. Finally, the company has a 0. 66 beta value, a history of dividend growth, and a share repurchase program make this an ideal pick for conservative investors to consider.
Berkshire Hathaway Inc (NYSE: BRK.B)
Berkshire Hathaway, which is a conservative stock, is a great one to own for its exposure to the insurance industry. Warren Buffett, a legendary investor, is the head of Berkshire Hathaway. This should give investors additional confidence that their capital will be in good hands. Berkshire Hathaway, in addition to insurance, is a holding company offering exposure to financial services, energy retailing, manufacturing and other industries. This is an attractive selling point.
What’s also nice here is that the company generates a ton of cash each quarter t